EVERYBODY wants gas reservation

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You do not have this high an agreement on whether the Earth is round. AFR.

Research by pollster Redbridge for the Australian Pipelines and Gas Association – which represents “downstream” gas businesses – found voter support for a domestic gas reserve at 86 per cent, while less than 5 per cent of voters expressed any opposition to the idea.

Redbridge director Tony Barry said the proposition that domestic gas should meet domestic needs first was an issue that “animates voters”.

“Respondents believe it’s a policy in the national interest and that prioritises the needs of Australian homes and businesses,” Barry said. “[But] what is interesting about these numbers is the cross-party support, including across most demographic profiles.”

The Redbridge poll asked voters if they supported “requiring gas producers to set aside a portion of their supply for Australian households and businesses before exporting overseas”. It is the first time the Redbridge has polled the question.

The upside of using reservation to halve gas prices is incredible. It would simultaneously deliver:

  • a smooth energy transition
  • a huge household income boost
  • an industrial renaissance
  • a significant productivity boost
  • shattered inflation and much lower interest rates

What kind of government can ignore polling and outcomes like this? One that is corrupt beyond measure.

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Resources Minister Madeleine King said Australian gas would play an essential role in the global and domestic energy transition. “We will ensure Australians continue to have access to affordable gas, while maintaining our reputation as a stable and reliable export partner.”

At $12/Gj, we don’t have “affordable gas”. But such lies are no surprise given Mad King’s record.

First, she was tasked with finding a solution in 2022 and came up with a plan to make it worse.

Second, she disappeared onto a gas platform so that nobody could ask her about why she had failed.

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Third, she was part of a non-solution that pinned gas prices permanently at $12GJ, 400% higher than historical averages.

Fourth, she is now selling reservation that won’t work, only on new projects, when the export cartel has already earmarked 90% of East Coast volumes for export from existing production.

Fifth, she spends much her time criticising the excellent Dutton plan, which would work to lower prices a lot if needed, without breaking any export contract.

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One can only conclude that the Albanese government, and Mad King in particular, is bought and paid for by the gas export cartel.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. 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.