Remarks as Prepared for Secretary Brouillette
Virtual SPR Lease Signing with Angus Taylor, Australian Minister for Energy and Emissions Reduction
8th Floor Program Review Center
Forrestal Building
Tuesday, June 2nd, 2020
Thank you.
Minister Taylor, it’s a pleasure and honor to join you today; though I’m sorry we cannot be together in person as we were in March.
As we discussed recently, much has changed since those days, and we’ve again learned the importance of energy security, and even more, of the importance of true friends and trusted allies.
Australia could not be a better mate.
Our two countries have fought together in every significant conflict since the First World War, and we’ve continued to stand together in more recent crises such as 9/11 and the response to COVID-19.
The Agreement we’re about to execute will deepen that relationship, while advancing the strategic interests of our two nations and strengthening global energy stability and security.
Working together for over a year, our teams have developed this first-of-a-kind agreement that is a Win-Win for both countries and satisfies requirements of the International Energy Agency (IEA).
Although this is our first crude oil storage lease agreement, we have successfully operated the Strategic Petroleum Reserve (SPR) for over 40 years. The SPR is a safe and secure reserve with a proven record for supplying oil in a time of need. Our team is one of the most professional organizations in this field and will assist you with each step of our processes.
Minster Taylor, last year a team of yours visited our Big Hill Strategic Petroleum Reserve facility in Texas, and I want you to know, that you are welcome to join me there any time.
For you, our friends and mates, this is a great arrangement.
It supports your liquid fuel strategy allowing you to quickly make progress on your sovereign energy goals. As a bonus, it allows you to benefit from currently low oil prices, at a time when storage space is in high demand.
Importantly, as a member of the International Energy Agency (IEA), stocks owned by the Commonwealth of Australia and stored in the SPR will be credited toward the emergency reserve commitment of Australia under the Agreement on an International Energy Program (IEP Agreement), which underlies the IEA.
The IEP Agreement and the oil stockpiling requirements of IEA members place IEA in a strong position to coordinate collective actions that serve as a bulwark against supply disruptions, whether natural or manmade. The mere mention of this program after the September 2019 attacks against the Abqaiq (Ab Ka-iq) and Khurais (Kh-race) oil facilities in Saudi Arabia helped to calm global energy markets.
This Agreement today will strengthen global energy security and supports Australia’s contribution to an IEA collective action in the event of a supply disruption.
In that regard, it is a win not only for the United States and for Australia, but the entire IEA membership.
We are thankful that you chose to be the first country to demonstrate the benefits of leasing storage space in the United States SPR. Oil producers will also be thankful for these purchases during a time of oversupply and imbalance.
Most of all, this Agreement is a lasting sign of the U.S.-Australian partnership in energy security, of our stalwart alliance in times of conflict and crisis, and of a friendship that will extend for decades, even centuries, to come.
Thank you.