(David Wu’s post from the NEWS.COM.AU on 09 April 2026.)
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| No gas at the Aussie servos! |
A
remote Queensland basin could be the answer to our oil supply problems – but
environmental laws are preventing it from being fast-tracked. Experts believe a
trough in remote Queensland, roughly the size of Singapore, could have enough
oil to eliminate Australia’s heavy reliance on crude imports.
The
country’s dependence on petrol and diesel imports from our Asian neighbours has
been exposed by the Middle East war, with bowsers running empty nationwide.
Supply is still a major talking point, with Prime Minister Anthony Albanese
trying to reassure Australians stock levels currently in and arriving to the
country remain strong.
But Queensland Premier David Crisafulli has argued Mr Albanese only needs to look domestically in the Sunshine State’s backyard for Australia’s own future oil source.
‘Liquid gold’
Taroom
Trough, about 750 square kilometres in size, located in the Bowen Basin and
roughly four hours west of Brisbane, has a “sea of oil” that could potentially
supply up to one quarter of the country’s needs and protect the nation from
future global oil supply issues.
The Taroom Trough, about the size of Singapore, could potentially supply one quarter of Australia’s needs. Shell is already drilling and makes 200 barrels of “high-quality” crude oil a day at the trough. It is being refined at iOR’s Eromanga refinery and produced into diesel.
Elixir
Energy, which owns an interest in the trough, estimates the acreage held by
Shell alone holds three trillion cubic feet of gas and 256 million barrels of
light oil and condensates. Beach Energy and Omega Oil and Gas are also
exploring the area after being awarded land, with the latter to begin a $50
million drilling campaign in June.
Exactly
how much can be extracted is not exactly known, but the Queensland government
has recognised the potential and on Wednesday announced it will support the
streamline of roads and trunk infrastructure in “the development of Australia’s
first oilfield in 50 years”.
Mr
Crisafulli, who visited the Shell site at Taroom, urged the Commonwealth to
accelerate environmental approvals on extracting oil to speed up the project’s
development. “This is an opportunity to deliver liquid gold, and we have no
intention of wasting it,” he told reporters on Wednesday.
“What
a golden opportunity in this country to get back to a time when we are prepared
to drill, and refine and store our own fuel.” The Premier’s efforts have been
backed up by experts in the industry.
Australian Energy Producers CEO Samantha McCulloch said the trough is highly promising and may “play a major role” in the country’s energy future. “The Taroom Trough is an exciting opportunity for Queensland and Australia – a significant oil resource that could bolster our fuel security and help to reduce reliance on imports,” she said.
But the problem is that Labor and the Greens struck a last-minute deal in 2025 that excluded fossil fuel projects from being fast-tracked under the revamped Environment Protection and Biodiversity Conservation Act (EPBC). Mr Crisafulli is arguing the oil project should be exempt, as it is of “national interest”.
But
critics say delayed government approval could spiral the nation into a deeper
fuel crisis amid the Iran conflict, especially if our Asian allies, who
previously pledged to continue supplying Australia with fuel, cut back on
exports to protect their own domestic supplies.
Ms
McCulloch said faster and more efficient approvals will be critical to
unlocking the trough and other similar basins. “We need all levels of
government working together to fix the approvals system. Carving oil and gas
projects out of streamlined reforms under the EPBC was a missed opportunity,
and it makes even less sense now given the impacts of the global energy crisis,”
she said.
“Australia
has substantial undeveloped oil resources, and developing them is key to
strengthening fuel security, supporting regional jobs and helping shield
Australians from future global energy shocks.”
If
denied an exemption, Taroom could be delayed by up to four years, which is how
long Westside Corporation and Senex Energy had to wait for their gas projects
to be approved. Nationals leader Matt Canavan joined the chorus of calls,
claiming the federal government is “locking up most of” Australia’s energy
abundance.
Government responds
The
Albanese government has responded, with key Labor ministers saying they are
open to any idea that boosts domestic fuel supply. Resources Minister Madeleine
King stressed projects would need to be carefully assessed to ensure they meet
environmental laws.
“That
order and thoughtfulness around approvals is really important so that the
community can have confidence that when we do drill for oil or for gas, we make
it safe for the community and the environment,” Ms King told the ABC. “If it’s
commercially viable, it’s environmentally viable and it meets other
requirements, then this government, of course, will support it.”
Environment
Minister Murray Watt said he had not seen any proposal from the Queensland
government, but was open to building Australia’s sovereign capability. “We know
from the experts that even if an oilfield like this was approved, you’re
probably talking up to 10 years before it would start producing oil at any kind
of commercial level,” he told Sky News on Wednesday.
“But
again, we’re open to those ideas. We just need the Queensland Government to put
something forward.” In another interview, Mr Watt suggested Mr Crisafulli
should be more “focused on how to help people with cost and supply of fuel now”
rather than in a decade’s time.
Albo’s big move: Begging Singapore for More Diesel
Mr
Albanese will this week meet his Singaporean counterpart, Lawrence Wong, to
further shore up future fuel stocks during a two-day visit. Singapore’s exports
make up 26 per cent of Australia’s total refined fuel stockpile.
Of
this, it provides 55 per cent of the nation’s petrol, 22 per cent of its jet
fuel and 15 per cent of its diesel. In return, Australia is Singapore’s
second-largest supplier of liquefied natural gas (LNG) and provides the
Indo-Pacific country with 32 per cent of its supply.
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| More Diesel Please: Albo begging in Singapore? |
While Qatar is Singapore’s biggest gas supplier, prices have soared after a Qatari gas facility was extensively damaged by Iranian missiles in late March. It has subsequently increased global demand for Australian LNG.
Friday’s
meeting between Mr Albanese and Mr Wong will build on the existing deal signed
in March, where both countries committed to maintaining trade flows and to
consult each other over any disruptions impacting energy trade.
Part
of that deal also included addressing import and export restrictions and it is
understood these settings, in the context of a constricted market, will be on
the upcoming meeting’s agenda. The joint talks will follow Mr Albanese’s visit
to Jurong Island, a 3000-hectare offshore island near Singapore’s CBD that is
home to the country’s three main refineries, alongside more than 100 global
companies involved in the oil or petrochemical trade.
The
island’s enormous refining infrastructure allows it to process more than
800,000 barrels per day. Despite having no domestic crude oil reserves,
Singapore’s refining output has drawn keen trade interest from its Asian
neighbours and Europe.
