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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