Australia's Natural Gas Dilemma
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- Опубліковано 24 вер 2022
- Australia is the world's leading exporter of liquefied natural gas or LNG.
In 2020, the country exported $25 billion worth of natural gas to markets in Asia.
Interestingly enough, the country also occasionally suffers from natural gas shortages in their own markets at home. It is a demonstration of the country's sprawling size, bountiful natural resources, and complicated energy politics.
In this video, I want to talk about how the land down under became one of the world’s biggest natural gas exporters.
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There are Telegram scam bots replying to comments in here. They are disgusting. Please report them as spam if you see them.
How does the spam posts get removed? Do you do it or an algorithm in UA-cam? I report spam posts they go away but when I come back to the original comment, the spam posts are still there. Ty
I find it amazing that a "tech" company like Google has not been able to implement some kind of bot control. It has gotten to the point where I no longer look at the comments.
I always try to report bots, but hope that Elon Musk’s engineers may implement some sort of universal anti-bot mechanism developed within his new Twitter company.
Anyway, thanks for the ever essential content!
'miles'? 'fahrenheit'? in 2022, really? It is not the dark ages anymore, use standard units of measurement.
CO2 is not a pollutant 🌲🌿🌱🪴🍀 photosynthesis H2O +CO2+sunlight/shortwave radiation= The source for on earth, 2 or 3 times more CO2 = faster and bigger planet growth, less water need for the plants.
It's funny. It happens so often with your videos that I see a title like "Australia's Natural Gas Dilemma" and think: "aah. I really don't care about that topic. I'll watch something else. ".
But I still click, and am immediately captivated for 15 minutes by a topic that has basically no connection with me, but gives me insight in the complexities of our huge world.
Thank you!
If you use any type of fossil fuel, this project probably effects you by giving lower prices, unless you are in a country under sanctions.
@@alexjohnward that's of course true. But it's still not one of the topics that jumps to mind as something of immediate interest (even though it is).
Love this channel
You're interconnected to global demand energy supplies, whether you like it or not. Even if boring to you, you can't escape it even if you decide not to own a car when living in an inner city area because of ample available public transport. Most urban public transport in Australia is subsidized anyway, except the state government doesn't tell you that. So a bus or train ride requires energy (either provided by diesel, natural gas or electricity grid). Yes, your emissions are lower per capita than if you drive a car (per kilometre) or got rideshare, but it's not zero. Also, buying your food from the supermarket (even if you walk to one); how did it get to there? How much energy and fossil fuel did the farmer invest (in diesel and fertilizer) to grow your food? All modern cities would collapse within a week without the energy and food input network.
Well said
I just click on his videos without thinking anymore … its always informative and interesting
Yo! I'm Australian! Complicated energy politics is an understatement! Thanks for the video :)
To a lesser degree in the US, but politics is why Texas is not connected to the national grid in the US in any useful way (they can neither receive nor produce amperage of consequence in emergencies).
It is complicated - so complicated that this short video has to leave a lot of those complications out. But perhaps two complications could have been mentioned. The northwest shelf development is closely tied up with foreign policy - basically part of it arguably belongs to the neighhbours (Indonesia and Timor-Leste). The second is that, even more than the US, state politics greatly complicate any attempt at national policy on gas. The differing states have very different interests, and the power to further those interests.
@@kenoliver8913 nws is a thousand km from indo and even further from Timor. They are not even slightly involved.
It's not complicated at all. Politicians give oil companies favours so that oil companies give politicians board seats when they retire.
Luckily WA politicians are owned by mining companies, big gas users, instead of oil companies. So WA gets affordable gas while the rest of the country exports gas for zero benefit and gets massively higher energy prices.
Massive understatement, unfortunately
The domestic gas reservation policy for Western Australia was very difficult to achieve. The companies developing the project demanded no reservations or they would not proceed. The WA govt demanded reservations or they would not approve it. The companies walked away, but ultimately they came back and accepted. The lobbying against domestic reservation has been intense and bitterly resisted by the global gas companies, which is probably why they didn't get it for the eastern states coal seam projects. It is easier said than done.
