We are literally throwing massive energy stimulus into the sea

It’s maddening. At Domain:

One in three tankers loaded with cargoes of Australian liquefied natural gas last month is either anchored at sea or taking a longer-than-usual journey to its destination as coronavirus prompts more buyers to delay deliveries.

…In the latest sign of the increasing pain in the sector, new figures reveal the number of tankers loaded in June fell from 93 to 85, and of those, one third had their deliveries delayed. Energy consultancy EnergyQuest said 33 cargoes were still either anchored offshore, sailing around in circles or travelling at slower speeds while awaiting destination instructions.

What can I say? The local price is still around $8Gj:

As gas slowly burns off from tankers sailing in circles because export customers don’t want it.

It’s not going to end any time soon, as Shell gas cartelier made plain overnight. Ben van Beurden, Chief Executive of Royal Dutch Shell:

“Energy demand, and certainty mobility demand, will be lower even when this crisis is more or less behind us. Will it mean that it will never recover? It is probably too early to say, but it will have a permanent knock for years. It is most likely not going to be a v-shaped recovery.”

This is still the perfect time to install domestic gas reservation and break the export cartel and contracts. The customers don’t even want it.

Yet, instead, the Morrison Government has betrayed the promised gas reservation deal with Centre Alliance that delivered $158bn in tax cuts and is pursuing very expensive onshore gas development that will not lower prices at all and risks poisoning NSW for thousands of years.

This is literally throwing into the sea the massive possible stimulus of much lower gas and electricity prices permanently for every business and household covering 90% of the Australian population.

We could get the local gas price down to $4Gj no problem at all, instead of being the greatest pack of patsies on earth:

It would take one decent media campaign to tip over this farce yet where is it? No media. No Labor. No lobbies. No intellectuals. No economists. No Centre Alliance even.

It’s bizarre.

David Llewellyn-Smith
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Comments

  1. Stewie GriffinMEMBER

    It would take one decent media campaign to tip over this farce yet where is it? No media. No Labor. No lobbies. No intellectuals. No economists. No Centre Alliance even.

    It’s bizarre.

    No, its EZFKA.

  2. Build a couple of regassification plants on the east coast and buy it back! Or make gas reservation similar to that in WA a condition of new projects eg Narrabri.

    • ashentegraMEMBER

      Ha! Put the gas reservation burden on new projects, ruin their viability and stifle added supply. Meanwhile the bandits make out unhindered and E Australian gas costs stay Gold! Gold! Gold!

      That’s the crazy sort of prescription 3d1k would suggest. Wait a minute…

      • As opposed to putting the reservation burden on existing projects, viability planned under a no-reservation mandate!

        There is little cheap east coast gas. West coast benefits from large conventional offshore fields. Although once mooted domestic shortages appear less likely, obvious solution remains domestic import or reservation applied to new projects.

  3. No media. No Labor. No lobbies. No intellectuals. No economists. No Centre Alliance even.

    You have to wonder what is going on here . My take is that the coalition want to grift graft and rig the market just as much as labor.
    That all the Coalition’s claims regarding lower energy prices are just a fraud.
    Because we are certainly not seeing them.

  4. robert2013MEMBER

    My guess is that MSN and Labor don’t do any/enough of their own research so they base their opinions on commentary and press releases. You get a kind of feedback loop. Eventually news from the underground (and serious investors) gets out and can’t be ignored. Sure takes a while though.

  5. There’s an interesting trend..
    WA cheap gas.
    WA cheap houses.
    WA African gang free.
    WA COVID free.
    WA infrastructure keeping pace with population growth.
    Are we a model for how the rest of the nation wishes it was run?
    (Of course we can’t all have mining economies, but then again, WA doesn’t get to keep its full share of GST).
    And sure our wages over here haven’t been going gang-busters for a decade, but going to the park and beach are free, and there is usually no shortage of public events that can be attended.

    Hard not to be proud of the place and think it just about the very best place to be as the world enters a time of tribulation.

    • codeazureMEMBER

      Social distancing? Ha! WA was born distant from everywhere. They were distant before it was fashionable…

      Sure has its benefits.

      And don’t forget the free roads. That’s a big one. Driving in Sydney costs like you’re in a taxi the whole time.