How long could Australia thrive if our oil supplies were cut?

Australia's Liquid Fuel Security

FUEL FOR THOUGHT: we are heavily dependent on imports of refined petroleum products and crude oil to meet our liquid fuel demand but Australia continues to adopt a “she’ll be right” approach to fuel security.

Australia is the world’s ninth-largest energy producer and there are many renewable and non-renewable energy resources in our country. Despite this, we are heavily dependent on imports of refined petroleum products and crude oil to meet our liquid fuel demand.

With such a spread-out population, Australia relies heavily on road transportation to move goods and services around. Our transport system is more than 95 per cent dependent on oil.

Did you know that if the oil stopped coming, goods and services could dry up in just over a week?

According to research carried out for our report, If Australia’s oil supply was cut:

  • dry goods could run out within nine days;
  • chilled and frozen goods could run out within seven days;
  • retail pharmacy supplies could run out within seven days;
  • hospital pharmacy supplies could run out within three days; and
  • fuel available to the public could run out within three days.

Australia needs to develop an alternative fuels industry – and only then, could we ween ourselves off our world oil dependency.

It doesn’t help that Sydney will have no refining capacity after 2014. The Clyde refinery closed last year and Kurnell will follow soon. If our supplies are cut off due to disruption to our shipping lanes, we would find ourselves in a crisis situation very quickly.

Australia continues to adopt a “she’ll be right” approach to fuel security, relying on global oil and fuel markets.

These markets have proven to be volatile with fluctuations of up to 60 cents per litre for unleaded fuel prices at the pump seen in the space of just six months. The reason for dramatic fluctuations can include conflict in the Middle East and natural disasters like Hurricane Katrina.

This report is another wake-up call for governments to get serious about developing an alternative fuels industry.

Are you concerned about Australia’s oil dependency? Would you like the Government to do more to develop our alternative fuel industry?

The NRMA’s Australia’s Liquid Fuel Security report can be downloaded at: http://www.mynrma.com.au/about/reports-and-submissions.htm.

Petrol grades currently available in NSW*

Company Fuel Name Research Octane Number – RON
Description
7 Eleven Unleaded 91 91 ULP – Unleaded Petrol
Premium unleaded 95 95 Premium
Premium unleaded 98 98 Ultra Premium
Unleaded E10 93-94 ULP +10% ethanol
Diesel N/A Diesel
BP Unleaded 91 91 ULP
Unleaded 95 95 Premium
BP Ultimate 98 Ultra Premium
e10 Unleaded 93-94 ULP +10% ethanol
Diesel N/A Diesel
Shell/Coles Unleaded 91 ULP
Premium 95 Premium
V-Power 98 Ultra Premium
Unleaded E10 93-94 ULP+10% ethanol
Diesel 10 N/A Diesel
Caltex/Woolworths Unleaded 91 ULP
Vortex 95 95 Premium
Vortex 98 98 Ultra Premium
E10 unleaded 93-94 ULP+10% ethanol
New Generation Diesel N/A Diesel + 2% biodiesel
Bio B5 N/A Diesel + 5% biodiesel
Bio B20 N/A Diesel + 20% biodiesel
E85 100+ ULP + up to 85% ethanol
United Petroleum Plus ULP 95 ULP+10% ethanol
Boost 98 98 Premium +10% ethanol
Premium 98 98 Ultra Premium
E85 (only available in Rozelle) 100+ ULP+ up to 85% ethanol
Diesel N/A Diesel
Liberty Unleaded 91 ULP
e10 Unleaded 93-94 ULP+10% ethanol
Premium unleaded 95 Premium

*not all available at all sites

Fuels – which should you use?

petrol pump

Which premium unleaded fuel do you find the most efficient and cost effective?

Motorists can be forgiven for being confused about the fuels available and what their car needs.  There are five types of petrol now available (standard unleaded, 95 premium, 98 ultra premium, E10 and E85) as well as Diesel and LPG.

This blog is the first in our series on fuels to help clear up the confusion about which fuels are the best to use. We begin with premium unleaded.

Premium Fuels – is there a benefit?

Petrol vehicles are designed for a specific octane fuel and normally do not benefit from using higher octane fuel.

