See ya Beach and wouldn’t want to be ya

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Honestly, it’s like a retard debating a spastic debating a dumbass.

Beach Energy CEO Brett Woods said energy companies that already struggle with poor business conditions in Australia would look away from the local market.

He said that 20 per cent of the total LNG export market was effectively the size of the domestic market and warned that energy security was under threat from the policy.

Except it’s not 20%. It’s 20% of spot and new contracts.

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That is, today it is nothing.

On the East Coast, which is what matters, by 2031 , it will be 10% of the local market.

It is not until 2036 that all contracts roll off, so then the reservation on the East Coast will be about 200PJ, roughly 40% the size of the local market.

We need to discuss what we’d like to do with this 200Pj of gas, not just listen to Brett, versus Pauline, versus Chris who all lie for a living

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In thinking this through, we should first consider whether the gas cartel has been a good corporate citizen. Pfft. It has gouged and war-pioneered us for a decade.

Second, will we need more gas in the new era of anarcho-imperialism? Oh yes. Heaps of it. We need to rebuild fertiliser and explosives manufacturing. Helium functionality. Plastics and glass. Cheap steel. Everything building materials.

In fact, we have lost more than 50PJ of gas demand in industries in the past ten years, thanks to the gas cartel: urea, plastics, explosives, helium, and building materials.

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That all needs to be rebuilt and more.

So, in fact, there is only 200 PJ of gas to debate for 2036, which we’ll need to suppress prices and rebuild the industry.

If Beach doesn’t want to be part of Australia, then it can fuck off and give its acreage to somebody who does via use-it-or-lose-it laws.

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.
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