australian oil refineries to close

[burnz]

http://theconversation.edu.au/securi...shut-down-5553

The looming closure of three Australian refineries will affect the security of liquid fuel supplies in Australia. This is particularly so if the government and the oil industry do not devise a joint strategy with which to respond to potential supply disruptions.
Last week, Caltex Australia has written down the value of its two oil refineries (Kurnell in NSW and Lytton in Queensland) by A$1.5 billion. Caltex announced that the results of an operational review due in six months could lead to refinery closures.
The closure may mark another milestone in the decline of Australia’s refining sector. Shell confirmed in July 2011 that it will shut down refining operations at Clyde and convert the Clyde Refinery and Gore Bay Terminal into a fuel import facility by mid-2013. ExxonMobil’s Port Stanvac refinery near Adelaide was mothballed in 2003. In 2009, the decision was made to close down the refinery.
If an ongoing Caltex review results in closure of the two refineries, the nation will be reduced to just four, half the number in 2003.
Caltex’s position also raises questions over the viability of the nation’s four other refineries. Analysts often tout ExxonMobil’s Altona refinery in Melbourne as a candidate for divestment.
There is consensus among industry analysts that it is extremely unlikely there will be any new major additions to Australia’s refining capacity. In fact, BP’s chief economist Christof Ruhl described the future of the local refining industry as “dire”.

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[Dr Smith]

They could always be "coerced" into a JV for a super refinery. We can't be left to imported-only petrol.

[Bossxr8]

Its a dangerous thing to do having no refineries here, if war broke out it could have serious implications.

Good thing Shell in Geelong is spending up big on a water recycling plant for its refinery, shows they don't plan on leaving.

Something like $10-30 million, can't remember the exact cost but its a fair chunk of cash.

[Jim Goose]

So does that mean ALL of our oil supplies will go overseas and come back to Australia at even higher inflated prices then the singapore price?

Lets all import everything...

[Kevaclone]

Originally Posted by Bossxr8

Its a dangerous thing to do having no refineries here, if war broke out it could have serious implications.

Good thing Shell in Geelong is spending up big on a water recycling plant for its refinery, shows they don't plan on leaving.

Something like $10-30 million, can't remember the exact cost but its a fair chunk of cash.

Don't bet on it. if closing down will save them $200 million over a few years, $30 Million wouldn't stop them. been in the industry for 25 years and seen many more millions spend on infrastructure only to have it pulled back out a couple of years later

[XD 351 Ute]

Originally Posted by Jim Goose

Lets all import everything...

Yep, we're officially the stupid country.

Ed

[phillyc]

Originally Posted by Jim Goose

So does that mean ALL of our oil supplies will go overseas and come back to Australia at even higher inflated prices then the singapore price?

Lets all import everything...

Yep. Lets export all of our coal and iron ore at a record $150/tonne. Then we can buy it back in cars which cost $15,000/tonne.

Hyundai boast about buying our resources and using it in their cars. It's in some of their advertisements!

Several years ago it was suggested we build two MASSIVE steel mills. One in QLD and the other in WA. Both could be powered by LNG. Build a national railway between them. Load up the train with iron ore in WA. Unload in QLD, load up with coal. Unload in WA. Repeat. That sort of stuff is nation building.

To not be able to refine oil in this country is just wrong. Stupidly wrong.

Really, I think it is becoming time to say just like Brazil, that if you want to import something into the country, then your firm also has to either export something to 1/x the amount or make 1/x amount locally.

[z80]

Electric cars will save us...

[jpd80]

This has been coming for a while as our refineries are old technology and can't compete with efficient new refineries in Asia.
The cost of updating them is hardly worth the effort and I'd expect the cahnes will happen pretty quickly.

[Road_Warrior]

Makes me wonder what BP will do with the Kwinana refinery seeing as it was built in 1950 or thereabouts. Not having the ability to refine oil is a major economic and security issue.

[music189]

those idiots in Canberra wouldnt even think of fuel security they are to busy looking after themselves to see the whole joint is going to pot.

God help Australia cause the Government wont

Its just another industry closing . they wont think past the next election let alone 5 to 10 years ahead

[Gobes32]

Does anyone else care about the amount of jobs leaving the country? It's really starting to worry me.......

[Carby]

Why on earth would companies spend up big on manufacturing in Australia when they have things like Carbon Tax to deal with?

Much cheaper and profitable to just import the stuff.