Putting in a gas reservation policy is easy. It’s just that the government doesn’t have the balls to stare down the resources industry or they are corrupted by money from the resources industry.
@@David-lr2vi Yes agreed. I'm in Perth and the WA Government's gas quarantine policy is well understood here, cannot understand the Eastern State governments thinking with having almost all coal seam gas exported via Gladstone.
Shoulda just nationalized the fields instead
@@TheGreatAtario absolutely, there is no real reason why Australia can't fund, build, and run energy projects around Australia. Extreme capitalism stops any attempt for Australian governments to own money-making infrastructure.
The Liberal National Party squeals its communism for Australian governments to have state-owned companies, yet they are quite happy to sell to the middle kingdom state-owned companies.
Governments in New Zealand are shareholders in Australian infrastructure, as are many other countries governments, yet the Liberal National Party constantly opposes it here in Australia.
@@jarrad347 the eastern states signed an agreement that allowed the federal government to administer
Remember the Howard government argued against the WA gas reservation policy and at the same time approved eastern export terminal at Gladstone with no reservation, actually with the ability to mop up all gas production if desired
Anyone changing the rules now will be painted with a sovereign risk brush
Good video! I worked as a rigger on two of the biggest gas refineries in australia over nearly 7 years and it disgusts me that we barely have enough for domestic supply. Future generations of Aussies have been sold out ….
I didn't watch the video, but I assume it is a cynical thing various countries do, where when a product is booming, they might cause domestic scarcity because selling it internationally is so lucrative that the economy conmen in government consider it wasted on the own people. (Which is iconically capitalist, and Australia is another USA-vassal.)
I agree the government is asleep as usual we are being ripped off we should not be paying what we do
That's strange! The country produces the natural gas for export but doesn't have enough for it own uses.
100%!
It can be broken down into a few issues.
1) The Western market is quite small and extremely isolated.
2) Because of its isolation the only way to get the LNG from the west to the east is very expensive pipelines.
3) Exporters can basically fight any proposal for a pipeline due to this cost and can therefore export excess LNG to more profitable markets. Also worth noting is that because of Australia's size and scarce population rural political parties have massive power over a large swath of land meaning very few politicians and interest groups can influence a massive portion of the country.
4) When the WA government negotiated the contracts they did not move on the requirement to reserve x% for local usage meaning at the price peak gas was close to 20 times more expensive for the eastern states than for WA.
5) The gas produced in the eastern states can be 100% exported to foreign countries basically forcing Australian families and businesses to compete on a global market rather than a local one.
6) Asia has a massive heavy industry that generates massive profit for those markets compared to Australia which relatively speaking has no heavy industry meaning the choice is quite clear. Do you want to sell gas to heat homes and cook food or do you want to sell gas to produce goods that are of massive global importance? The choice for exporters is clear.
The state I live in is slowly phasing out new gas connections and as new environmental standards come into play I see Gas in Australia becoming less and less important. Renewables and electrification are the future. It would be nice to see the government lean on gas exports just a bit, not a lot but just a bit. Just a few % could be reinvested in a) smoothing over the transition (ie making gas cheaper for local families) b) improving the grid to actually support electrification and c) building large-scale renewable power plants.
When I build my new house I plan to go gasless and I think a lot of Australians over the coming decades will too.
Followed you for quite a while now, really appreciate this insight into the gas issues of my country, it’s not covered much elsewhere, great video
It was really enlightening
I doubt its a gas issue. There are many reservuas and existing gas production facilities, and building pipelines and compressor stations is technically not impossible Its a political career issue. It's about them. A country or continent could make energy for its own industry cheap, so that at least some industries can compete on the worlds market. The cheap gas and other hydrocarbons it self can insulate the entire country from energy cost inflation...
With every wave of immigration the energy consumption increases and that should justify pipelines going east, just for domestic use. No pipeline basicaly creates a shortage and halts commercial use and value adding to other products which need energy.
