Australia is in talks with the U.S. to buy millions of barrels of oil to boost the current dwindling fuel reserves in the country, the government has announced.
Australia’s Energy Minister Angus Taylor, said in a statement on Monday that Australia was in talks with the U.S. to tap into its emergency fuel reserve, which contains tens of millions of barrels of oil stored underground.
Australia has enough crude and refined oil onshore to last 28 days each, and just 22 days of diesel, according to latest government data from May, although the supply has been augmented by subsequent procurements.
According to an International Energy Agency agreement, member states should have 90 days worth of fuel supply in stock.
“Access through a contractual arrangement will greatly boost our stocks and flexibility of supply, Taylor added.
According to him, it will take between 20 and 40 days for the crude oil to reach Australia.
He, however, did not say how much exactly the fuel would cost, except that it would be cheaper than creating a `physical’ reserve in Australia.
Taylor also said negotiations with the U.S. had started some time back.
“The discussion is still in its early stages, another minister said.
“The news about oil talks comes as Australia considers sending vessels to the Gulf amid escalating U.S.-Iran tension in the area.
“National Roads and Motorists’ Association, Australia’s largest auto lobby group, said it would definitely solve some of our low reserve problems.
“But it’s only one short-term solution, spokeswoman Bridget Ahern said, adding that it will take time for the oil to get over from the U.S. (dpa/NAN)
