Queensland Premier David Crisafulli has thrown his support behind expanding domestic oil production, as a remote outback town positions itself as a potential solution to Australia’s fuel supply challenges.
Premier said, signalling a renewed push to strengthen Australia’s energy security,
“I want to see a time in this nation when we return to drilling, refining and storing our own fuel.”
At the centre of that ambition is Eromanga, a tiny community in the Quilpie Shire with fewer than 50 residents, now being touted as the “Kuwait of Australia” due to its untapped oil reserves.
Quilpie Shire Mayor Ben Hall told 7News that the region, which sits above the resource-rich Cooper Basin and the vast Lake Eyre Basin, has long been producing oil but is being constrained by current regulations.
“There is an incredibly strong argument for increasing production on site at Eromanga for local refining,” Hall said.
“At a time when global fuel markets remain volatile, it makes sense to maximise what we have onshore and close to where it’s needed.”
The Eromanga refinery, operating since 1986, currently produces about 635 barrels of oil a day but is running below capacity.
Hall argues that expanding production could help ease pressure on Australia’s fuel supply, particularly as global markets remain exposed to instability in the Middle East.
“For more than 40 years, this region has quietly delivered oil production without environmental incident,” he said.
“Our oil is so pure it is used primarily for underground mining due to its low emission.”
The push comes as oil from the Taroom Trough – Australia’s first new oilfield in decades – begins to come online, although only a handful of wells are currently operating.
Hall said the Cooper Basin, with hundreds of established wells and proven reserves, represents a far larger opportunity if restrictions are eased.
“Our region is bound by regulation that currently restricts any further oil being taken from the Cooper Basin,” he said, calling for a rethink of both state and federal policies.
The Queensland Government is also looking to expand refining capacity, including upgrades to the Lytton refinery to produce renewable diesel, as part of a broader strategy to reduce reliance on imported fuel.
Australia currently imports most of its fuel from overseas, leaving it vulnerable to global supply disruptions and price shocks.
For Eromanga, local leaders believe the opportunity is clear.
“We have been called the Kuwait of Australia,” Hall said. “And when you consider what we’re sitting on, that’s not overstating the oil reserves that can be safely accessed in our region.”
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