Reserve Our Gas Flyer

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Why gas prices are about to explode.

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commented 2014-11-08 09:57:17 +1100
I’ve been corresponding with Qld’s minister for energy and water back and forth for much of this year on this very topic. His office repeatedly offer me links to various studies (including the Grattan institutes) to explain away, the Newman Govt’s stance not to implement a reservation policy of any kind. As Aust. is a federation of states, it has become apparent to me that each state has control of their own gas reserves. Aside from this, I’ve noticed that each of the reports offered to me by minister McArdles office (including the Gratton’s) all have links to and/or have been commissioned by, guess who… The gas companies themselves! Interesting that these reports are considered “independent” by the minister don’t you think? Also interesting that minister McArdle (Qld minister for energy & water supply of which I refer) appears to blindly accept the arguments put down in these “independent reports” as the only solution. That is, that a gas reservation policy will stifle research, development and investment in the gas industry and thus put upward pressure on domestic gas prices! What The?! I replied to him on this that, believing this rhetoric from the gas industry reports, as such, is shear ignorance to the fact of it being the massive emerging and lucrative export market in Asia which has fuelled all the R & D by foreign and Aust. companies wanting to extract our gas. So having a domestic reserve policy of some sort will have minimal to no effect. I can’t remember exactly but, one of these reports made comparison to the WA situation which apparently caused gas prices to rise a few dollars over a decade ago because of that state having “imposed” a reservation policy on it’s gas. Here is an excerpt from and email I received from Minister McArdles office ;
BEGIN EXCERPT – The ERA’s conclusions based on the ACIL Allen report state:

“The ERA believes that the DGR policy should be rescinded as soon as practical. The costs that this policy imposes on the Western Australian economy far outweigh any benefits that it is believed to have. At the very least, the DGR policy has the following negative consequences:

It reduces the incentive for investors to invest in the gas industry in the longer term, reducing future levels of gas available for domestic or international use.
It perpetuates the existence of industries that may not have a comparative advantage in Western Australia at the expense of investment in other industries.
It inhibits dynamic efficiency and technological innovation. For example, the policy artificially depresses domestic prices, which discourages domestic gas users from investing in technologies to lower or substitute their gas consumption.
It increases reliance on subsidised gas prices, leading to over consumption of the resource.” END EXCERPT
Sounds like spin to me since I’ve been educating myself on the subject. I asked his office to explain how it is any others business how efficiently industry uses the gas it pays for and how this is even considered in the equation! I have put it to the minister that such arguments (as found in any of the reports whose findings argue against a DGR
which seem to be the only ones used by the minister) fail to consider that the billions of dollars invested in any of Aust. gas has been due to the export market value & nothing to do with the fact we have no DGR policy in place thus far. I also explained to them that each report they have offered me fails to explain their logic on their arguments against DGR policy and how it is, the minister cannot see it for himself? I still await the latest response on this from the ministers office.

Someone with a suspicious mind could conclude there to be some “vested” interests hidden somewhere, especially when considering what I’ve just laid out here. Only using industry commissioned reports and no others… Mmmmmm. Not exactly unbiased now, is it?
I am very interested in this subject and if able to help in any way, let me know.

commented 2014-10-09 22:22:51 +1100
commented 2014-10-09 21:38:28 +1100
Australia gets raped of it’s natural resources again and it’s residents get screwed again!
commented 2014-10-09 20:27:47 +1100