❓ A WA parliamentary question addresses the impact of the Apache Energy gas plant explosion on diesel fuel supplies, demand, and potential shortfalls, with the Minister outlining production figures, consumption, and assessment efforts.
AnsweredQoN 289Legislative Assembly
QuestionView source ↗
APACHE ENERGY GAS PLANT EXPLOSION — DIESEL FUEL SUPPLIES
I refer to the importance of diesel fuel as an alternative energy source for industry. (1) Will the minister advise the house of the daily diesel production in Western Australia? (2) What is the normal daily demand for diesel? (3) What is the projected increase in demand as a result of the Apache Energy gas plant explosion? (4) What is being done to cover the shortfall? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN
I refer to the importance of diesel fuel as an alternative energy source for industry. (1) Will the minister advise the house of the daily diesel production in Western Australia? (2) What is the normal daily demand for diesel? (3) What is the projected increase in demand as a result of the Apache Energy gas plant explosion? (4) What is being done to cover the shortfall? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN
AnswerView source ↗
I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
(1) Will the minister advise the house of the daily diesel production in Western Australia? (2) What is the normal daily demand for diesel? (3) What is the projected increase in demand as a result of the Apache Energy gas plant explosion? (4) What is being done to cover the shortfall? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
(2) What is the normal daily demand for diesel? (3) What is the projected increase in demand as a result of the Apache Energy gas plant explosion? (4) What is being done to cover the shortfall? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
(3) What is the projected increase in demand as a result of the Apache Energy gas plant explosion? (4) What is being done to cover the shortfall? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
(4) What is being done to cover the shortfall? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
The SPEAKER : Order, members! Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
(1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
(3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
(1) Will the minister advise the house of the daily diesel production in Western Australia? (2) What is the normal daily demand for diesel? (3) What is the projected increase in demand as a result of the Apache Energy gas plant explosion? (4) What is being done to cover the shortfall? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
(2) What is the normal daily demand for diesel? (3) What is the projected increase in demand as a result of the Apache Energy gas plant explosion? (4) What is being done to cover the shortfall? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
(3) What is the projected increase in demand as a result of the Apache Energy gas plant explosion? (4) What is being done to cover the shortfall? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
(4) What is being done to cover the shortfall? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
The SPEAKER : Order, members! Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
Mr F.M. LOGAN replied: I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
I thank the member for the question. (1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
(1)-(2) I am aware from BP, whose refinery produces diesel for a number of oil companies in Western Australia, that the daily production is 7.5 megalitres a day. The total consumption in Western Australia is approximately 10 megalitres a day and 80 per cent of the diesel consumed in Western Australia is produced at Kwinana, as I indicated—that is, the 7.5 megalitres. Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
Mr J.H.D. Day interjected. Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
Mr F.M. LOGAN : That is seven to eight megalitres. The remaining 20 per cent is imported primarily from Singapore. (3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
(3)-(4) Demand is being assessed right now by the gas supply coordinating committee. For example, Alcoa advised me that it could consume anywhere up to about 1.5 megalitres a day if it were to shift a significant proportion of its operations to diesel. I am aware that Alcoa is still getting gas. We need to aggregate all the demand that is out there at the moment. I can tell the member for Darling Range that there still seems to be a significant amount of hesitation in the marketplace about what businesses are deciding to do — Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
Dr G.G. Jacobs : The hesitation comes from you. Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
Mr F.M. LOGAN : — namely, whether to place an order for diesel or to reduce their production. Firm orders are not coming in at present because businesses are assessing the cheapest option for them. Each business is going through its own assessment of what is the cheapest option. Does a business keep production going at the rate it is producing and burn diesel or does it reduce production and lay people off? Businesses are making those decisions now. As a result, those firm orders are not coming through, although BP and, I believe Caltex, are ordering further shipments of diesel.
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