Caltex’s magazine for employees, franchisees & resellers
Issue 47 Feb – Mar 09
Caltex's View
The Carbon Pollution Reduction Scheme: the challenges ahead
An illustrator’s view of the key themes in this month’s cover story.
Caltex's view – The Carbon Pollution Reduction Scheme: the challenges ahead
Countless thousands of words have been written about the Federal Government’s keenly anticipated Carbon Pollution Reduction Scheme (CPRS) White Paper, released in December 2008. In an interview with The Star, Managing Director and CEO Des King discusses the company’s key concerns.
Refinery energy study evaluates potential savings
A Caltex refinery never sleeps. It works day and night to produce the transport fuels on which Australia depends to keep its economy moving.
Remembering Alex Strang
When Alex Strang died in December after a short illness colleagues and friends at Caltex, Chevron and many other organisations were deeply saddened. It’s not surprising, because Alex was an influential and integral part of Caltex for over 36 years.
Reseller revamp to serve country customers better
A major restructuring of the Caltex Petroleum Services business is allowing us to deliver better, faster service to regional and rural clients.
Alternative transport fuels – where to from here?
In this edited extract from a recent speech to the Academy of Technological Sciences and Engineering (ATSE) in Melbourne, Caltex CEO Des King identifies challenges and outlines his vision.
From the Managing Director
As we‘ve stated for the public record, Caltex supports a carbon-trading system. We believe it is the best way for governments to address the problems associated with climate change provided international consensus on emissions targets can be reached.
However Caltex has serious concerns about the government’s proposed Carbon Pollution Reduction Scheme which is due to become law in July next year. The most serious relates to the proposal that petroleum refiners, as part of an emissions-intensive, trade-exposed (EITE) industry, will get only 60 per cent of their carbon-trading permits free.
We estimate the additional resulting burden on our two refineries to be between $25 million and $40 million a year.
Not only will it affect our bottom line, it will provide a competitive advantage for refiners in other countries, like Singapore and India, which will bear no carbon costs and whose products compete directly with ours. Clearly refineries should be allocated 100 per cent of their permits free until such time as our competitors face similar costs.
Another area of concern for us relates to reducing the excise on fuel for three years to protect drivers from the higher fuel costs (up to 10 cents per litre on petrol) resulting from the scheme. This will do nothing to change motorists’ driving behaviour or reduce fuel use. It will therefore have no environmental benefit.
To put things in context, transport produces about 14 per cent of Australia’s greenhouse emissions. Emissions from customers’ vehicles and equipment using Caltex’s petroleum products are 20 times greater than from our refineries.
These and other pressing matters discussed in this issue of The Star must be urgently addressed by the Federal Government which, we believe, should be placing greater emphasis on new vehicle technologies.
Australia needs security of supply for its petroleum products. Refineries must maintain their ability to continue running safely and reliably. Our industry is a cornerstone of the nation’s economy. We deserve nothing less.
Des King