WA oil refinery plan called 'dinosaur technology' amid clean energy push

The Australian federal government and the Western Australia government are jointly funding a A$4 million pre-feasibility study for a proposed new oil refinery located near Karratha in Western Australia. This initiative is intended to enhance the nation's energy resilience, particularly in the face of volatile diesel prices that have been exacerbated by global events such as the Iran war. The study will explore the viability of constructing a new facility to process crude oil.

Despite the government's investment in exploring this new refinery, the proposal has drawn criticism from energy experts. These experts have described the concept of a new oil refinery as 'dinosaur technology,' suggesting that such a project would be an outdated approach to energy production. They argue that a new refinery would likely necessitate government subsidies to operate profitably and would ultimately not succeed in improving Australia's fuel security. Furthermore, these critics point to the rapidly declining domestic crude oil production in Australia as a reason to avoid investing in fossil fuel infrastructure.

Instead of pursuing new oil refining capacity, the experts recommend that Australia focus its investments on green technology and renewable energy solutions. This perspective aligns with a broader global push towards clean energy and away from fossil fuels. The declining domestic crude oil production further complicates the rationale for building a new refinery, as the feedstock for such a facility may become increasingly scarce or expensive to source.

The pre-feasibility study is expected to provide a detailed assessment of the technical and economic aspects of the proposed refinery. The outcomes of this study will likely inform future decisions regarding the project's progression, including potential further investment or abandonment.