1
00:00:01,560 --> 00:00:04,920
Speaker 1: The only drive show you can trust to ask the questions,

2
00:00:05,080 --> 00:00:09,520
Speaker 1: you get the answers, find a fag and give the analysis.

3
00:00:09,840 --> 00:00:13,160
Speaker 1: Here the duplicity Ellan Drive with One New Zealand and

4
00:00:13,240 --> 00:00:15,800
Speaker 1: the power of satellite mobile news dog.

5
00:00:15,680 --> 00:00:19,239
Speaker 2: Zivy afternoon, I've got the latest fuel numbers for you.

6
00:00:19,320 --> 00:00:21,960
Speaker 2: As of Sunday, there was about twenty eight days worth

7
00:00:22,000 --> 00:00:24,160
Speaker 2: of ninety one in the country and about twenty three

8
00:00:24,280 --> 00:00:26,920
Speaker 2: days worth on ships. We have forty seven days of

9
00:00:26,920 --> 00:00:29,000
Speaker 2: diesel and we have forty nine days of jet fuel.

10
00:00:29,120 --> 00:00:32,839
Speaker 2: Channel Infrastructure operates New Zealand's largest fuel import terminal and

11
00:00:32,880 --> 00:00:36,560
Speaker 2: the chief executive, Rob Buchanan is with us Hi Rob Hi, Heather,

12
00:00:36,680 --> 00:00:37,959
Speaker 2: those numbers looking good to you?

13
00:00:39,600 --> 00:00:42,920
Speaker 3: Yeah, well, that's absolutely consistent with what we've got in

14
00:00:43,040 --> 00:00:47,080
Speaker 3: our import terminal system. Our terminal system accounts for about

15
00:00:47,080 --> 00:00:50,080
Speaker 3: forty percent of New zealands transport fuel and about eighty

16
00:00:50,080 --> 00:00:52,960
Speaker 3: percent of New Zealand's jet fuel, so that's absolutely in

17
00:00:52,960 --> 00:00:54,040
Speaker 3: line with what we're seeing.

18
00:00:54,320 --> 00:00:56,280
Speaker 2: How low can we go on those numbers before we

19
00:00:56,360 --> 00:00:56,840
Speaker 2: freak out?

20
00:00:58,680 --> 00:01:02,680
Speaker 3: Well, the government put in play minimum stockholding obligations, which

21
00:01:03,000 --> 00:01:07,120
Speaker 3: see the fuel importers need to hold those numbers with

22
00:01:07,200 --> 00:01:09,880
Speaker 3: a minimum of currently twenty one days of diesel moving

23
00:01:09,920 --> 00:01:13,720
Speaker 3: to twenty eight days of diesel soon, petrol at twenty

24
00:01:13,760 --> 00:01:16,600
Speaker 3: eight days and jet at twenty four days, and that

25
00:01:16,760 --> 00:01:20,440
Speaker 3: was part of a fuel security investigation that they undertook

26
00:01:20,880 --> 00:01:24,440
Speaker 3: about eighteen months ago to ensure that New Zealand's fuel

27
00:01:24,480 --> 00:01:27,800
Speaker 3: supply would be resilient to these types of international shots.

28
00:01:28,360 --> 00:01:30,160
Speaker 3: So I think we should take a lot of comfort

29
00:01:30,240 --> 00:01:32,319
Speaker 3: from the you know, what is it about five or

30
00:01:32,360 --> 00:01:35,000
Speaker 3: six weeks of forward cover that we've got today.

31
00:01:36,000 --> 00:01:37,520
Speaker 2: Does that mean that when we get down to twenty

32
00:01:37,560 --> 00:01:39,720
Speaker 2: one days of diesel, twenty out of petrol, twenty four

33
00:01:40,000 --> 00:01:42,119
Speaker 2: of jet field, that's when we start freaking out.

34
00:01:43,920 --> 00:01:47,440
Speaker 3: Well, I think your comments are hypothetical because we're not

35
00:01:47,520 --> 00:01:49,680
Speaker 3: there yet, and it assumes that we will get there,

36
00:01:50,760 --> 00:01:54,120
Speaker 3: and obviously the government's kind of run across this issue

37
00:01:54,200 --> 00:01:57,240
Speaker 3: and is looking at it kind of very seriously right now.

