Climate Council Oil briefing note attached.
FOR IMMEDIATE RELEASE
TUESDAY 28 JULY, 2026
The government’s plan to spend $4 million on a pre-feasibility study for a new oil refinery in WA won’t shield Australians from rising costs and supply chaos from the Iran war that’s hitting drivers at the bowser.
A new oil refinery could only ever provide a drop in the ocean of Australia’s fuel needs. More than 90% of Australia’s conventional crude oil reserves have been extracted, and more than 95% of the oil refined here comes from overseas. For as long as Australia relies on petrol and diesel, we will be shackled to volatile overseas markets, leaving families exposed to the same price spikes and supply shocks.
Electrification is the better bet for energy security. Governments should be doubling-down on policies to drive the switch to electric trucks, cars, and machinery, powered by homegrown renewable energy that can’t be embargoed, blockaded or weaponised – putting Australians back in control of our energy needs.
Former Regional President of BP Australasia and Climate Councillor Greg Bourne said: "We can save taxpayers $4 million right now, because we don't need a feasibility study to know this doesn't stack up. Building a refinery makes no commercial sense, and that's why so many refineries have already closed.
“Building a new refinery would cost billions, take up to a decade to build, and require ongoing subsidies to run it. All this public money for no noticeable reduction in our reliance on imported oil.
"The real fix is needing less petrol and diesel in the first place, and that means electrification. Every electric car on our roads is fuel we never have to import or refine. That frees up supply, makes us more resilient to the next global oil shock, and cuts climate pollution at the same time.”
Climate Council CEO Amanda McKenzie said: “Right now, the world is on fire driven by pollution from coal, oil and gas that’s driving hundreds of thousands of Europeans from their homes. To suggest building an oil refinery at a time like this is reckless and out of touch.
“The energy crisis and the climate crisis have the same cause — our addiction to imported fossil fuels. The fastest way to fix both is with clean energy made in Australia, for Australians."
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