[mik]

Originally Posted by Carby

Why on earth would companies spend up big on manufacturing in Australia when they have things like Carbon Tax to deal with?

Much cheaper and profitable to just import the stuff.

that`s about the size of it mate, big companies can see the writing on the wall, i hope i`m wrong but i think, the the companies already closing/closed up shop are only a small section of what is going to go.

[Rockape]

This kind of thing makes me mad. What the hell is wrong with our leaders in this country ? Cant they see whats happening?

[Gobes32]

Originally Posted by Rockape

This kind of thing makes me mad. What the hell is wrong with our leaders in this country ? Cant they see whats happening?

Do they even care? If the government were to do a vote on the carbon tax, how many would vote yes? So if so many australians are against it, why even implement it????

[pottery beige]

Originally Posted by Gobes32

Do they even care? If the government were to do a vote on the carbon tax, how many would vote yes? So if so many australians are against it, why even implement it????

moving forward it is the right and responsible thing to do......

[MAD]

The only good thing I can see coming from this, is public access to fish from the huge pier into Westernport near Crib Point.

[prydey]

could the last one out turn off the lights please

[MAD]

If all the big companies leave Australia, we will become a country ruined by poverty.
Then they'll come back and employ us at cheaper rates.

[Ducati888]

The Mobil site at Altona has been for sale for about the last 5 years. Problem is the buyer would need to clean it up, so they haven't been able to offload it.

Shell in Geelong have threatened many times to go offshore, and have continually made deals with the Feds not to.

[TMC]

The first industrialised nation was the UK. It also became the worlds first de-industrialised nation. They import everything now and their economy is cactus. They probably didn't see that coming 60 years ago. Guess where Australia is heading.

[|||]

man i miss ampol that was a sweet company i always got my aussie fuel there except sometimes golden fleece when they were open

[DoreSlamR]

Originally Posted by phillyc

Several years ago it was suggested we build two MASSIVE steel mills. One in QLD and the other in WA. Both could be powered by LNG. Build a national railway between them. Load up the train with iron ore in WA. Unload in QLD, load up with coal. Unload in WA. Repeat. That sort of stuff is nation building.

To not be able to refine oil in this country is just wrong. Stupidly wrong.

Really, I think it is becoming time to say just like Brazil, that if you want to import something into the country, then your firm also has to either export something to 1/x the amount or make 1/x amount locally.

Mate as long as Australian workers want to be paid top dollar for their work...then things like steel mills, refineries, car manufacturers and the like will be sourced over seas to places where the labour is cheaper.

High Australian dollar doesn't help either.

[falconnut]

Whats stopping the Industry from building bigger, better and newer refinery's?

So much doom and gloom in this pub jeez.

[Gobes32]

Originally Posted by DoreSlamR

Mate as long as Australian workers want to be paid top dollar for their work...then things like steel mills, refineries, car manufacturers and the like will be sourced over seas to places where the labour is cheaper.

High Australian dollar doesn't help either.

What is a fair wage in your honest opinion? 50k? I agree that maybe there might need to be an attitude readjustment when it comes to wages.......

[pottery beige]

Originally Posted by DoreSlamR

Mate as long as Australian workers want to be paid top dollar for their work...then things like steel mills, refineries, car manufacturers and the like will be sourced over seas to places where the labour is cheaper.

High Australian dollar doesn't help either.

cost of living.. hard thing to keep up with.. screwed every time you move..

[DoreSlamR]

Look I understand there are many factors as to why we earn what we earn and it's great!

But, the fact remains though, if someone else is offering it cheaper, they'll get the business.

We just can't compete with the likes of Korea and China when it comes to labour.

Take Bluescope as a recent example.

[TMC]

What Australians earn is unsustainable and so is the cost of living. More and more manufacturing will go offshore and we'll import and import and import, and when the mining boom ends, reality will set in. Mining booms never last forever. China is stockpiling stuff so when we've run out they can sell back to us at inflated prices.

Eventually the financial and insurance sector will be the main employers, but as they actually don't produce anything except fear, they will provide nothing for a broke economy, and even they will go under.

Australia has been living in a house of cards for too long, but we all think it's made of bricks. It isn't.

[fte50]

Originally Posted by Jim Goose

So does that mean ALL of our oil supplies will go overseas and come back to Australia at even higher inflated prices then the singapore price?

Lets all import everything...

I 2nd that - like a political that might actually do something for manufacturing.