European gas price crashes far below Australian

Just sayin’. The Dutch TTF is now pricing gas, including Australian, at AUD32.77Gj and falling (I’ve converted to Gj and AUD):

This is because Europe is accumulating its winter storage well ahead of schedule:

Meanwhile, in Australia, where the gas is produced for $1Gj, only a fixed price of $40Gj imposed by the regulator is preventing the war-profiteering gas cartel from charging $800Gj:

Australia would literally be better off bordered by a hostile post-Communist power that had invaded QLD and was charging a war premium for energy supply.

But, you know. There is ‘nothing we can do’. There is ‘no short-term answer’. There is no ‘quick fix’. There is ‘no silver bullet’.

There is one thing you can do if this is not fixed.

NEVER vote Labor again.

Houses and Holes
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Comments

  1. If only we produced our own gas!!

    Honestly, if a war, pandemic and financial hoarding isn’t enough to intervene and fix markets, then what is????!!!!

    These are all government problems of sorts – stop saying government can’t interfere with markets…it’s governments that created these messes! Intervention into markets is fixing them, not hurting them, therefore. Crikey…stop the knee-jerk, simplistic marketmarketmarket throw away lines, and get some perspective.

    Intervention is, in every possible sense, including a free-market sense, the right thing to do.

    • Free market, we’ve never had one. So I guess you might as will interfere. Or does government only do that when the capital owners benefit from the interference.

  2. Are you kidding?

    There were plenty of people complaining about how ineffective Labor would be. Just like there were plenty of people complaining about how, once they were in government, they would gradually swing back all of their decisions toward their newer woke leftist base, as opposed to the minimum wage battler they have traditionally supported.

    “We will examine that when we are in government” is a line that should have sent shivers down the spines of every LNP voter who was thinking about a Labor vote.

    It’s rich to complain about Labor now after having spent the last 12 to 18 months screaming for them to be voted into government.

    • Ronin8317MEMBER

      On the South Pacific islands, the ALP did more in one month than ScoMo in 3 year. Furthermore, they are reviewing the Port of Darwin lease right now, which the LNP refuse to touch.

      On the issue of gas pricing, It’s not like they don’t know what to do, but they’re refusing to do it due to a lack of tickers.

      • ErmingtonPlumbingMEMBER

        They can’t change legislation until they’re back in parliament.
        And if they are going to do something dramatic about Gas they are better off doing so after consumers get really Badly stung by these gas cartel Fkwits and realise properly that Government needs to step in.
        They are avoiding Sovereign risk hysteria from the mainstream press if they move to early.
        People need to suffer a bit of pain before they realise something is really wrong with the way OUR resources are owned and distributed

        • Great balance.

          They’re been in power for what, 2 weeks.

          Wouldn’t they be getting advice from the Solicitor General on the legality of a range of options before doing anything very big?

        • I will give you some credit for that evasion Ermo.

          One idea would be for Labor to announce that the energy situation would continue to done the LIBERAL way for another 12 months so that voters can learn a lesson and reap what they have sown with their previous Liberal voting.

          AND in exactly 12 months the new Labor way would be implemented abruptly so that the DUMB voters can clearly see the difference and vote accordingly in future.

      • They’ve met a few leaders in the Pacific which I agree is a good start. My point is that MB has spent 18 months screaming for a Labor government and has just ended an article with “Never vote Labor again”.

        “Nine years to fix it” is irrelevant given it has only impacted people – and therefore been ‘on the radar’ of Joe Public – in the past two to three months.

        • MB had been advocating for the removal of the LNP. That doesn’t mean a vote for the ALP – they’re as execrable as each other.
          Too bad we didn’t get a minority ALP govt.

    • AdrienneMEMBER

      I’m beginning to wonder if some of the posters at Macrobusiness are schizophrenic.

      I vote neither labour or LNP. But I now which way my preference flows and it certainly didn’t go to the LNP. Sure Labour aren’t a great lot, but and they deserve criticism. But the claim of never vote Labour is absurd given the other alternatives.

      • If certain people – MB journos – spend 18 months screaming for Labor to be put in power, and then a week after they are end an article with “Never vote Labor again”, I think it’s fair to question the logic of those people.

  3. Never vote labor again. Hahah, they will, including many here. Besides you should say never vote labor or LNP again, they are the same thing.

  4. Man, few are as hard on the ALP as me, but…

    NEVER vote Labor again.

    is a bit overboard….

    It’s not as if they’ve been inactive, they’ve been very busy. I would suggest they’re dealing with many fires to fight, and they’re dedicating to putting each one out…

    I would suggest they’re prioritising the Solomon Islands, and other 3rd world, racist sh!tholes, ahead of the punter being inconvenienced with high gas prices.

  5. TheLambKingMEMBER

    NEVER vote Labor again.

    You really are an idiot sometimes!

