Thanks to COVID-19 shutdowns and a world oversupply crashing crude oil prices, we were able to buy $94m of crude oil last week, equivalent to about five days of needs, and its being stored in the USA because we don't have the storage capacity.
So, let's build storage capacity on public land, maybe military bases. Call it a national security storage. Disperse it around several locations for security reasons, with access to our refineries, so it could quickly be turned into petrol, diesel and other fuels.
And let's put in place an annual program to expand the store to the recommended international standard of 90 days.
After all, aren't we serious about national security? Have we considered what would happen if we ran out of fuel and the trucks and trains stopped? Mass starvation.
Wouldn't this be a better use of our money than some other things we spend money on? I can think of one program, currently falsely justified on national security grounds, that could be scrapped and save $1b a year.
A billion dollars a year for several years would build a lot of fuel storage.
What do you think?
Analysis: There's a simple lesson in economics we can learn from Australia's $94m crude oil purchase
Australian Government's $94 million crude oil purchase offers a simple economics lesson - ABC News (Australian Broadcasting Corporation)


 
						
					 
					
					 Originally Posted by Pickles2
 Originally Posted by Pickles2
					
 
				
				
				
				
			 
						
					
 
						
					 
						
					 
			
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