The Australian has a consistent viewpoint on the use of gas that is clearly destructive to the Australian economy (and, therefore, itself).
It is pro-gas, but it very rarely argues in favour of policies like domestic reservation, even when they are promoted by the Coalition.
To some extent, this is probably ideological. The Murdoch Press doesn’t believe in government intervention.
But that’s not entirely true, is it? It loves warping policy to benefit itself and its own assets.
So, why does gas fall outside of this purview? Take today at The Australian.
Woodside Energy and ExxonMobil’s local arm Esso have found new gas in the Bass Strait, offering a rare glimmer of hope for Australia’s beleaguered east coast energy market and buying sufficient time to find a possible policy solution to a shortage that could arrive as soon as next year.
The joint venture partners submitted revised reserve data revealing the discovery of about 92 petajoules of gas, the Australian Energy Market Operator confirmed. The find, while modest by historical standards, delivers a critical – albeit temporary – buffer to an increasingly tight market that is headed for deficit.
…Andrew Forrest’s Squadron Energy, which is backing the Port Kembla LNG import terminal in New South Wales, recently pushed back the expected start-up of the facility to 2027, acknowledging demand had yet to materialise.
What about the third and only rational option of domestic reservation? The Dutton plan, taken to the last election, was brilliantly thought through. It would have lowered gas prices to whatever level the government chose via export levies without jeopardising any production or export contracts.
Thus, it held out the prospect, by itself, of restoring the private sector economy (and Murdoch profits) as inflation was crushed and real household incomes spiked.
Instead, we are stuck with a gas price that is double what it should be.
And an outlook for electricity prices that will also be double what they should be if gas is imported, because gas is a key marginal price setter in the wholesale electricity market.
This guarantees a weak private sector economy and excessive public spending with higher taxes as an offset.
This is the very opposite of what Murdoch is supposed to stand for in ideology, politics, and profits.