38
00:01:57,760 --> 00:01:59,640
Speaker 3: But you know, as I said, the position we go

39
00:01:59,680 --> 00:02:02,680
Speaker 3: into it is pretty good with the day's cover forward

40
00:02:02,720 --> 00:02:04,040
Speaker 3: days cover that Well, the reason.

41
00:02:03,880 --> 00:02:06,120
Speaker 2: I'm asking you, Rob is because I'm just assuming that,

42
00:02:06,200 --> 00:02:09,160
Speaker 2: given that there has been there will be a point

43
00:02:09,160 --> 00:02:13,120
Speaker 2: at which we stop receiving the fuel at the current rate. Right,

44
00:02:13,160 --> 00:02:14,600
Speaker 2: and so there will be a point at which the

45
00:02:14,639 --> 00:02:17,680
Speaker 2: stocks become depleted. Would you say that that's fair?

46
00:02:19,800 --> 00:02:22,000
Speaker 3: Well, I don't we So we haven't seen that today.

47
00:02:22,120 --> 00:02:24,200
Speaker 2: No, we wouldn't have because the ships have still been

48
00:02:24,240 --> 00:02:26,120
Speaker 2: coming and we won't see it for a wee while.

49
00:02:26,360 --> 00:02:29,000
Speaker 2: But at some point, unless that straight opens up really quickly,

50
00:02:29,080 --> 00:02:30,640
Speaker 2: there will be a point at which we start eating

51
00:02:30,800 --> 00:02:33,560
Speaker 2: into our reserves, right well.

52
00:02:33,360 --> 00:02:35,400
Speaker 3: Just to speak to that. So there's been a really

53
00:02:35,440 --> 00:02:38,480
Speaker 3: significant shock to the global crude supply. So I think

54
00:02:38,520 --> 00:02:41,400
Speaker 3: that's obvious to everybody. About twenty percent of the world's

55
00:02:41,480 --> 00:02:45,400
Speaker 3: crude goes through the strait of homos. But crude is

56
00:02:45,440 --> 00:02:49,360
Speaker 3: a globally fungible product, and there's production in the United States,

57
00:02:49,400 --> 00:02:53,200
Speaker 3: you've got shale, you've got production in the Gulf, South America,

58
00:02:53,400 --> 00:02:58,440
Speaker 3: West Africa, and those countries or those fields and response

59
00:02:58,560 --> 00:03:01,840
Speaker 3: to the higher crup prices that you're seeing will respond

60
00:03:01,880 --> 00:03:05,200
Speaker 3: by ramping up production. And on the other side, you know,

61
00:03:05,320 --> 00:03:08,639
Speaker 3: with high fuel prices, you'll see people using less fuel.

62
00:03:08,880 --> 00:03:12,280
Speaker 3: And so the whole point of having the minimum stockholdings

63
00:03:12,280 --> 00:03:14,800
Speaker 3: that we've got and the forward visibility of fuel coming

64
00:03:14,800 --> 00:03:18,000
Speaker 3: to us is to give us a shock absorber while

65
00:03:18,040 --> 00:03:21,560
Speaker 3: that system rebalances. So I can't tell you whether we're

66
00:03:21,600 --> 00:03:24,000
Speaker 3: going to get there or not, but my point would

67
00:03:24,000 --> 00:03:28,200
Speaker 3: be that the global crud market is, you know, it's

68
00:03:28,200 --> 00:03:30,800
Speaker 3: a fungible product and crewit can go where it needs

69
00:03:30,800 --> 00:03:31,160
Speaker 3: to go.

70
00:03:31,160 --> 00:03:33,519
Speaker 2: Good stuff. Hey, thank you very much, Rob appreciated Robbie Cannon,

71
00:03:33,600 --> 00:03:35,160
Speaker 2: Channel Infrastructure Chief Executive.

72
00:03:35,960 --> 00:03:39,160
Speaker 1: For more from Hither Duplessy Allen Drive, listen live to

73
00:03:39,240 --> 00:03:42,280
Speaker 1: news talks. It'd be from four pm weekdays, or follow

74
00:03:42,320 --> 00:03:44,080
Speaker 1: the podcast on iHeartRadio