This issue has entered the Twilight Zone. The gas cartel is holding a conference that has swamped the media with empty debate.
At Dumbfax, there is perverse “he said, she said” drivel:
Meg O’Neill, chief executive of top Australian gas producer Woodside Energy, said on Tuesday that the country’s $4 billion budget surplus last week – the country’s first since the 2008 global financial crisis – was supported by investment decisions made “10, 15, 20 years ago” on projects that transformed commodities such as iron ore, LNG, and coal into today’s powerful economic contributors.
O’Neill expressed concern that today’s “challenging” investment climate could cloud Australia’s economic picture into the 2030s. The sector claims that a slew of government interventions this year, including record $12-per-gigajoule limitations on domestic gas pricing, has made it more difficult for corporate boards to approve local investment decisions for both fossil fuel and renewable energy projects.
…Tony Nunan, the outgoing Australian CEO of the British-based oil company Shell, stated that this year’s initiatives would make it more difficult for future Australian projects to compete for finance from corporations with a global reach. While reiterating Shell’s commitment to Australia, he stated that the cumulative impact of this year’s initiatives may affect the “risk-reward” balance for future investment decisions.
In order to protect consumers from the largest possible hikes in electricity and gas bills caused by the Ukraine conflict, the Albanese government imposed a 12-month price restriction on domestic gas at $12 per gigajoule in December, which it extended last month until mid-2025.
There is similar tripe across every masthead. Somehow nobody mentioned the fact that the $12Gj price caps have evaporated. East coast gas is trading at $19Gj this morning, 60% above the price cap, and has been all week.
Even worse, you can buy the same Aussie gas anywhere in Asia or Europe for $14.50Gj.
WTF is wrong with everybody? Do some basic research:
- The Albanese Government’s gas policy has collapsed.
- The cartel of Santos, Woodside, Shell, and Origin (plus a few retailers) is forcing Aussies to pay 31% more than Asian customers for their own gas.
- The gas cartel is a criminal and villain that will lie until the day it is killed.
Moreover, the skyrocketing local gas price is skyrocketing the local electricity price:
Before the Ukraine War shock, these prices would have been unthinkable. Yet the war is over for energy markets.
For perspective, most of Europe, which has no gas of its own and is beholden to an evil tyrant for supply, is so flush with LNG that it is now scaling back import terminals.
And it now has cheaper power prices than Australia’s east coast as well, averaging around $120MW/h, 25% below east coast Australia.
The Aussie gas cartel is now officially worse than Vladimir Putin:
Australian energy prices are already at levels that will add 3% to CPI incorporating Budget bill relief. Interest rates will have to climb to 5% at least to make room for the gas cartel gouging. Property prices will enter a double-dip correction and media shares will get slaughtered. Journos will lose their jobs.
They deserve it.
