Saudi pipeline attack sparks Australian refinery plans

0:00Sadi Arabia has shut down a crucial oil pipeline following repeated drone attacks from Iranian-backed militias. Energy Minister Chris Bowen says the update is disturbing, warning the oil crisis is getting worse. As a leading energy analyst says there's a strong chance Australia will build its first oil refinery in more than half a century. Global light pictures show smoke near Saudi Arabia's east-west oil pipeline that bypasses the straight-of-war moves, temporarily shut down as attacks intensify in the Middle East, driving up global oil prices. Disturbing scenes over the last 48 hours in the Middle East, the situation is getting worse. Today's petrol, diesel and jet fuel numbers place Australia at the bottom of a list of modern economies. We have the lowest stocks in fact with the only ones who have stock levels that don't

1:00meet the 90 day thresholds. Six weeks ago the Federal and Western Australian government announced an initial study into construction of a large-scale petrol refinery. It would be the first built in Australia since the 1960s, two decades ago Australia had eight oil refineries. Now just two, Queensland's Amphol refinery and Victoria's Viva Energy Plant. But I think there's a very real chance that Australia builds a new refinery. The intractable Iran war has abruptly changed Australia's oil equation, choking oil exports through the straight-of-war moves and onto the Asian refineries Australia relies on. The Seoul Cabinet tells seven news podcasts the issue, fuel supply is now viewed more as a matter of national security. The risk and conflict scenarios ahead of us are different, they're elevated now, there's

2:00now strong national security reasons to have sovereign supply chains, particularly in fuels. As well he argues the straight-of-war moves will never operate as it did before, the American Israeli strikes on Iran in late February. There is noise unscramble of this egg. And it all helps make a case that would have been far harder to argue before the war. Tim Leicester, seven news. For more of Tim Leicester's interview with Seoul Cabinet you can tune into the issue podcast on Lisner 7 Plus or YouTube.