And the rout continues

Following Shell’s February decision to sell its Australian refinery as well as 870 petrol stations to Vitol for $2.9 billion, BP is now following suit, shutting down its Bulwer Island refinery in Brisbane with the loss of hundreds of jobs.

Andy Holmes, president of BP Australasia, told a press conference in Melbourne that “the refinery was being closed because the emergence of major export-based refineries in Asia operating on a lower cost base had “transformed the industry””.  What, not Peak Oil……?

Mr Holmes said he did not believe that today’s decision would affect Australia’s energy security.  After all, the refinery only processes 101,000 barrels of oil per day, according to the BP website……. and what’s 12% of Australia’s consumption got to do with reality?

According to BP, the sale was part of a global move away from “downstream operations”.  It also sold refineries in the United Kingdom and Europe.  I wrote just last month, 2014 was the year many pundits forecast would be the beginning of the long decline from civilisation…. and the rout is on.  Australian Workers Union Queensland secretary Ben Swan says the decision has come as a “horrible shock” to workers.  REALLY??  It’s no shock to me….  what’s wrong with these people?  They should really start reading my blog to get proper information…!

Wayne Swan (remember him?) apparently said “there is no “adequate” explanation for why the plant is suddenly non-viable, as the company says.”  I think I better send Wayne a copy of this post…

And the thinly veiled outrage continues with Griffith University’s Dr Vlado Vivoda, who specialises in researching energy security, says “Our supplies are essentially subject to the security of supply lines that bring petroleum products from international markets, particularly from Singapore, which we are becoming increasingly reliant on,” and further stating “An event at a particular refinery in Singapore could have significant ramifications on our refined petroleum product supplies in Australia.”  Dr Vivoda also said Australia’s oil refining sector is likely to keep dwindling….  well who’d a thunk?

“I think this is not the last of refinery closures either… I wouldn’t be surprised if some others closed, even [BP’s Perth refinery] Kwinana at some point”.  Hmm, well we agree on that one……

“It just doesn’t appear to be profitable for big oil companies to run refineries in Australia that are old, that are small in capacity compared to international refineries. It’s simply not a viable business.”

No it isn’t is it, not when we are fast running out of oil….  but where is the public told the truth?  Only here it seems….  An old mate of mine works at this refinery, even bought a swanky SUV as a tax deduction last year.  I warned him this would happen…..   naah, wouldn’t hear of it.  Nobody wants to know….