Chevron: You can’t take or tax gas

From The Australian:

Australia could resolve its energy crisis “very quickly” if it followed the lead of the US in unlocking its gas resources, the head of oil and gas giant Chevron’s Australian business says.

Speaking at a Committee for Economic Development of Australia breakfast in Perth this morning, Chevron Australia boss Nigel Hearne said the development of unconventional gas fields in the US had made businesses more competitive and had generated millions of jobs and billions in government receipts.

…“Pressure being placed on governments for policy interventions on issues such as the PRRT, bans on oil and gas drilling and mandated local content quotas send the wrong signal to investors,” he said.

The US has both domestic reservation and oil and gas taxes. It also forces fraccers to pay locals a big royalty cut. If you want to know how to fix the energy crisis then don’t ask the people that created it.

The fix is very simple and quick. Ban third party exports. We need only to reserve 3.6% of projected 2018 exports to fix the shortage. Then you fix the PRRT.

Voila!

Comments

  1. US will do what it likes to its environment, in many cases to its own detriment (DDT, lead in petrol, Deepwater Horizon, Exxon Valdeez, who knows what else). Doesn’t mean other countries should follow its lead in trashing their natural environment because they are unable to see past short-term free market ideology.

    • The irony is that luxury showers and toilets are banned in USA!

      So it is not really a free market.

      While luxury showers are legal in Germany/France/etc and luxury toilets are legal in Japan, etc.

      • I can’t come to grips with your fixation on this ban.

        No offence but it borders on the bizarre. Yet you manage to conflate it with all manner of things.

        “Holy sh$t love this is a delicious banana bread.”
        “Gee thanks my hunky husbo but OH MY GOD WHEN WILL THEY END THE LUXURY SHOWER BAN!”

        Edit: not that you’re a hunky husbo, just reflecting a real life convo in my household where I, your humble hunky husbo, take up your endless torch for a rescision of the luxury shower ban #ENDTHEAGONY

  2. The solution is known, the will to do so is what is absent.

    It will remain so whilst MSM continues to seek comment/advise from parasitic rentiers.

    Or whilst the political establishment are little more than a bunch of PR frontmen.

    Fully expect Chevron to win the discussion, unlock the gas fields, and pay no tax/royalties.

    • The media also ignore what happens in Qatar, KSA, China, India, with mineral resources.

      Those nations put a simple export tax on mineral resources.

  3. I love Macrobusiness because the articles here make so much sense. I can understand Turnbull ignoring the obvious as he has vested interests. But why is mainstream media not all over this?

    • bolstroodMEMBER

      The main stream media also have vested interests to look after.
      Most MSM is owned by the same interests that PM Turnbull bows to.

    • The Australian had not turned a profit for years. I have assumed it has ‘other’ money sources – someone must be funding the Climate Denier articles and directing the pro Mineral Council narrative?

  4. Chevron is a tax avoider and rentier in exclesis. Anything they say on the matter can be safely ignored.