Straya loses big as gas cartel war profiteering returns
The gas cartel is busy distracting you with complete garbage. Labor needs to answer how its gas reservation scheme will work in times when gas is abundant, Origin Energy chief executive Frank Calabria has warned, or risk killing off incentives for future supply. Labor has proposed the biggest intervention in Australia’s gas industry in decades, The post Straya loses big as gas cartel war…
Labor's proposed gas reservation scheme, which would force LNG exporters to supply up to 20% of their volumes to domestic customers, is facing criticism from industry leaders. According to Origin Energy CEO Frank Calabria, the policy poses a significant risk to the country's resource sector and could lead to a withdrawal of investment.
Woodside, another major player, has also expressed concerns, warning that it might abandon a crucial drilling campaign if the legislation becomes law. The gas cartel is set to benefit greatly from the current energy boom, with profits expected to reach new heights, even with Brent and JKM prices at $100 and $30, respectively. Labor's plan could potentially lead to a tax hike, with the potential annualized windfall for local LNG revenue reaching $30 billion, considering the current prices.
The story suggests that the gas cartel will continue to expand production, with low-cost production staying in Australia and higher-cost gas being exported. The cumulative revenue loss since the cartel's inception is estimated at $160 billion. Critics argue that the gas cartel's war profiteering should be a topic of concern, as the policy could force low-cost production to remain in Australia while allowing higher-cost gas to leave the country.
Written by urgent.news from MacroBusiness's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
