Canavan offers challenge on oil reserves

Federal Resources Minister Matt Canavan wants the energy sector to find and develop more domestic oil to bolster Australia's emergency reserves.

Federal Resources Minister Matt Canavan has urged the energy sector to find and develop more oil reserves to help bolster Australia's fuel supplies.

The government this month ordered an urgent review of Australia's liquid fuel reserves as stocks dipped well under the 90 days mandated by the International Energy Agency.

Senator Canavan said meeting the IEA test was not enough to say "job done" and was only part of what the review would consider.

"We also need to look and closely examine whether we can boost domestic oil production," the minister told reporters in Adelaide.

"If we can do that, we both reduce the stringency of the other requirements of the test and we'll also have more sustainable security in our fuel and energy needs.

"That's something that we can prospectively deliver."

The minister offered a similar message to the oil and gas industry in an address on Tuesday to the Australian Petroleum and Production and Exploration Association.

His comments came amid fears the country had just days of emergency fuel stocks.

Fairfax Media reported recently that Australia had only a 22-day supply of crude oil, 59 days of LPG, 20 days of petrol, 19 days of aviation fuel and 21 days of diesel.

Announcing the review, Federal Energy Minister Josh Frydenberg described the assessment as a "prudent and proper thing to do to make sure we aren't complacent".

"The assessment will also help inform Australia's plan to return to compliance with the International Energy Agency's emergency stockholding obligations by 2026," Mr Frydenberg said.

Prime Minister Malcolm Turnbull characterised the review as "good housekeeping".

It comes after the last National Energy Security Assessment in 2011 and is expected to be completed by the end of the year.


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Source: AAP


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