The Rise of Fuel in Australia

Rising fuel prices rose supply curve from P1, supply increased from the first quarter to the second quarter. Instead, demand is also affected by price increases. Demand decreases and moves along the curve. This is because consumers change purchasing behavior. This shows that there is a negative correlation between demand, demand and gasoline price. Figure 1 shows Australia's fuel demand.

In Australia domestically, fuel consumption is rapidly exceeding oil production, so importing fuel from the outside is the only way to meet fuel demand. In 2016 - 2005, Australia imported 5453.4 ML of fuel to the domestic market using 57,580.7 ML. Australia still produced 27,353.4 ML of fuel in the same period, but over the past 6 years fuel has fallen by more than 33% (Environmental Energy Department 2018). Last year, some defense experts questioned Australia's fuel safety issues. The tension in the South China Sea is a way Australia imports a large amount of fuel, which poses a danger to Australian supplies. Although no actual crisis has occurred, the conflict in Syria and the Middle East puts more pressure on fuel supply, causing the crisis that is happening now.

Today, the Australian energy system is still heavily dependent on fossil fuels. Approximately 80% to 90% of the electricity comes from fossil fuels containing a large amount of coal. In order to increase the proportion of renewable energy, Australia carried out Renewable Energy Target (RET) years ago. RET requires that by 2020, 23.5% of Australian electricity generation comes from renewable energy such as wind power and sunlight. I would like to accelerate the spread of renewable energy, but adding a business case to this investment is difficult. why? Wholesale electricity price is too low. This trend is the result of a shrinking demand. Over the past few years, we have seen many large and small manufacturing industries abroad, and the use of rooftop solar energy has increased significantly. Wholesale price is lower to compensate investment in renewable energy

Renewable energy is considered the future of Australian power generation. However, despite these remarks, it is still an abnormal cause of fossil fuel production support. As emphasized in the latest Australian energy update, renewable energy (hydropower, wind power, sunlight, biomass) accounts for 15% of electricity generation, most of it is 7% of hydroelectric power generation, wind power is 5 % 3% Given the total energy consumption in Australia, the proportion of renewable energy has declined to 6%, and oil, coal and natural gas account for 94%.