The Solution: Where does coal seam gas fit in?
Gas exporters and politicians have argued recently that Australia could fight against rising gas prices by ramping up the production of coal seam gas. However, no matter how much coal seam gas is identified and exploited in Australia, it could not significantly influence the global price. The problem of rising gas prices due to linkages with export markets would remain.
Australia is currently producing much more gas from conventional, non-CSG sources than it could possibly use domestically.
A gas reservation policy would ensure a portion of that gas stayed in Australia for domestic use, meaning there would be no reliance on coal seam gas.
New coal seam gas projects would still be possible, and potentially attractive, but Australia would always have enough gas from conventional sources.