Energy
security became a major political issue following a storm-induced blackout in
South Australia late last year. Instead
of the massive storm which knocked over the transmission towers being the
“villain”, the Prime Minister and his Energy Minister Josh Frydenberg blamed the state’s level of renewable (wind)
energy for the outage. They have
persisted with this version of events regardless of all the evidence to the
contrary.
In
the months since then politicians and others have had a great deal to say about
the national energy grid and its shortcomings and renewables and base-load
power. Ideology has played a very
significant part in the statements of many politicians. This of course means that truth has often
been twisted or completely ignored.
Recently
the focus has been on gas and a predicted gas shortage.
Despite
the claims of the Government and many industry players, there is no general gas
shortage. There is, however, a looming domestic shortage because most
of the enormous volume of gas being extracted is being exported.
The
Federal Government has rather belatedly recognised that, despite the fact that
Australia will soon be the largest gas-exporting country in the world, there
will be a shortage of gas for the domestic market. Moreover, the Government has realised that
domestic consumers are paying more for gas than consumers of Australian gas in
Japan - even after the cost of processing and transporting of the resource to
that country. This has become a rather
urgent matter for the Government because domestic gas prices and the
uncertainty of supply is hurting local industries. For a government that talks about jobs and
growth, permitting more of our dwindling manufacturing base going either “down
the gurgler” or offshore would be politically foolish.
As
the Prime Minister’s meetings in recent months with the major gas exporters
have not produced the cooperation he hoped for, he recently decided to take
further action. It is action that the
industry is unhappy about saying that this will discourage global investment, a
claim which is unsubstantiated. There
are others, including some in the Government, who believe that this
interference in the market is not justified.
What
happens elsewhere? Western Australia,
the one Australian state which had the forethought to realise that there was a
need to protect local interests, has a gas reservation policy[1]. Many other countries, including Canada, the
USA, Israel, Indonesia and Egypt, have various mechanisms to ensure that they
won’t end up in the situation that Australia is heading towards. In their rush to encourage foreign investment,
successive Australian Federal Governments failed to see that safeguards to
protect domestic gas supplies were needed in the national interest.
Prime
Minister Turnbull has stated that his measures will only be needed for the
short term because he expects that there will be further development of local
gasfields which can service the domestic market. He is referring specifically to NSW and
Victoria which have currently stopped unconventional gas mining. (There is an exception in NSW. Santos’ project in the Pilliga in the
north-west is currently going through the planning approval process.)
The
Prime Minister is one of many politicians and industry players who have weighed
in wanting the opening up of NSW and Victoria to coal seam and unconventional
gas mining.
Recently
Ian Macfarlane, the head of the Queensland Resources Council, and a former
federal Coalition Minister, criticised the NSW and Victorian Governments for
lacking the will to develop their gas resources in the same way that Queensland
has.[2]
What
Macfarlane either does not understand or conveniently ignores is that it is
what happened in Queensland as well as overseas in the USA and elsewhere that
alarmed communities in NSW and Victoria and generated the campaigns against CSG
and unconventional gas mining – campaigns that have gathered strength also in
the Northern Territory and the north-west of Western Australia.
In
his interview with Leigh Sales on ABC TV’s 7.30 on April 27 Macfarlane paints a
very rosy picture of the industry in Queensland [3]. He claims “irresponsible green activism”
stopped the industry in NSW. Blaming
the anti-gas campaign on the “greenie” bogey is convenient for many
conservatives but is far from a true reflection of the breadth of community
opposition to an invasive and polluting industry.
It
will be interesting to see whether the urging of the Federal Government and
proponents like Macfarlane encourage the NSW and Victorian Governments to
change their positions on gas mining. If
this happens, the reaction from those who see the industry as an unacceptable
threat to agriculture and the environment is easy to predict.
Hildegard
Northern
Rivers
5
May 2017
GuestSpeak is a feature of North Coast Voices allowing Northern Rivers residents to make satirical or serious comment on issues that concern them. Posts of 250-300 words or less can be submitted to ncvguestspeak AT gmail.com.au for consideration. Longer posts will be considered on topical subjects.
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