Energy one of Australia’s competitive advantages
Australia has a massive amount of gas which could fuel vibrant and growing Australian based industry if there were the right policies in place. In fact the International Energy Agency ranks Australia’s gas resource among the world’s most abundant, I wll say that again AMONG THE WORLD’S MOST ABUNDANT.
Why then are we not maximising the benefits of this competitive advantage for the entire nation rather than a few reaping the rewards? Successive governments have failed to introduce policies which ensure that Australian industry and the people living in Australia benefit from this natural resource. There are even some ex politicians now working as lobbyists for the industry.
It is anticipated that in the next 12 months electricity prices will rise in Queensland by around 29% and in NSW by over 20%.
Gas producers that have been allowed to reserve critical natural resources exclusively for export have painted any attempt to promote a functioning domestic market as protectionism. The question has to be asked, who is running this show and who are the beneficiaries.
As Craig Arnold Managing Director of Dow Australia and New Zealand wrote recently ”
Our submission to the minister cited commentary by global analysts at Credit Suisse, which pinpointed the exceptional factors at work in the Asian gas export market: “The cosy club of LNG developers, super-majors and a few ‘specialists’ have fully embraced the buyer’s drivers, enjoying supernormal rent in good times and using crude price linkage to offset soaring unit development costs in recent years.”
The current policy settings have produced a situation in which Australia’s advantage in gas resources is allocated solely to the interests of those whose profit is maximised by maintaining the “cosy club”.
So long as market distortion is tolerated, Australians are denied the opportunities of a functioning domestic market for its abundant and valuable gas. We have instead a crude ratchet effect in which, from time to time, domestic prices are simply jacked up.”
It is way past time that our elected representatives ensure that Australia as a whole benefits from one of our most abundant natural resources and gaurantee supply of locally priced energy for both industry and dosmetic supply.
This entry was posted on Tuesday, February 25th, 2014 at 4:10 am and is filed under Australian Manufacturing, Businesses not doing the right thing, Imports and Exports, Uncategorized. You can follow any responses to this entry through the RSS feed. Both comments and pings are currently closed.
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