Josh Gordon

Treasurer Peter Costello has delivered a blunt warning that Australia is running out of oil as existing fields near the end of their productive lives.

The US dollar’s status as the world’s main reserve currency is under threat as Asian banks back away from the superpower’s ballooning twin deficits.

Even with new discoveries, increasing domestic demand means Australia will need to import more and more of its oil over time.

“The US have only very recently become open about their energy requirements, and some say it’s as big a crisis, or potential crisis, as during the oil shocks,” says Australian Industry Minister, Ian Macfarlane.