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Mobydisc said..
Australia has plenty of oil, its just not financially viable to extract it. Personally I think if petrol or diesel reserves fell to very low levels in Australia with prices suddenly going up, a lot of ships full of these fuels would start coming here to sell their cargo. Thus the problem would solve itself through the market operating.
If there were restrictions on the market operating like blockades and sanctions, it would not take too long for fuel to be produced here. The methods to do it are pretty well established and we'd have the capital to do it. Just like with a lot of other production, if its cheaper to get it done somewhere else then it makes sense to get it done somewhere else. This includes someone else storing fuel for us. Yes it could work out bad for us if the Chinese or Americans decide to declare war on Australia.
Is oil sold that way? Its a genuine question. Do people just bring their tanker to you, or do you go pick it up from the supplier in your own tanker? Do you make contracts well ahead of time, or do you just pop down to the local oil supplier and buy up on the day?
Someone on here must know, but I suspect Australia has a considerable supply of oil. Surely there are oil rigs off the coast here somewere. I think in Vic and WA, surely?
I know when I was reading up on Venezuela's oil problems that they had a drama when they filled the tanker with the wrong grade of oil, and had to pay a penalty to the tanker for having the wrong grade. I suspect that sort of cash handover is not normal and it would have been contracted well before delivery.