For a government sponsored institute providing "fresh ideas," ASPI seems stuck in a "business as usual" rut, looking at the immediate bottom line versus the long-term picture.
As for establishing an oil strategic reserve, the rising tensions in the Middle East over Iran's nuclear programs could change the dynamics of Persian Gulf oil exports to East Asia long before strategic reserves could be established.
Australia does indeed have significant reserves of coal as well as access to natural gas, including the offshore Sunrise natural gas field, shared with Timor Leste and estimated to contain 5.1 trillion cubic feet of liquefied natural gas and 226 million barrels of condensate, the largest petroleum resource in the Timor Sea. Development of the field with Timor Leste has been blocked by disputes with the Timorese government for the last nine years.
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Charming as the idea of boring holes in the ground and pumping Middle Eastern oil down them for a rainy day, would it not be in Australia's interest to negotiate fairly with Timor Leste over the Sunrise field? Even if solar power gives Canberra sticker shock, it seems preferable to make local arrangements for more environmentally friendly fuels such as natural gas rather than continuing to import hydrocarbons from the Middle East or burning local coal. Best then, at the end of the day, it's an economic issue, with quality of life considerations coming second.
But if Canberra has to give its energy import policies hostage to fortune, Timor Leste is a lot closer than the Persian Gulf.
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