    LNP had 9 years to fix this. You have 9 years of inaction, but it is Labor’s fault (who have had an energy minister for less than a week and there STILL has not been a cabinet meeting,) and you are not voting for them again???

    I repeat, you really are an idiot sometimes!

    • The Travelling PhantomMEMBER

      The energy prices pushes inflation…
      Inflation pushes RBA to increase interest rates…
      Higher interest rates DLS hates cause they might affect the high house prices he adores and higher interest rate doesn’t fit in his financial investment strategy….
      In short I started to think it’s maybe personal investment.
      If he invested with those gas cartels doubt we would hear that much

    • “NEVER vote Labor again.”
      It is certainly way too premature to be making such calls

  6. LachlanMEMBER

    Why Bowen or King have not come out and said “I have today instructed my department to draft the legislation for an East coast gas reservation that I will place before parliament at the earliest opportunity.” I cannot fathom. Prices would fall in a heartbeat. And if they ever rose again all the spineless Phillies would need to do is blow the dust off the draft.

    • Why Bowen or King have not come out and said “I have today instructed my department to draft the legislation for an East coast gas reservation that I will place before parliament at the earliest opportunity.” I cannot fathom.

      Because sometimes you don’t play your hand early.

  7. MB are saying never vote Labor again IF NOT FIXED!
    This, in my opinion, will be an outcome more than a choice, failure to use this crisis to fix the ongoing gas & energy mess will mean their thin margin will be obliterated next election (especially as so many already believe the LNP to be the best economic managers, even though the opposite is actually true!)

    • Arthur Schopenhauer

      A growth in Teal candidates is the most likely outcome. The LNP talent pool barely comes up to their ankles.

    • Oh Totes where art thouMEMBER

      I’m glad someone else read the article properly with all the kicking into DLS that’s going on. If Labor don’t properly fix the clusterf**k that is our gas markets then I for one will be lining up at the ballot box with my cricket bat. I don’t want Labor to be Liberal Lite. I’ll take the full bodied LNP Evil for that.

      You’re in government now boys (and girls); let’s see you act like it.

      • ” I’ll take the full bodied LNP Evil for that.”
        I wouldn’t vote for the LNP in a million years. Much of this mess has been orchestrated by the LNP and it’s arguably part of the greatest economic hospital pass we’ve seen – which is saying something given Frazer/Howard. We all saw what happened during the last election so there’s no doubt how the press will react if the ALP choose to take on energy players like Santos who have a notorious reputation. It will be a rerun of Rudd.

        At least we’re getting some sanity with Foreign Affairs, Home Affairs and a federal ICAC. Hopefully more to come….

        • Oh Totes where art thouMEMBER

          I wouldn’t vote for the LNP in a million years.

          Neither would I. However if want the LNP, I’d vote for the LNP. I don’t want to vote Labor and get LNP Lite.

          • Fair enough too mate – with you on that. Fingers crossed we might see a bit more spine in the coming weeks.

  8. RomulusMEMBER

    Bowen and King have seen the light. Announcing just now that they are reviewing the gas trigger including changing the ADGSM. Sounds like the pressure has got to them and they may actually do something.

    • C’mon the slightly more representative member of the duopoly isn’t going to come in and fragrantly be seen to be acting for the citizenry against the owners. Look what happened to Whitlam! They need to put up a show of ‘finally bowing to pressure’ to minimise the upset of their donors. This is the feeble state of our democracy.

    • Gut feel, it will be a disaster… its a shame, because I think he (Albo) is fundamentally a nice guy. But so was Kim Beazley, didn’t mean he would have been a great PM.

      The irony of the above, is that MB cannot bring themselves to give an honest discussion. They said coal was over priced, they say that oil is over priced, but here we are! Newcastle coal futures, have just dropped below the $400/t but seems to be plateauing supported by continued robust demand against a tightening supply. Remarkably, this should be a weakest part of the season as the norther hemisphere enters summer. All those big-wg G7 climate and environmental ministers met in Berlin the other day and agreed to phase out the use of coal, but the EU (with the exception of France) has already phased out their use of nuclear power! In the meantime, Europe are planning to cut Russian oil, but as Jim Rickards points out, if you read the fine print on many of the announced sanctions, you’ll see that the effective dates are August 2022 (at the earliest) and many have effective dates of year-end 2022 (its going to go far longer than a year – one could assume that this conflict can only have a binary outcome. The Russians see this war as existential. The US sees this as a way to bleed out Russia economically. Two very different motives. The Ukraine to Russia is everything, to the US, nothing more than a foreign battlefield. And although the Russians are suffering significant losses on the ground, the final outcome is not really in doubt).

      What do we do if the sun doesn’t shine – like at night? Or is the wind doesn’t blow? All discussion is dishonest, because the participants are green believers. Shame really. Hence the complaining about prices given previous anti-development statements is hypocritical.

      Buy O&G companies – US oil shale.