Australia has, and faces, a growing problem with regard to the ability to meet the demand for liquid fuels from indigenous petroleum resources. The position for natural gas is better but there is no room for complacency._x000D_
Since the coal resources are relatively extensive, interest in the prospect of producing liquid fuels from coal is in- creasing. The approaches to the production of gaseous and liquid fuels are briefly reviewed and the present status of coal conversion technology is discussed. Many problems remain to be solved and it is estimated (in the USA) that another 8-10 years will be required before any of the processes for liquid fuel production are considered sufficiently efficient and viable to go to a demonstration plant. Coals represent complex feedstocks and the effects of variations in coal properties on oil-from-coal processes are not fully understood. The thermal efficiencies of various coal conversion processes are considered in relation to their impact on coal requirements. The production of Australia's present requirement for liquid fuels by the only commercial process in operation would require a four-fold expansion in the local consumption of coal._x000D_
Any assessment of the suitability of oil-from-coal processes currently under development overseas for Austra- lian coals and requirements must take heed of the differences in coal properties and motivation. The economic via- bility of processes for producing oil from coal will continue to be uncertain because of the large difference between the World price for crude oil and the actual production cost.