Gas gas baby is on the nose in Australia as companies try to exploit the war in Europe and make massive profits at the expense of the public.
It is hard to choose the right metaphor. Has the Australian gas industry shot itself in the foot, painted itself into a corner, or is it just throwing a hissy fit? Maybe it has just lost the plot? Perhaps breathing too much of its own product? Gas, gas baby!
“The fact is there is no shortage of gas in Australia, just a shortage of desire to supply it at a reasonable price to domestic consumers. Further, the $12/GJ gas price cap actually ensures super profits in the east coast market for these companies as the average costs of production for gas fields in Eastern Australia is around $5/GJ.
What about the viability of international contracts? IEEFA analysis shows: “This simply won’t occur. Eastern Australia is swimming in gas. According to the Australian Energy Market Operator, the developed proven and probable reserves — that is, those the gas industry could utilise in the short term — are equivalent to 8.4 years of production at the current record production rates of 2021.”
“Australian manufacturers already face a number of challenges: a relatively small domestic market, high labour costs and distance to export markets. Among the few competitive advantages they do have is abundant energy in most forms — coal, gas, wind, solar, and rare earths for batteries. An abundance of gas has not led to low domestic prices in Eastern Australia unlike our Western Australian compatriots.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Finland Gets Floating Liquid Natural Gas Terminal to Replace Russian GasFinland’s first floating liquefied natural gas terminal was moored Wednesday at the southern port of Inkoo to replace Russian gas imports.
Read more »
Departing Abbott aide handled crises from Hurricane Harvey cleanup to Dallas airshow crashLuis J. Saenz, the first Hispanic chief of staff to a Texas governor and the longest-serving, has survived more than five years in the grueling job as Gov....
Read more »
What the Wars and Crises of 2022 Foreshadow for 2023Tyrants and thugocrats have tightened their hold amid challenges to democracies, but they face problems, too.
Read more »