This current oil crisis, if not handled well by the Australian government, could not only see diesel and petrol supplies dry up, leading to petrol rationing (a sensible move) coming in, but also, in a worst-case scenario, food rationing. If the farmers can’t grow and get food to the cities, we starve. This is a very real scenario.
It is imperative the Australian government gets its immediate response right, and quickly, but also takes the necessary steps to ensure we are never caught short again. Regardless of this current crisis, we were always vulnerable as a result of having low stocks of fuel, but also closing perfectly good oil refineries and stopping drilling for and producing oil. We also stopped or restricted gas production. 90% of our fuel came in big, vulnerable tankers from overseas. The late, great Jim Molan saw this 15 years ago, and none of his colleagues in the federal parliament took any notice.
This country, with its ample supply of oil, gas, coal, uranium and other energy sources, should, if we play our cards right, not only be self-sufficient but also be in the box seat to make a lot of money out of supplying other countries with more of our energy products, gas to give just one example.
It’s good to see the Queensland government planning to open up a new oil field. Other governments must follow suit. It seems you can bring on a new oil field in a couple of years, if not sooner. We need the whole suite – new gas fields, new oil fields, and to build nuclear reactors for the future. We can become a real energy superpower, not some fairyland version of one Chris Bowen dreams about.
The world needs oil for moving things around, powering industry, making fertilisers and making plastic pipes. We are absolutely stuffed without it. It is criminal how governments of all persuasions have ignored the need for securing our energy future. We need rationing of diesel to ensure only farmers and essential services get it.
Let’s also get smart and start taxing our gas sales properly. As Qatar has lost about 20% of capacity as a result of Iranian missile strikes, it’s a heaven-sent opportunity for us to profitably fill the void. Instead of the paltry 2% tax we pay for gas, I agree with the ACTU that we should charge 25%. That will pay for the new oil fields and gas fields and probably have money left over to spend on more defence. This current disaster could be a great opportunity for Australia yet, if properly handled.
On the war itself, I dread the US losing interest due to problems with the Strait of Hormuz. We are not dealing with normal world leaders. We are dealing with extreme mahdists who don’t care how many people they kill, including themselves.
Wars are not without risk. However, the Gulf states may well join in soon, and boots on the ground are needed. (Kharg Island in the straits is the obvious place to start. A possibility would be to set up the Iranian resistance there, perhaps under the old Shah’s son, as a free Iranian state.)
I’d suggest the 2001 campaign against the Taliban in Afghanistan is a good precedent, where minimal use of US, British and Australian special forces, helping local fighters like the Northern Alliance, supported by air assets, rid Afghanistan of the Taliban in three months.