Its like having cheap cars in Germany, because they make them there. Its all back to front because of politics
You go alright Mate, I feel the same as Moritz, as an operator at the Karratha gas plant I thought "not much in this video for me" but clicked anyway & you immediately had me hooked! Great historical insights that I was not aware of. Just a small correction the NWSV(KGP) cost around 47 billion in total(over approx 30 years) & the Gorgan plant on Barrow island was in the vicinity of 42 billion(was initially costed at 25 Billion). These are loose figures as KGP continues to hoover up billions in refurbs & new infrastructure & Gorgan had extensive rework to the propane coolers(kettles) post startup. Browse to KGP is back on the agenda & the shananagins have restated WRT negotiations between state & fed governmants & the resource owners. Hope we the people don't get hoodwinked ie Tax concessions & the 20% domestic gas reserve in this last ditched effort to get it off the ground(try No. 4 I think it is). For a while Browse looked to be in Federal control & the WA state royalties & reserve was lost but for 2 rocks that protrude out of the water at Scott reef proved it was a state asset, amazed that they did not try to blast them below the water line.
Yeah I installed those kettles with a 400 tonne manitowoc crawler. 325 tonnes each. Then 3 days later pulled them out again because the surveyors set the heights wrong lol. Then reinstalled them again. Typical swing on Barrow island lol
yep got the dont come monday 10 yrs ago...good $$$$$$ while it lasted.
Western Australia also has a separate electricity grid, due to the vast stretch of desert separating it from the rest of the country.
AND the fact that WA has 3 people 2 dogs and a few camels :)
@@siegfriedsassoon5071 then they all fly back to the eastern states or even a 3rd world country like bali after 2 weeks because WA is a shit hole
You should mention W.A.'s electricity grid is PUBLICLY OWNED, not privatised like in the Eastern states. That's why they have so many issues over there with being ripped off by their suppliers. They were promised cheaper electricity if they supported privatisiation, L.O.L. how well did that work out for them ????
@@itchyvet the national power grid is a failure, and a complete joke!
This was really well reasearched. Funny to see you digging up the old regulatory approval docs.
Fun fact about the east coast LNG ramp up - there was a period of time where the coal seam gas production was progressing well, but the LNG facilities were all running late (three mega projects at the same time in one state...), anyway, for a time Queensland had $0 gas because the coal seam gas producers couldn't just switch off a tap. This spilled over into electricity markets as all the gas peakers decided to burn the free gas for easy profit, also collapsing electricity prices. As soon as the first ship loaded up on LNG the glut was over.
Really appreciate the time you take to add subtitles in your videos. Thanks a lot for that🙏🙏🙏
Yay, another Aussienometry video!
Another fascinating and well-researched video on a topic I knew nothing about before watching. I always enjoy your videos, Thank you!
Now you know less of the truth than before.🤔
Another excellent video! Most informative! 😃
What's interesting is that the international media doesn't really cover Australia as a potential source of new LNG during the gas crunch.
It just seems we are not on the radar as a global LNG export powerhouse.
Because they are focus on Europe, especially Germany itself. Australia covers the Asian-Pacific market and rarely exports to Germany.
LNG is stupidly expensive, moreso to transport over multiple oceans next to proximity friendly gas pipelines.
One way or another Europe is truly screwed for the next few years and I say this as a tru blue aussie. Also Labor recently took over and they are full of CCP puppets so all this cheap gas will likely only benefit Indonesia or some other power near us that gave Washington DC the bird over today's dramas.
Ausfalia doesn't sell it cheap. You lose a lot of gas moving it, bottling it, shipping it
Well, it's only really been since 2017. Given that the last 2 years people have been distracted, it's not surprising that the facts haven't sunk in yet.
Japan has allow some redirection of its LNG to Europe so someboby out there knows
Australia's per capita energy consumption ranking is 18th. Your ranking is total energy consumption.
Really well researched and presented video as always
Fantastic well informed video. Well done
Excellent video, well researched and presented!
incredibly detailed and interesting video!
Another spot on report. Thank you very much.
