ScoMo farts ‘gas led recovery’ nonsense

Prime Minister Scott Morrison has again pitched a gas-led recovery by bolstering gas supplies:

The Prime Minister unveiled a plan on Tuesday to shore up Australia’s gas supply and slash power prices during a speech near Newcastle.

A $52.9 million package will be included in the Federal Government’s October Budget to unlock supply at new and existing gas fields in five key basins.

A National Gas Infrastructure Plan will also be developed by February to identify priority infrastructure projects, with the Government warning that if the private sector does not invest, it will intervene by underwriting or streamlining approvals…

Under the Morrison Government’s plan, new gas supply targets with states and territories, and three east coast LNG exporters, will also be established.

$52.9 million amounts to three-fifths of f$#k all in the grand scheme of things.

Nor will the Government’s proposed solution of increased supply lower prices. Instead, it will lift prices from here. All new gas supply is too expensive to make a difference or is within the cartel.

Broad-based domestic reservation is deployed worldwide (including Western Australia) to prevent all of these problems. It is the only solution.

Leith van Onselen
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Comments

    • IIRC most of the submissions made to the public enquiry into the Narrabri gas project were against it. I watched some of the proceedings and the only proponents were those in the gas industry or who bought the lies that Narrabri will lower gas prices. Even though the project is strongly opposed it will still get approved because the Libs are completely bought by the cartel and #SuperBarilaroBruz is too busy wanting to slaughter Koalas to actually give a damn about farmers.

    • I sms’d RN’s text line this morning before Butler came on and of course Kuddles Kelly didn’t mention it. Why Labor aren’t screaming up hill and down dale about this, as well as Pax Rhetoric, is beyond me. Poor old Pax Rhetoric, sold down the river.

    • That is technically possible. The difficulty is getting there. It would require vision, planning and effort of the type that seems too far removed from how Australia currently does things. A bit like myself training for and completing a marathon. The raw materials are there yet the management is far too comfortable to undertake the challenge.

  1. darklydrawlMEMBER

    Of course it is mere coincidence that Nev Power, Chairman, National COVID-19 Commission who advises the PM on post covid recovery plans and is ALSO on the board at Strike Energy – Oil and Gas provider – would be promoting a ‘gas lead recovery’. Conflict of interest much?

    https://www.pmc.gov.au/ncc/who-we-are
    https://strikeenergy.com.au/

    WTAF is wrong with this country??!

    “Strike Energy Limited (Strike) is an Australian based, independent oil and gas exploration company. We aspire to be Australia’s lowest-cost onshore gas producer, providing natural gas to support Australia’s transition to a lower-carbon future. Strike has gas assets and exploration acreage in Western Australia’s Perth Basin, where we operate one of Australia’s largest onshore gas discoveries; and in South Australia’s Cooper Basin.”

  2. I don’t think this should be dismissed.
    Seems like Morrison is actually kicking off a process that will lead to lower gas prices.
    Isn’t this what MB has been calling for?

    • It will lock in higher gas prices, not lower.

      What will lower gas prices is gas reservation, like every other gas exporting country on Earth except for Australia.

      • Imagine buying domestic gas at half price like our export recipients do.

        I think it was posted here on MB a few months ago that east coast of Australia would save $6 Billion a year with a bit of domestic reservation… like WA and every other gas exporting country in the world.

        Why have we been paying double domestically compared to the export price? Seems we export about 1000% more each year than we actually use.

        This seems like such an easy win for Slowmo but I guess it shows that he is just another paid-off lump-of-coal sucking stooge like all the other porkytishuns.

        Now taxpayers will be subsidising Nev the Frackhead to destroy fertile farmland and lock in high domestic prices

    • TheLambKingMEMBER

      Because the extraction cost is more than the current wholesale gas price! So by definition, it HAS to raise the price! https://reneweconomy.com.au/narrabri-csg-project-damned-as-fairy-tale-that-wont-cut-gas-prices-52584/

      The assessment has shown that the cost of producing gas at the Narrabri CSG project would be substantially more expensive than other supplies of gas available in the market, with an expected cost of $7.40 per GJ.

      Once you add shipping and profit you get $10/GJ. Average 2019–20 gas market spot prices ranged between $5.77 per GJ in Brisbane and $7.13 per GJ in Adelaide. https://www.aer.gov.au/wholesale-markets/wholesale-statistics#:~:text=Average%202019%E2%80%9320%20gas%20market,%247.13%20per%20GJ%20in%20Adelaide.

      We don’t need more gas. We have enough to be the biggest supplier of LPG in the world. So if we have plenty of supply of gas and this gas will be MORE expensive than anything currently being sold, what is the point of extracting it?

  3. I wouldn’t worry too much. The fact that $52.9m is used as the figure means it has been designed to look like the idea has been thought out professionally and costed out properly, sounding much more accurate than $50m or even $53m. It is straight out of the Utopia Handbook for Good Politics. Now, do you want sushi or dim sims for lunch?

  4. You have to wonder how foolish Senator Patrick is feeling given he had the government over a barrel to get their tax cuts through the senate after the 2019 election and GasMo promised to look at implementing domestic gas reservation and nothing has happened. The same promise to “look at gas reservation” was mentioned in the media articles today. Yet the government could pull the trigger today and wont. It wont happen until someone with vision and courage is in charge.

  5. TheLambKingMEMBER

    The biggest indicator that this is sunk money is the book value (in the annual reports.) Santos has put on their books that the value of the Pilliga forest as an asset is $0. That is right zero. Santos attach a value of zero on the rights to extract gas. They expect that it is not worth anything to them. Why? Because they know that the gas extraction costs are too high to sell.

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