Australia has asked the United States to help bridge a gap in its crude oil reserves. According to Energy Minister Angus Taylor, Canberra has proposed a contractual arrangement that would allow it to access the U.S. Strategic Petroleum Reserve (SPR).
Under its agreement with the International Energy Agency (IEA), Australia is supposed to maintain a 90-day reserve supply of crude. Currently, though, it only has enough to cover 28 days worth of consumption.
Australian Prime Minister Scott Morrison is keen to close this gap, but his administration fears that building up domestic reserves will be too expensive. Taylor alluded to these concerns on August 6, saying that a deal with the U.S. would allow Australia to create a remote reserve at a relatively low cost.