Australia announced, just today, that it intends to take advantage of the historic decline in oil prices to build a strategic stock of black gold, to be based in the United States.
With the closing measures taken by the authorities around the world to reduce the spread of the "Covid 19" epidemic, the global demand for oil declined and prices collapsed in an unprecedented way.
Australian Energy Minister Angus Taylor said the current conditions are appropriate for action, according to Agence France-Presse.
Australia has long had one of the lowest levels of oil stocks for emergencies among developed countries, making it more fragile especially during tensions in some strategic areas.
Taylor announced that his country would allocate 94 million Australian dollars to start building oil reserves on American soil. He said, "It is a unique occasion to start building an oil reserve because prices are historically low." He continued, "The time to act is now. We'll go with the inventory that we can access and that is in the United States. ”
The two allies signed an agreement in early March authorizing Australia to rent space in US oil stocks that it could use in emergencies.
Taylor explained that the oil stocks of his country are already saturated. However, the government began negotiations with the Australian industrial sector to be able to develop the country's storage capacity.
He explained, "If there is a global mess that slows the fuel supply, we will be able to access the fuel needed to run our country."
The agreement enables Australia to begin complying with the International Energy Agency regulations, which recommend to its members that they maintain accessible oil stocks in an emergency, sufficient for at least 90 days.
According to Taylor, Australia has 20 to 30 days to supply consumers on Australian land, but this level fluctuates.