The Aussie gas price continued to plunge yesterday as the evil gas cartel games the Albanese Government. The electricity price crashed right along with it:
The gas cartel is playing funny buggers:
East coast gas exporters including Santos and Origin Energy are understood to be in discussions through their industry lobby group on proposals that would bring more gas into the domestic market as they look to head off potential curbs to LNG exports next year that would eat into profits.
…The discussions come as equity analysts are crunching the numbers on the potential impact on Santos and Origin should LNG exports from Queensland be capped next year.
Credit Suisse has estimated the potential hit to Santos at less than 3 per cent of earnings before interest, tax, depreciation and amortisation, assuming 1 million tonnes a year of LNG (56 PJ) is curtailed and Santos’ GLNG venture bears 66 per cent of the impact.
Another analyst said they anticipated no discernible impact…
What a disaster. A 3% hit to one company instead of a huge negative income and wealth shock of over $1tr to rock every business and household east of WA. How dare we!
More:
…maintenance outage at Origin’s Australia Pacific LNG project in Gladstone that started last Thursday that will provide additional gas into the domestic market to meet winter requirements.
Even the release of more gas for political purposes is gamed.
What terrific measures of Canberra cowardice these developments are. Why are we even having this discussion? Apply $7Gj reservation NOW and everything will be hunky dory.
Or will it? No. Why?
Cheap gas will fix TAS, VIC and SA electricity prices because it operates as the balancing fuel for cheap (unexported) brown coal and renewables. However, it will help but not fix NSW and QLD prices because they rely heavily on exported black coal which is also price sensitive to the Ukraine war.
That is why VIC power prices were yesterday $27MWh while NSW and QLD were still $150MWh.
So, assuming Albo’s cowards do finally apply reservation to gas, they will then need to apply a similar solution to the coal market. As a measure of how tight is the domestic market, you may recall that even gas cartelier Origin could not secure enough to run its NSW power plants recently.
Anyways, we are hopefully making progress, though so far it is more moral than real.
As an aside, I’m so hot right now that I received an invitation to the Palace to appear on Credlin last night. The video has not been posted yet.
I also did Martin North so if you’ve still got an appetite for getting angry about being screwed by energy cartels then there’s plenty more where that came from below…
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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That’s David Llewellyn-Smith…so hot right now.
“to appear on Credlin”
Hopefully the “appearance on Credlin” turned out to be X-rated hard core.
We knew him before he was cool. Or hot. Whatever.
“I’m so hot right now that I received an invitation to the Palace” haha classic. Now aim for the big leagues, Coshy & Waleed!
OMG. Appearing on Credlin is akin to selling out to Murdoch.
As long as the message gets across, does it matter if it’s Murdoch?
But, but what’s the total audience? ~60,000 rusted-on RWNJs?
Only a few angry leftists and ABC’s Media Watch.
Lots of people assume – not unreasonably – if it comes out of the Murdoch stable, the opposite is the truth.
Exactly the right audience.
Well done David.
How about some balance in this hyperbolic commentary on natural gas. Sheet the blame home in Victoria onto the Bailleu and Andrews’ governments who banned even onshore gas drilling to pander to the irrational greens. Those greens who demand mass immigration from countries where the per head greenhouse gas emissions are x to Australia where emissions are 10x, and they drive SUV’s at 10 litres per 100 km and leave the engine running and the AC running whilst waiting for the takeaway..
how about some more balance, we use not much more gas than that required to process and freeze the rest that is sent offshore. This crisis is not about supply its about aligning local prices to global crisis pricing. Victoria’s & NSW policy on exploration wouldn’t have solved this in the slightest.
Australias emissions per capita are some of the worst in the world, far in excess of any of the donating countries.
You started this with “this hyperbolic commentary” then jumped into shouting at the clouds.
Thanks for making my day
In a side note, the richer the person the bigger the ..
https://www.drive.com.au/news/drivers-expensive-cars-pedestrians/
Agreed.
Haven’t watched it but I HOPE you got the point across that the LIBS caused this and now it’s up to Labor and the Teals to FIX it. Key point
You are not alone David, this from RenewEconomy;
https://reneweconomy.com.au/there-is-no-shortage-of-gas-or-fossil-fuel-cartels-in-australia/