Six years late, SmoCo discovers gas climate change solution

Via SmoCo this afternoon comes a notion six years too late:

“We need to get the gas from under our feet. There is no credible energy transition plan for an economy like Australia, in particular, that does not involve the greater use of gas as an important transition fuel.”

“There are plenty of other medium or long-term fuel arrangements and prospects, but they will not be commercially scalable available for at least a decade is our advice.

“Gas has a critical role to play, as a back-stop to our record investment in renewable energy generation. It helps ensure we can keep the lights on when the wind isn’t blowing and the sun isn’t shining.

“Gas can help us bridge the gap while our investments in batteries, hydrogen and pumped hydro energy storage bring these technologies to parity to traditional energy sourcesful right now we got to get the gas.

“Our focus is also squarely on harnessing the power of new technology and allowing natural markets to operate together with the desire and ingenuity of Australians to reduce emissions while keeping the economy strong.”

…Our action, though, is a balanced and responsible emissions reduction plan to reduce emissions by 26 per cent through to 2030 that we took to the Australian people at the last election.”

“Our target is comparable to countries like Japan, New Zealand and Canada. Especially when account is taken of such factors as our geography, our population density, growth and economic and comparative advantage. It’s a target higher than every other major economy in Asia.”

“A target that will see our emissions per capita fall by half. Half!”

“Our 2030 target is set and we intend to meet it and we intend to beat it. Just as we previously beat our Kyoto 1 and Kyoto 2 targets, when all the critics said we wouldn’t and are saying so again about 2030. And if legitimate carryover credits are not necessary, even better.”

“However, let’s not forget on this point — it was the Labor Government that made carryover credits a condition of their signing up to the second commitment period of the Kyoto Protocol. So I’m not copping lectures from that lot.”

“We’ll do this consistent with the commitment we gave to the Australian people.”

Looks like I am writing government policy now. While you’re at it SmoCo how about cutting negative gearing and immigration.

Whether this actually plays out as a major policy shift does NOT depend upon the states freeing up fracking. There is no cheap gas left in the states outside of the gas export cartel. Moreover, the hungry export cartel does not have enough gas so it will buy any new suply that hits the market without gas resrevation.

That’s your answer. RESERVATION. The recent ADGSM review recommended putting a price trigger into the mechanism to lower prices to ACCC net back, today around $4.50Gj versus $11Gj in the contract gas market.

Just pull that lever and make Big Oil pay for its massive misallocation of capital into gas excessive export capacity.

Does SmoCo have the gumption for this no-brainer, national interest move?

David Llewellyn-Smith
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Comments

  1. HadronCollisionMEMBER

    En-oh, NO.

    No sack.

    He is without sack.

    The man does not have a sack.

    He is sackless.

    • GunnamattaMEMBER

      I must confess that was my first thought.

      We should never forget the PM is a card carrying, bible bashing c☆nt…….

      He isnt interested in ordinary Australians having cheaper energy.
      He isnt interested in ordinary Australians have more reliable energy access
      He isnt interested in man made global warming

      And he likes grabbing the hand and patting the back of those who have asked not to shake his hand.

      Forcing something will be his default response……..

      And he will keep forcing until that reptilian mind detects threat.

      Forcing fracking is just the sort of ideological bigotry he would be up for.

      • happy valleyMEMBER

        +1 And then we can experience earth tremors a la Blackpool, England, but just like the bushfire smoke haze that Scotty from Marketing so well remembers from years ago, he’ll likely remember we’ve always had tremors.

        Choose your health hazard: bushfire toxic smoke, violent sorms, coronavirus, contaminated and/or no water supply, earth tremors …?

        How good is Straya.

      • With respect, he may be a Christian, but it doesn’t mean that his actions are consistent with the Bible (a number of his policies are not, and his public empathy isn’t in keeping with Biblical empathy, respect, love…)

    • Arthur Schopenhauer

      Yep. Got to make up the projected shortfall of the Queensland fracking projects. A Numberwang of epic proportion.
      Code for frack everywhere.

    • +1 this is exactly what I suspect he is really up to, rather than fix the market & give the economy a fighting chance at being competitive Nathans joust going to be about forcing fracking which will mean high prices persist (well we might neat it a couple of cents cheaper just so they can claim they lowered prices without making us competitive.

      hope I’m wrong.

    • Being repetitive…my immediate thought, too. Admittedly, H&H addressed that, but I wait to be disappointed and angered in another new and creative way by Aus politics

  2. Ronin8317MEMBER

    Rather than gas reservation, ScoMo will use this as an opportunity to lock in gas prices at $12 per Gj to make fracking everywhere profitable.

  3. Our emissions per capita will fall, and keep falling, if we keep increasing our population faster than our emissions.

    • Who are you asking to build it. The government gave up on any responsibility for power long ago.
      And I’m not sure current power station owners are interested in cheaper more reliable power

      • Jumping jack flash

        This!

        The public sector is useless and inefficient, and has far, far more important things to worry about.

        The private sector strives for efficiency… right?

        Not in an environment such as this, where personal debt maximisation is the name of the game, and taking on insanely huge quantities of debt debt is completely and absolutely as necessary and as natural as breathing.

      • As things stand today, a bit itf govt power to keep the private sector a bit more honest would be good.

        Then AEMO and grid owners need to fix grid connection issues for renewables…the money wants to flow now…

  4. There won’t be any reservation. This is an ideal situation for scummo to win win. Put together a plan that on paper seems a reasonable climate change mitigation strategy. Use more gas. Keep gas prices really high. When people complain say, hey this is your fault. Energy costs are so high because of renewable and climate change mitigation. This is what you wanted. Well now you have to pay for it. So he wins by bashing the Greenies. The cartel gets to cream the profits. He looks like he actually tried something. Then to provide relief the government will fund new coal fired power stations. And the people will rejoice in the sensible government policy.

    • it’s a question of how many times must we give that walking turd from marketing the benefit of the doubt.
      How many times must we think that “this time he will make the right decision” when evidence
      points in certain directions all leading to C_NT ACT.
      The man has shown who has him by the ‘nads. It must be clear to all by now?

  5. haimona12MEMBER

    Oz (mostly the LNP) has missed the gas transition opportunity by a quarter century. It should’ve jumped in around when the Kyoto targets were set in 1997. Gas no longer stacks up because there isn’t enough carbon headroom to run and hence finance new gas capacity for the required 40 years or so. So it is really now only for niche applications, especially small scale tri-generation where the efficiency factor gets up toward 80%. The large scale gas transition opportunity was in the 1990s. DOMGAS in WA already delivers modest gas prices over there – the mechanism certainly works.

  6. What happened to the deal with the Centre Alliance that was struck in return for passing the tax cuts?

    • I’ve been asking Senator Rex Patrick the same thing over the past few months….so far all I hear is crickets.