THE IOR Refinery near the outback settlment of Eromanga, is the petroleum refinery most Australians have not heard of. Recent news reports around the fuel crisis refer to Australia’s two remaining refineries in Geelong, Victoria, and Brisbane, but Eromanga rates no mention.
IOR is the small, family-owned integrated supplier of fuels to regional, rural and remote Australia that has kept wheels rolling in the outback during floods and the fuel crisis. Part of the reason few Australians have heard of it, is because it is 1000km west of Brisbane.
Eromanga is a tiny town of 95 people, with about 24 houses and a local tourist attraction, the Eromanga Natural History Museum featuring dinosaur bones. There’s also a state school and a police station.
The small-scale IOR refinery produces 1250 barrels (198,000 litres) a day of locally produced crude oil, refined into high-quality diesel fuels, heating oils and kerosene, as well as variety of speciality petroleum products for industrial uses.
Users of Queensland outback roads will however, be more aware of IOR’s substantial network of automated, unmanned fuel stations across a large part of the state.
IOR’s output is only about 100th of Viva Energy’s Geelong refinery, which processes 120,000 barrels of oil daily, or approximately 6.9 billion litres output annually. Queensland’s Lytton Refinery, owned by Caltex, puts out 6.5 billion litres annually.
But the fire at the Geelong refinery last week has highlighted the fragility of Australia’s home-based petroleum supply. Cairns News believes more refineries like IOR would not only be a backstop for critical rural and regional transport, but an economic boon for other small outback towns struggling to survive.
Western Queensland is dotted with remote small towns such as Quilpie, Windorah and Boulia that struggle for economic survival due to small populations.
Quilpie, 106km to the east of Eromanga, with a population of 525, is an example of the difficulties faced by the outback. In 2021 the Shire of Quilpie began its “free land” scheme under which homebuyers could purchase plots of land, build a house and be refunded the cost of the land after they lived in the property for six months.
However by 2024, not one new house had been constructed in the estate, mainly because of the high cost of building in the far west of the state. An expanded western and central Queensland oil industry could make the difference for these towns.
The IOR Refinery operators, managing director Stewart Morland and executive director Ross Mackenzie, have indicated they are willing to expand their operation, which obviously has a long way to go to come near just half the output of either of the two remaining Australian refineries.
However if more resources are proven up, what’s to stop investors expanding the Eromanga operation or duplicating it somewhere else in Western Queensland on a larger scale.
Gladstone has been named by the State Government as the possible site of a major refinery that would cost an estimated $11 billion to build.
Member for Traeger Robbie Katter has welcomed the push for a domestic oil industry but says the government has failed to act on a gas reserve policy and biofuel, which should be a major part of such an industry.
He says Liberal and Labor have also been the cheer squad for the free-market globalists, telling local fuel suppliers to buy it overseas if it’s cheaper.
The major blockage to rapid future development of Queensland’s oil resources is bureaucracy, and green bureaucracy in particular, which is why One Nation MP Barnaby Joyce wants the Department of Climate Change, Energy, the Environment and Water, scrapped, along with its climate laws and oil drilling restrictions.
Joyce’s call was prompted by the recent fire at the Geelong refinery. The facility supplies about 10 percent of national fuel demand, and its partial shutdown has left onshore reserves at 30 to 39 days – far below the 90-day international standard.
Joyce says these policies have weakened refining and production, as the government responds with a new National Fuel Security Plan and imported diesel.
From its humble beginnings in 1984 as a small oil refinery the IOR operators say they have developed a strong connection to the heartbeat of regional Australia and people from the bush to the beach.
“We’re passionate about making sure our hard working customers can fuel up their equipment, fleet, and aircraft so they can keep going – and use our technology to reduce administration costs so they can keep growing,” the company’s website says.
“Our approach is built on community and having the integrity to do the right thing. We are determined to push the bar, innovate, and continue to help, develop and grow Australian communities.”
IOR is expanding its distribution footprint. “Whether you’re looking to fuel up your transport fleet at one of our 24/7 diesel stops, organise bulk fuels to be stored on your property, on site at a project, or access our aviation network, IOR’s got your back,” the company says.
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