Australia Considers Building First New Oil Refinery Since 1960 Amid Global Energy Shocks

The Australian government is planning to spend $4 million on a study to determine whether building a new oil refinery in Western Australia would be economically viable. The proposed facility, which would be the country's first since 1960, aims to help buffer Australia from global oil shocks and fuel costs.

Currently, almost 90% of Australia's daily fuel consumption is imported, much of it refined product from countries such as South Korea, Japan, Singapore, Malaysia, and Taiwan. However, experts warn that a new refinery would only partially shield the country from international oil-supply shocks, as it would still rely on imported crude oil.

Resources Minister Madeleine King has stated that having refining capacity would improve Australia's resilience in times of crisis, but acknowledged that it is 'somewhat self-defeating' to build a new refinery without also increasing domestic crude oil production. Financial analysts estimate the cost of building a new refinery could exceed $15 billion.