FUTURE OF SYNTHETIC LIQUID HYDROCARBONS IN AUSTRALIA

Abstract

Australia's currently known reserves of fossil fuel indicate that we have 250 years supply of black coal at current production rates, 400 years of brown coal, 170 years of natural gas, but only 16 years of crude oil (20 years if natural gas liquids figures are included). While we are presently supplying about 65% of our liquid hydrocarbon requirements, this will drop to about 10% by 1990 unless significant new discoveries are made. While it may be technically possible to replace the petroleum based industrial fuels with either coal or natural gas, there is no currently developed alternative for transport fuels. If Australia wishes to pursue the objective of energy self-sufficiency, then these transport fuels produced from indigenous crude, even with the maximum of secondary processing, will have to be supplemented with synthetic fuels made from coal, natural gas or L.P.G.

There is considerable activity world wide in perfecting the technology of coal liquefaction, but it seems certain that the process will be highly capital intensive and there will need to be some guaranteed minimum price for the products to protect the venture from fluctuations in the world price of natural crude oil.

Converting LPG to gasoline is technically feasible but whether it is sound from an economic standpoint or whether it is justified when considering conservation of energy is a matter for debate.

Natural gas can be converted to gasoline but again with a relatively low efficiency of energy conservation. However, it could be attractive where gas is available far in excess of conventional demands and can be supplied to the process at a reasonable price.