Australia needs to reduce oil imports

Australia has a wealth of untapped natural resources that can produce conventional product, and technology innovators that can produce renewable diesel and sustainable aviation fuel from biological or waste feedstocks and synthetic fuels using domestic energy.

If the next 25 years were to cost Australia another $100 billion in oil-shock premiums, we can keep paying or invest the equivalent in reducing oil dependence; cutting future import exposure, stimulating domestic industry and technology and building national resilience at the same time.

Naturally, not every domestic energy project will be worthwhile. Resilience is not an excuse for unlimited subsidy, but there should be an attempt to properly assess how our current strategy compares to the nation building one.

This is not a proposal to return to the 1970’s when Australia was essentially liquid fuels independent. It’s about understanding how much imported-oil exposure we should retain, and where it should be reduced, implementing a strategy that builds resilience in an economically rational way.