Really great video and in general love all content from this channel. I've learnt a lot!
A great watch, I remember sitting on a plane headed to Barrow Island in the early 90's, I was a contractor heading up there to service some equipment, I struck up a conversation with a guy sitting in the next seat who happened to be a senior manager in WAPET, I had asked how much oil they pumped there, he said the amount of oil they pumped was small and insignificant to the amount of gas they had there, he lamented that at the time they didn't have a market for it!!! Now if I had had a crystal ball I might have made my fortune LOL.
Another awesome episode, thank you!
In Melbourne my Gas bill has gone up 300% matching or overtaking my electricity costs, there are blackouts due to gas powered generators turning off because the cost of Natrual Gas has gone up 500% and the power company are not willing to lose money as electricity pricing are capped. The Business Friendly liberal government has sold out Australia to the highest bidder and resource lobby at the cost of it's citizens. It's not really complicated when all of our resources are shipped overseas with long term contracts in place.
Self sufficiency in resources only works when the government is in control of the resources.
Energy is a national security concern. It has no right to be private. It's like roads.
Really appreciate the analysis! Im working in mining and thinking of switching to gas. You got yourself a subscriber homie
Excellent summary!
WA really is positioned very well for the future. Huge natural reserves, stable weather, a very high number of sunny days, a largely barren coastline hammered by offshore winds. We just need infrastructure improvements because right now, everything else is a disaster. We have plenty to spend 6 billion on for sure and we will probably need every last cent of that to fix the issues.
It’s going to be the new California. Hopefully it’s not going to turn into slums like the one in the United States.
fantastic recap of the AUS LNG situation. It should be required viewing for Australians.
A well presented program.
Aussie here. I’m impressed by the quality of your vids. Great job!
Another Aussie here who is disgusted by this deceitful rubbish that stinks of propaganda for the oil and gas industry. No mention of the destruction of forty thousand years of aboriginal art to build these billions of dollars worth of plants. Nor do they mention that these companies have used every trick in the book to avoid paying any taxes for years. For example Qatar comes second to Australia in exports of gas but gets thirty billion dollars more. No mention either of the massive contributions to global greenhouse gas emissions except for under estimated effects of methane emissions by a factor of four.🤷♂️🌏🇦🇺
Great informative video.
Excellent video!, thanks
Excellent video. The gas reservation policy here in WA, whilst probably not the most economically efficient, has been on balance good for the state. Gas production on the whole has been great for WA more generally. The Eastern states IMHO stuffed up by not doing something similar and then compounded the problem by banning most forms of gas exploration and production (looking at you NSW and VIC). That then leaves them in the situation they're in now, which is bad. A pipeline from WA to NT or QLD is a costly and borderline impractical undertaking that I'd be very surprised if it ever happened.
14:57 Prelude LNG is *a single floating facility*. en.m.wikipedia.org/wiki/Prelude_FLNG …and look at that share!
thanks for the video , very good review
As someone who works in WA oil and gas industry I found this a very interesting video. Thanks
Just a little tip with how to pronounce some Australian names. Like everything else in Australian English, we love to shorten words. Melbourne is pronounced Melb'n, Brisbane is Brisb'n and Canberra is Canbra
Ask Canadians about Trono
@@AlphaGeekgirl We also have a Toronto here in New South Wales, it's usually referred to by the locals as "Tronno maaaaate".
Great video!
Miles??? Fahrenheit??? Since when does Australia use those? I would assume your info sources come from Australia so no need to convert to Imperial.
When I was in Australia in early 70s, the country still used British imperial system and the story of Northwest shelf began in 70s.
:D
his audience is majority american
@@sanuthweerasinghe7825 One way to add an international audience is to include metric. Oh, wait. America should rule the world thanks to our God given exceptionalism. I keep forgetting. 😱
@@kamolhengkiatisak1527 Began, yes, but it continued well past conversion to metric. Check and mate. 😇
First time watching your channel. You have a new subscriber. I am only 5 mins into it. From and O/S Australian.
Very interested into energy. Thank you !
