Could Australia become a petrol power? Experts reveal whether it could ever happen - as Trump tells us: Find your own fuel

By STEPHEN GIBBS, SENIOR NEWS REPORTER, AUSTRALIA Published: 02:22, 6 April 2026 | Updated: 02:23, 6 April 2026 Australia is unlikely to ever become fuel self-sufficient and even if it did briefly produce enough petrol and diesel to meet domestic demand prices could go up rather than down. Experts say that if all Australia's crude oil reserves could be refined locally it would not produce the sort of fuel the nation relies upon and would only last about two years. The US and Israel's attacks on Iran have caused severe fuel shortages, with vital supply lines through the Strait of Hormuz effectively closed. Donald Trump has warned allies to 'get your own oil' and be prepared to 'fight for yourself' as he indicated a readiness to withdraw from the war on Iran. In a typically blunt post on his Truth Social network on Tuesday, the US president told countries trying to find jet fuel to 'build up some delayed courage' and 'go to the Strait' themselves. 'I have a suggestion for you: Number 1, buy from the US, we have plenty, and Number 2, build up some delayed courage, go to the Strait, and just TAKE IT,' he wrote. 'You'll have to start learning how to fight for yourself, the USA won't be there to help you anymore, just like you weren't there for us. 'Iran has been, essentially, decimated. The hard part is done. Go get your own oil!' Australia is unlikely to ever be fuel self-sufficient and even if it did produce enough petrol and diesel to meet domestic demand prices could go up rather than down Experts say that even if all Australia's crude oil reserves could be refined it would not produce the sort of fuel the nation relies upon and would only last about two years The Middle East conflict and rising prices at the bowser have left Australians asking if the country could produce enough of its own petrol, diesel and jet fuel to be self-sufficient. Australia imports most of its fuel from Asian refineries, which source crude oil from the Middle East.  Domestic oil production has plummeted by about 90 per cent since 2000 to 69 million barrels last year and more than 90 per cent of that is exported to Asian refineries.  Ben Jefferson is an associate at Grattan Institute's Energy and Climate Change Program and this week summed up Australia's chances of becoming fuel self-sufficient in a LinkedIn post. 'Now that fuel shortages look like a real possibility, there is some talk about whether Australia should try to become more self-reliant,' he wrote. 'We export crude oil, why shouldn't we use it locally? There are several reasons we can't become self-reliant on our own oil. The main one is that we don't have very much of it.' Australia uses 2,238 petajoules of petroleum products a year. A petajoule is one million billion joules and a joule represents one watt of power radiated or dissipated for one second. Geoscience Australia keeps track of both 'proven and provable' (2P) and 'contingent' (2C) amounts of commodities such as crude oil. 2C amounts are not considered commercial for 'contingent' reasons. Donald Trump has warned allies to 'get your own oil' and be prepared to 'fight for yourself' as he indicated a readiness to withdraw from the war on Iran Australia has 1,475 petajoules of 2P crude oil reserves and 3,316 petajoules of 2C crude oil resources. 'That means that if we used all the crude oil resources we've got (with 100 per cent yield), we'd be through them in two years,' Jefferson said. Australia also has reserves of condensate, a lighter mix of oil which can be used to make petrol. 'But it's diesel we really need, and condensate is basically useless for that,' Jefferson said. 'And again, even if we assumed a full 100 per cent yield - which we wouldn't get - our 2P and 2C condensate would run out in six years or so.' Jefferson said even if Australia extracted more crude oil reserves it faced the hugely expensive prospect of refining it. Australia had eight major refineries as recently as 2005 but high transport and labour costs meant it became more cost-effective to import refined fuel products and to export oil.  The country's only remaining refineries are Ampol's facility at Lytton in Brisbane and Viva Energy's at Corio in Geelong.  Australia had eight major refineries as recently as 2005 and now has two. The Exxon Mobil refinery in Melbourne's Altona is being converted into an import terminal (above) Domestic oil production has plummeted by about 90 per cent since 2000 to 69 million barrels last year and more than 90 per cent of that is exported to Asian refineries 'To produce the amount of petroleum products we consume every year, we'd need to triple our refining capacity,' Jefferson said. 'And as a starting point, Australia's two existing refineries cannot work with Australian crude or condensate without serious investment to retrofit them. 'So most of the refining capacity would need to be new.' Operating smaller refineries at a higher cost than international operators would likely mean the price of fuel was passed on to consumers.  Jefferson said new refineries generally cost somewhere between $5billion and $15billion each. 'And the two refineries still in Australia are both receiving government subsidies,' he said. 'If we do build new refineries at the significant expense they will require, they will have to be used as backups.  'What we really need is a serious, resilient, fuel import, storage, and demand management strategy.' The US and Israel's attacks on Iran have caused severe fuel shortages, with vital supply lines through the Strait of Hormuz (above) effectively closed Jefferson said Australia also had 'unconventional' shale oil reserves which could potentially be tapped.  'We have about 35 years of it at current consumption rates,' he said. 'But we have never produced shale oil in Australia, and there are no proven or provable reserves. 'Manufacturing it would take a huge investment, not just of resources, but of know-how and industrial development. This is a possibility, but it would be a "big bet".' Tony Wood, senior fellow of the energy program at Grattan, noted the same major barriers to Australia increasing its crude oil production and domestic refinery capacity. 'Australia would need four new refineries, each with the combined capacity of the current ones, to meet our annual domestic demand,' he has said.  'While they could feasibly process Australian crude oil, they may not be able to make our current fuel mix. 'Taken together, cost, risks, technical limitations, and development timelines suggest a domestic supply and production strategy doomed to failure.'  Queensland's Taroom Trough, in the Bowen Basin about 480km north-west of Brisbane, is one project cited as having significant potential for development. The area is pictured Wood believed Australia would be better placed focusing on alternatives to oil-derived products and increasing its fuel reserves. Australian Energy Producers chief executive Samantha McCulloch has said fuel security could be improved by developing new oil basins. 'Australia has significant underdeveloped oil resources that, with the right policy settings, could strengthen fuel security and reduce reliance on imports,' she told 7NEWS.com.au. Queensland's Taroom Trough, in the Bowen Basin about 480km north-west of Brisbane, is one project cited as having significant potential for development. The Crisafulli Liberal National Party government awarded exploration rights for the Taroom Trough, which is believed to hold oil and gas deposits, in February before the US and Israel attacked Iran. Australian Energy Producers Queensland director Keld Knudsen said opening up new basins such as the Taroom Trough 'is essential to securing Australia’s next wave of oil and gas supply'. 'The scale of the opportunity is significant, with the potential to establish Australia’s first major new oil province since the 1970s,' he said. 'New supply is key to putting downward pressure on prices and ensuring reliable, affordable energy for households and industry - with domestic supply protections ensuring Australians come first.' In the short term, Australia's fuel excise will be slashed from 52.6 cents to 26.3 cents per litre for three months. In the longer term, the country seems set to continue to rely on overseas supplies for its petrol, diesel and aviation fuel. No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? 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