Australia’s reliable petrol source at risk due to Shell refinery shutdown
Australia’s access to dependable gasoline source is in threat as its oil refining capacity continues to decline.
Considerations on shutting down its refinery in western Sydney are made by Shell Australia due to the cut-throat competition brought about by new mega-refineries in Asia.
With the processing plant’s closure at hand, Shell workers at Clyde in Western Sydney ask what is to happen to them next.
Shutting down the Clyde refinery would reduce its present employees of 310 to only 30 or 50 people needed by the company.
Ron Bowden, general manager of the Service Station Association, reported that the Australian facilities cannot compete with the ostensible 'mega refineries' in Asia.
This puts the future of Australian refining businesses into obscurity, but BP and Caltex assured that maintenance on their plants would keep them operating in good condition even with the economies of scale of the bigger Asian plants.
Bowden confirms Australia’s growing dependence on foreign petroleum products. He explained that instead of importing 25 per cent of petrol needs and 50 per cent of diesel needs, the company is now importing another 15 percent on top of everything.
Bowden added that the plant’s closure would not bring about a change in the price of petrol in Australia immediately, but he says the circumstances could change in the long period.
Greens Senator Christine Milne urges the Federal Government to make this situation their major concern. Milne sees the need for Australia to reduce its dependence on oil imports as a key solution to impeding this type of nationwide problem.
"Now is a wake-up call because, as long as there is available supply, we will be able to get fuel to Australian specifications from these mega refineries in Asia," Milne said.
On the contrary, Milne furthered, "But as the oil crisis deepens, it is going to be much more expensive, and not necessarily easily available, and that is the point when it's really going to adversely impact our economy, and this should be the point at which Australia says we need to now oil-proof our economy and get off our dependence on foreign oil."