Let me summarise Resource Minister Mad King’s vision for gas for everything:
Australia’s future gas strategy aims to support energy reliability, manufacturing, and industry, as well as tens of thousands of jobs in the manufacturing sector.
The strategy outlines core principles, including managing gas emissions, ensuring affordability, and balancing competing demands. Australia is committed to reaching net zero emissions by 2050, and gas is needed to achieve this.
The strategy includes a detailed analysis of future demand for gas, based on facts and data, and aims to adapt electricity markets to remain fit for purpose during the energy transformation.
The gas industry is a significant economic success story, supplying around 20% of the world’s gas and earning $72 billion of export income for Australia’s economy in 2023-24.
The strategy also emphasizes the need for continued investment in gas supplies to transition to renewable energy and thriving industries.
Australia will remain a reliable and trusted trade and investment partner, with trade partners relying on Australian gas to transition their economies to net zero.
In conclusion, Australia’s future gas strategy aims to ensure affordability, reliability, and sustainability while addressing the challenges of achieving net zero emissions and a sustainable energy transition.
Sounds marvellous. Bravo.
Now let me tell you the real story:
- There is no reliability because a gas export cartel has occupied 80% of reserves.
- Manufacturing is paying $12GJ only because the government forced a price cap on the cartel. This is 400% higher than the traditional price.
- The petrochemical industry has been wiped out. Now, lighter users of of gas like Mars, Pepsico and Nestle are planning to leave owing to the price of gas and power.
- Manufacturing jobs continue to shrink at alarming speed. At 5% GVA, they make the smallest contribution of their type in the OECD. Smaller than Lichtenstein.
- Managing balancing needs is a joke. Mad King’s gas cartel does whatever it likes.
- This ensures that affordability does not exist. The $12Gj contract price is at least twice as high. No cap on the spot gas market sets electricity prices, so we also get regular power shocks.
- Net zero is a joke.
- Gas is needed, but there is none. It is all siphoned off to China via QLD LNG.
- The gas industry is an unbelievable millstone around the neck of the economy. It made $72 billion for itself (none for Australia because it pays no tax) by gouging Australians during the Ukraine War. Yes, Mad King is celebrating war profiteering.
- In short, when the Ukraine War started and Canberra deployed the Mad King to protect Australia, she did nothing, no deals, no threats, no simple national interest. Instead, she fled for a week and hid on a gas rig junket.
Mad King is the gas industry’s not-so-secret pawn in Canberra. She refuses to reserve gas for domestic use or tax the industry properly, protecting the cartel.
Even if her gas supply expansion comes to pass, you will see none of it. It will all be liquified and sent abroad, while domestic consumers are gouged.
