‘If we continue as before, the energy supply to meet the needs of the world economy over the next twenty-five years is too vulnerable to failure arising from under-investment, environmental catastrophe or sudden supply interruption.’   International Energy Agency, 2006

Controlling our Energy Future

Australia’s self sufficiency in crude oil was short lived, lasting from about 1984 to 2001. Future growth in demand and decline in crude oil production is forecast to result in Australia needing to import around 600, 000 barrels per day of crude oil or petroleum products by 2015. With oil demand and production in South East Asia, a traditional source of Australian oil imports, showing a similar trend, future oil Australian oil supplies will come increasingly from the Middle East. As demand increases, concern over energy security – the term used to refer to the delivery and price risks associated with the supply of energy – is also rising.

Chart courtesy of Australian Petroleum Producers and Explorers Association.

By establishing an environmentally acceptable process for converting coal to transport fuels, (and potentially other products), the Monash Energy project can help balance Australia’s future strategic energy security.

By introducing coal as another source of energy into world trade in transport fuels, coal-to-liquids can help enhance the world’s energy security. With up to 20% of the world’s known reserves of brown coal, this is a real opportunity for the Latrobe Valley. The diagram below shows the opportunity for coal conversion technologies to enhance energy security by increasing coal’s share of the world energy trade.