Thanks for such a thorough breakdown and analysis. I've played music at a lot of the camps that serve these projects here in WA so it was interesting to learn more about them.
I enjoyed this post. Am I correct or incorrect in saying that part of the problem of lack of access for domestic Australian consumption has been due to us being locked in to long term export contracts which now hamper rapid re-deployment of supply to satisfy domestic demand? Good post.
Recently the east coast has prices have risen over 10x more than the west coast due to local laws and policy in WA.
Luckily electricity prices have only risen marginally compared to the rest of the world.
I’m in Melbourne 🇦🇺
Silver lining, terrible pricing is accelerating demand for rooftop solar.
@@hurrdurrmurrgurr
Aussieland is close to China (THE producer) and was never subject to EU anti-sustainability tariffs that were only scrapped in 2018.
Surely everybody and their cat already has solar panels in Australia?
Not true. You also need to be specific which price you refer to - spot, long term contract, residential. Residential - marginal increase 9%? Spot - about 3x.
Power is going up since de regulation. Just like every thing else.
A great video. What a lot of research.
The erstwhile 'gas-fired recovery' of 2020 was one of the most hilarious, and troubling, federal initiatives -- everything was indicating renewables, but with a government board stacked with gas executives, all that (our largest opportunity) was ignored.
The party of free market had to intervene after no one was interested in investing, using public funds to build gas stranded assets, and suspiciously spending money before checks and balances to incentivise exploration.
We have a history of selling our resources and buying it back more expensive too
Luckily that's over
Oh man. That's real stupid of Australia.
@@Moses_VII Well, virtually everyone apart from the government of 2013-2022 and vested interests were against what they were doing.
We were embarrassed on the world stage, and it was shown by everyone ostracising our leaders.
Now we have a new government who is supportive of our opportunity as a renewable energy superpower, which is good.
This channel is really getting up there with Wendover and the likes for top notch current events and economics
Well done !👍
I've worked on the Rankin Platform that is featured in the 2nd pic. That's Woodside's Rankin A platform and the north and south bridges.
How do you turn out so much information in such a short span of time?!
I've spent a few weeks at Gorgon for a job before. Two interesting facts about the project. The refinery is built on a class A nature reserve. Getting on the island requires extremely strict environmental quarantine. They also have 3 C02 liquidfication and ground injection lines in the project. So far I think it is only used to pump back the CO2 generated from the gas extraction. As with everything in the LNG business there is controversy and rumors abound.
As I understand it, the CO2 is pumped back into the ground strategically to attempt to stabilize the pressure lost from the natural gas that's extracted - mainly to prevent underground cave-ins which could possibly affect the underground well caps where the natural gas is being extracted from. Someone correct me if I'm wrong, this is second-hand information.
@@m0rthaus The C02 that is pumped back in is mostly C02 that came out with the gas extraction. If I understand it correctly they are pumping the C02 back into older empty island based reservoirs while the natural gas is sourced from offshore rigs. While your theory makes sense for oil. It makes less sense for gases since the C02 will simply mix with the natural gas making refinement more difficult.
The fundamental problem starts with absolutely basic utilities like energy and water being sold to for-profit entities to turn it into a casino. Here in Australia, we were just a few years behind California/Enron on that, for the same customer-skewered outcomes.
LNG is -162 C not F. -260 F in American...
Other minor quibble natural gas / LNG is really just methane and some ethane. LPG are your heavier gasses like butane, propane and heavier condensate.
Very accurate history though :)
Great work, keep it up. Btw, I think the rank from the table in 12:34 is for Total electricity consumption, not the electrical consumption per-capita. I sorted out the table based on the "Average electrical power per capita expressed in kwh" column and get rank 18, almost the same.
It's laughable to hear that Australia faces energy insecurities because of.. regulatory constraints. Regulations should be in place to make our lives easier, not harder.
Another bit of complicated energy politics is South Australia -- basically, the Feds ridiculed them for years and then took credit for their success.
They blamed renewables for everything, even when blackouts were the fault of transmission infrastructure or something upstream.
