Victoria to go slow on gas?


From the AFR:

The threat of soaring gas prices will not prompt Victoria to more quickly develop potential gas fields on land, Premier Denis Napthine said.

…Dr Napthine said Victoria had significant energy options with brown coal and offshore gas as well as wind, solar and wave energy. “We are very blessed with our energy options,” he said.  “Any gas that is onshore gas that is in Victoria has been there for thousands of years and up to tens of thousands of years, I’m sure it will be there for a few more years to come.”

Interesting comments ahead of the Reith report which is tipped to recommend the exact opposite. A better rationale for Napthine’s go slow, beyond pointing to dinosaurs, would be to explain that onshore gas is a lot more expensive to produce than offshore gas so it solves nothing for manufacturers.

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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