Amid a worsening global energy crisis, New Zealand and Singapore’s freshly struck deal to keep fuel and other essential goods flowing is being touted as a boost to supply chain resilience.

The agreement commits both countries not to impose export restrictions on each other during economic upheaval. But it also highlights an uncomfortable reality facing New Zealand’s energy security, which depends heavily on fuel stored and refined overseas.

Nearly 60% of the country’s petroleum reserves are held offshore in countries such as the United States, Japan and the United Kingdom, and around a third of its fuel is refined in Singapore. As global tensions disrupt oil markets and put pressure on key shipping routes, that model is being tested.

While New Zealand meets international requirements to hold 90 days of net petroleum imports as a member of the International Energy Agency (IEA), much of this is stored thousands of kilometres away.

In emergencies, the IEA can coordinate collective stock releases to stabilise global markets, as occurred in the agency’s release of 400 million barrels of oil in March.

However, a closer look at the data shows New Zealand is a clear outlier in how it meets these obligations.

How NZ’s fuel security has shifted offshore

To remain compliant, the New Zealand government........

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