If the manual says you can use more than one type of petrol or blend, you may get the advantage of reduced fuel consumption (but only if your vehicle’s engine automatically adjusts its parameters to take advantage of higher octane).  Conversely, you may be able to save money by using a lower octane fuel, if the manufacturer states the vehicle will run normally on it.

As a rule of thumb:

  • 95 premium can give around 4% lower fuel consumption than 91, assuming the engine computer adjusts to take advantage of the octane difference.
  • 98 might give 3% reduction over 95, again assuming the computer adjusts the engine parameters.

The overriding recommendation is to consult the owner’s manual for your vehicle and use fuel of the octane listed.  Some motorists report lower fuel consumption using higher octane fuel.  If you wish to check this for yourself, be sure to record your fuel consumption for at least 10 tanks before you make the change, so you have a good baseline.  Try and check your baseline under normal conditions – if you have an unusual country trip in the middle of your test period, for instance, it will result in atypical figures.  Conversely, if your driving is normally on highways, a week of city driving will bias your figures.  Then change to the higher octane fuel and do a check for the next 10 tank fills and compare the figures.  If the savings from any reduced fuel consumption are outweighed by the extra cost of the premium fuel, it is obviously not economically sensible to use the higher octane.

In our next blog, we’ll look at ethanol in petrol (E85 and E10).

Which premium unleaded fuel do you find the most efficient and cost effective?

Unleaded petrol now phased out in 2012

The NSW Government has recently extended the phase out date of standard unleaded petrol (ULP) to 30 June 2012 (previously 30 June 2011). This was in response to a possible shortage in supplies of ethanol. This means that ULP may remain available well into 2012.

Before using E10, vehicle owners must check if an ethanol blend is suitable for their vehicle – this information can be found in the owner’s manual, by contacting NRMA Motoring Advice and on the Federal Chamber of Automotive Industries website.

For cars that cannot use E10, premium-grade unleaded petrol without ethanol will continue to be available.

Our May 2010 blog post about unleaded petrol contained several comments that owners found their vehicle had much higher fuel consumption when using E10 compared with ULP.  If your vehicle is in good condition you should not experience much more than the theoretical 3% increase in fuel consumption.

However, if you try E10 and experience an unusually high impact on fuel consumption, here are some possible causes and things you can do about them:

  • Was there water in your fuel tank from earlier contaminated petrol?  If so, the E10 will take the water into solution and your car may run roughly until the first tank of E10 is used up.
  • Is your fuel filter clogged?  Ethanol is a powerful solvent and may loosen residues in your fuel system.  Try changing the fuel filter after the first couple of tanks of E10.
  • Is your ignition system in good condition?  A slightly misfiring spark plug may be exacerbated by E10 leading to a severe misfire and increase in fuel consumption.  If you feel your vehicle is running roughly, have your vehicle serviced if it has not been done recently.
  • Is there an engine check or warning light showing on your dash?  Your engine management system and fuel injection system need to be in good condition.  Modern vehicles are designed to monitor oxygen in the exhaust and should be able to adjust to E10.  However a malfunctioning oxygen sensor or other component may mean that your vehicle is not achieving this.  Have your vehicle serviced if it has not been done recently.

What has been your experience with using E10?  Does the extension of the phase-out date of ULP help you?

Unleaded to be phased out in 2011

Many motorists are still unaware that 91 RON unleaded petrol is to be phased out in NSW by 1 July 2011. Its place will be taken by the existing E10 ethanol blend.

In February 2007, the State Government made several commitments “to promote renewable biofuels in New South Wales.” Part of that commitment was to introduce an E10 mandate, which implies that all regular unleaded petrol sold in NSW from 1 July 2011 will contain 10% ethanol – specifically, from that date, “a primary wholesaler must not sell regular unleaded petrol unless the petrol is E10.”

Many service stations across the state are already not selling 91 RON. Before using E10, vehicle owners must check if an ethanol blend is suitable for their vehicle – this information can be found in the owner’s manual, by contacting NRMA Motoring Advice or on the Federal Chamber of Automotive Industries website.

For cars that cannot use E10, premium-grade unleaded petrol will continue to be available.

What are your thoughts on E10? Will you use E10 or switch to a premium-grade unleaded petrol?