FOR IMMEDIATE RELEASE 14 MAY, 2026
The Federal Coalition’s Budget reply looks set to push an out-of-touch fossil fuel fantasy, drilling oil wells that are 90 per cent dry and leaving Australians left holding the empty jerry can.
Analysis shows the Coalition focus on fast tracking oil and gas projects, more drilling and new refineries ignores physical and economic realities:
- With 90 percent of Australia’s conventional crude oil already extracted, what little remains would only meet national fuel needs for less than a year.
- Even if we did fast track oil and gas projects, they couldn’t add to our supplies until the 2030s.
The push for fossil fuels is out of touch with what Australians want, with YouGov polling showing most people want the government to invest in expanding renewable energy solutions over fossil fuels, and support household measures to electrify homes and transport.
Climate Council CEO Amanda McKenzie said:
"The Coalition’s Budget Reply is a fossil fuel fantasy—it's so out of touch, they’re still trying to drill for oil in a well that’s nearly dry. The dregs can’t fuel Australia, the Coalition would have us tied to foreign oil indefinitely.
"If we want fewer price spikes, fewer supply shocks, and less climate pollution, we must expand homegrown clean energy solutions that put us back in control. Electrifying homes and transport puts Australians back in the driver’s seat, which is exactly why millions of households are already turning to rooftop solar, batteries and electric vehicles to protect themselves."
Climate Council Councillor and independent economist Nicki Hutley said:
“The Coalition’s proposals would prop up a polluting industry, but do absolutely nothing to help households already struggling with bills and energy insecurity. Australians are calling for true energy security, with solutions that shield them from global chaos, not keep them chained to it.
“Electric vehicle and hybrid drivers saved more than $50 million in fuel price spikes in March and $62 million in April. People don’t want or need the Opposition’s one-track obsession with fossil fuel handouts. They want support to expand renewable energy solutions to electrify their homes and transport.”
Fact-checking the fossil fuel fantasy
Myth 1: Australia can “dig and drill” our way out of this crisis.
The reality: 90 percent of Australia's conventional crude is already gone, and remaining viable reserves wouldn't meet national needs for even a single year. Dregs won’t save us.
Myth 2: We need to refine more fuel locally to protect Australians from rising prices and energy insecurity.
The reality: New refineries would take a decade to build and still rely on imported oil, leaving us at the mercy of global markets.
Myth 3: We need more gas supply to bring prices down.
The reality: With 80 percent of our gas exported, domestic prices are anchored to global markets. We already have plenty of gas in Australia – and producing more gas doesn't break that link.
ENDS
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