Grumpy old buggers thread

Terminal Gate Prices | Australian Institute of Petroleum

TGP is, as described in the name, the price at the gate, excluding transport and any discounts.
Prices can be manipulated by various means, including delaying delivery, prior to an impending price increase.

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Originally Posted by sharmy

We export about the same amount of crude that we import back as fuel. Of cause it all doesn't make petrol and diesel. about 80% of imports are diesel obviously for transport and mining. Bob Hawkes parity pricing didn't help as it sent local crude up in price as well as retail prices. You may remember the so called pay off that no one would pay more than 1 cent a litre extra in country areas.

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The point is that Australian oil production is far less than the amount of oil Australia produces. Fifty years ago Australia was self sufficient in oil, and refined virtually all of it onshore. Since then demand for oil in Australia has increased, mainly due to population growth, but also due to much rail transport being replaced by road and air transport, far outweighing improvements in fuel economy, and improvements like B-doubles. And also Australians are far more mobile than they were fifty years ago, and much less likely to use public transport.

At the same time, production has decreased from the depletion of the giant fields discovered in the 1960s and 1970s. New discoveries to replace these have been relatively small, and oil exploration in Australia has dropped to almost nothing, thanks to both poor results and community opposition and sovereign risk.

Meanwhile, the economics of existing refineries has become problematic, mainly because of the competition from more modern, much larger refineries such as those in Singapore, and the impossibility of enlarging the existing Australian refineries because they are now in a built up area that has grown up around them since they were built up to a hundred years ago.

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Originally Posted by Tombie

Every time I’ve been up there fuels been cheaper than below the border.

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You are also welcome in Melbourne anytime.

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Originally Posted by JDNSW

Since most of Australia's fuel supply come from crude traded on the world market .....

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That's the kicker. We pay world parity, regardless of where the stuff come from. If ( when ) Alberta leaves Canada that may well change. I don't mean we will cease to pay parity, I mean that the ME may no longer be the arbiter.

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Originally Posted by JDNSW

but also due to much rail transport being replaced by road and air transport,

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Trouble here is that the trains don't go where the freight is needed, and freight is often too time sensitive to be parked in a siding somewhere. And even if our antique rail system was brought into the current century, which would require a leap of about 150 years, the issues remain the same. Aus is far too scattered, and nobody wants train tracks in their main street. A sight not uncommon in the US, where road freight is king. Mobs like SCT can make intercapital rail freight work, on a small scale, but still rely heavily on trucks.