Article by Eric Worrell
“…Australia has abundant coal and gas resources and renewable energy, so why are energy costs so high…”
Rich in resources, but Australia’s energy costs triple and manufacturers suffer
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“[The US is] Good for manufacturing, they have cheap energy and have good natural gas supplies and reserves. This is one of the most attractive investment markets today,” he said.
mr gandhi said One way Australia can solve this problem is to increase the supply of natural gas.
but For many Australian manufacturers it's too late.
“If you start investing today, it will take three to ten years to bring in new natural gas resources… [and] Manufacturers will not survive [that long],” he said.
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Plastics manufacturer Qinos went into administration last year due to a lack of reliable gas supplies and rising costs.
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The federal government did not respond to ABC's questions about the decision, but a spokesperson issued a statement Energy Minister Chris Bowen blamed the coalition for the gas shortage.
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Former stockbroker and fund manager Bruce Robertson, now an independent energy consultant, said Australian manufacturer 'bleeds out' Due to high energy costs.
He blamed the gas export company that operates the Gladstone export terminal in Queensland.
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Liam Wagner is Associate Professor, Curtin University Energy Transition Institutelooking at new technologies in electricity markets and how natural gas prices work in eastern states.
he thinks Manufacturers should look at alternative fuels like hydrogen Rather than hoping for government intervention.
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Learn more: https://www.abc.net.au/news/2025-01-13/gas-energy-costs-threaten-manufacturing/104788984
The fact that no one in government or academia seems to understand the problem, let alone have viable ideas to address it, is bad news for the remaining productive sectors of the Australian economy.
Imposing natural gas reserve or export quotas on natural gas companies would only last a few years at best. Natural gas companies will respond to the increased risk of disruptive government intervention by redirecting new gas field development elsewhere. Why gamble on Australia's hostile energy regulatory environment when gas companies can participate in Trump's energy renaissance?
As for hydrogen, I don't want to bother answering that question. If you really believe this is a possible solution, feel free to ask other WUWT commenters why hydrogen is a bad idea.
Packing up and moving to the United States or Asia may save some businesses. Although bankruptcies are on the rise, it may already be too late for many businesses.
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