Australia's proposed Karratha oil refinery: A fossil fuel subsidy disguised as fuel security

Australian governments are funding a $4 million pre-feasibility study for a new oil refinery in Karratha, Western Australia, the first in over 50 years. The article argues this is not energy security but a fossil fuel company receiving public money to expand production while using carbon offsets to cover emissions. Australia's domestic oil reserves would meet demand for less than seven months, and any refinery would rely on imported crude from conflict-prone regions. The piece highlights how the Safeguard Mechanism allows polluters to buy Australian Carbon Credit Units (ACCUs) to offset emissions, with some credits potentially coming from controversial sources like the Great Koala National Park. Meanwhile, households are rapidly adopting electric vehicles, with EVs and plug-in hybrids reaching 35.8% of new car sales in June. The article contrasts this with the mining industry's continued diesel dependence and delayed electrification plans. Fossil fuel subsidies in Australia reached $16.3 billion in 2025-26, growing faster than the NDIS. The article argues these funds would be better spent on actual decarbonization, noting that renewables supplied a record 46.5% of generation in the National Electricity Market in early 2026, with battery storage tripling its role.