Is 'drill baby drill' the answer to our fuel crisis?

This episode of ABC News Daily examines Australia's growing vulnerability to fuel supply disruptions, sparked by the recent fire at the Geelong refinery and the closure of multiple domestic oil refineries over the past decade. Host Sam Hawley speaks with Alison Reeve from the Grattan Institute, who explains how Australia went from being nearly self-sufficient in petrol and diesel—producing 98% of its needs with eight refineries—to relying on just two, both dependent on imported crude oil. The closures were driven by aging infrastructure and the economic inefficiency of smaller refineries compared to massive Asian facilities. Despite Donald Trump’s 'Drill Baby Drill' rhetoric, Reeve argues that Australia’s proven oil reserves amount to only about two years of fuel, and new exploration is unlikely to yield enough to justify rebuilding a domestic refining industry. Instead, she advocates for a strategic focus on electrification and renewable fuels as more secure, cost-effective, and sustainable alternatives. The discussion also covers fuel stockpiles, the cost of maintaining reserves, and the uneven accessibility of electric vehicles, emphasizing that true energy security lies not in drilling, but in diversifying and strengthening resilient systems. The episode concludes with a clear takeaway: the goal isn’t to produce more petrol, but to ensure reliable, affordable, and low-risk mobility. While stockpiles and imports provide short-term buffers, long-term security comes from reducing dependence on volatile global oil markets through electrification and renewable fuels. The conversation underscores that energy policy must be evaluated not by ideology, but by cost, resilience, and equity. Australia’s path forward, according to Reeve, is not more drilling, but smarter investment in clean, domestic alternatives that protect consumers and the planet.