The Australian argues that state governments should lift moratoriums and bans on exploration and development of new gas projects.
Australia has gas, gas, everywhere, yet users of this crucial fuel face a supply and price crisis. This nation is about to become the largest exporter of liquefied natural gas and is known to have unexploited fields of natural and coal-seam gas across much of the eastern seaboard, yet a lack of supply has forced prices to double during the past year.
The production from Queenslands huge LNG projects is locked away in export deals, some domestic gas helps fill those contracts, existing domestic reserves are running low, and moratoriums and bans by state governments prevent exploration and development of new gas projects. It is just another way in which a nation blessed with readily accessible and cheap energy resources is shooting itself in the foot, burdening businesses and consumers with rising costs.
Victorian companies are facing crippling cost increases, leading to job losses. The problem is widespread, imposing pressures on a variety of businesses across the country. Given the need to stimulate economic growth to boost national employment and prosperity, and help with budget repair, it is almost criminal that we are squandering our advantages; turning our energy resources edge into a competitive disadvantage.
Tasmania also has some controls in place and in South Australia the Liberal opposition is taking a 10-year fracking moratorium in the prospective southeast of the state to the next election. It is high time politicians recognise they have an obligation to take policy decisions that provide businesses and consumers with reliable and affordable energy.
Aside from cost and convenience, the bonus with gas, of course, is that it is the cleanest of the carbon-based fuels. Green activists should encourage its use as the low-emissions transition fuel between coal and renewables.
