This Report contains the Committee’s review of one treaty action:
Agreement between the Government of Australia and the Government of the Kingdom of the Netherlands concerning Oil Stocks Contracts (Canberra, 13 June 2018).
The treaty action will assist Australia to return to compliance with its obligation as a member of the International Energy Agency (IEA). The IEA was established in 1974 and Australia has been a member since 1979. As a member of the IEA, Australia is a party to the Agreement on an International Energy Program (IEP Treaty). Under the IEP Treaty, Australia has an obligation to sustain national consumption for at least 90 days with no net oil imports (the 90-day obligation). Australia has been non-compliant with the 90-day obligation since 2012.
This treaty action is concerned with addressing Australia’s non-compliance with its requirements under the IEP Treaty and is aimed at meeting Australia’s international obligations.
The Committee therefore notes that consideration of Australia’s physical oil stocks is outside the scope of its inquiry into this treaty action. However, the Committee acknowledges that the two issues are interrelated. The Committee supports the current review that the Australian Government is undertaking into Australia’s liquid fuel security and urges the Government to fully explore the links as it assesses the adequacy, reliability and affordability of Australia’s physical oil stocks.
The Committee supports the Agreement and recommends that binding treaty action be taken.