Now they have some of the cheapest (and reliable) energy, due to being the largest renewable giga-scale network in the world, though the rest of supply (40%) comes from gas in the meantime.
The ACT has a higher proportion of renewables (and rules to prevent profiteering), so is unaffected by current prices.
I produce plenty of "natural gas", but I never thought to export it!
Thanks for the idea!
taco bell FTW 🌮
I live in Australia. When natural gas came to town about thirty five years ago it was a big deal, everyone hooked up, in particular it became the main heating source displacing heating oil and resistive electric heating.
Now as a home heating source it is significantly more expensive than the heating oil it replaced. It is also being displaced by electrically powered heat pumps.
Around here most people are disconnecting from the gas network and going purely electric with heating based on heat pumps.
It is now common for homes to have 5-8KW of rooftop solar and a residential battery in the 10-15KWH range that can coast through most outages and even provide standalone residential power.
Outside industrial use, natural gas has little future in Australia. It has priced itself out of the market, being often simply too expensive, prone to extreme price variations as well as unreliability.
Industrial use is a separate issue, but many big industrial concerns are planning the switch to hydrogen with several new hydrogen plants under construction.
That said Australia has considerable untapped reserves of natural gas but too often these will involve fracking. The problem is the most prospective locations are in the recharge zone for important natural aquifers, particularly the great artesian basin, that is a lifeline for communities in the interior of the country. Any contamination risk to the great artesian basin is a no no.
Since you are on the topic. What do you think about guyana's natrual gas situation? The gas to shore project. 🤔 Would be nice if you can do a video on Guyana oil boom.
You removed my comments. Why?
@@nomadhgnis9425 UA-cam arbitrarily deletes or hides comments. It can vary by account, and in some cases most comments don't show. It's very frustrating.
@@realtalk6195 ok. I see. UA-cam is getting out of hand.
Thanks for clarifying facts that are not generally known domestically 🇦🇺 It helps understanding a lot of our complacency.
You can get as much LPG from Australia as you can arrange for the logistics, AND we will not use the cash to wage a War of Aggression on you. Great selling point right there!
I live in a small country in the north-east of Europe called Estonia, where we use oil shale as our primary energy source, and we make lubricating oil, gas for ships, heat water and make electricity from it. Just as you told me, I thought that shale was the same as oil shale, as far as I know Estonia and China are the only countries that use it as an energy source.
@ 12:34 the spreadsheet showing Australia in 19th place is ranked on total energy consumption, not per capita consumption
15:00 factual errors. Curtis Island plants: first qclng (BG / merged with Shell), second gong (Santos +, 6 months after qclng), thrid - aplng (conoco and origin, several months after gong). I think late 2015 first drop at qclng.
As a Western Australian i was talkign to my Eastern Australian uncles and they are livid at the reckless export of natural gas by Eastern states as it has left Eastern consumers with very high electricity and gas prices. in Western Australia, where domestic use was reserved, electricity and gas prices are relatively unaffected by global market fluctuations, thus allowign domestic users to be more secure in their energy needs.
In Western Austrlaia my energy bills are significantly less than my Eastern relatives... so much so that it is almost embarrising.
Maybe ive gone mad, but when he said propane 1:57 i swear i heard hank hills voice
l was surprised to see Australia lost the top spot as the biggest coal exporter, but then it has gone back and forth between Australia and Indonesia for many years. It was also surprising to see that while we weren't the biggest exported in terms of weight, we still were in terms of energy production and export value due to the large difference in quality between Australian vs Indonesian coal. I am left wondering if part of the big increase in Indonesian exports was re-exported Australian coal trying to avoid the unofficial sanctions in China...?
Yes they were selling AU coal.
Some of the graphics are a little old… the ‘proposed’ Pluto NWS Interconnector started up in March.
amazing thing, streamlining production & use would save alot, w/o restriction.
12:33 slight correction this list is ordered by total electricity consumption per year, not per capita
yes canada should be #1 as most used per capita .
but canada gets 60% from hydro and only 8% gas and 8% coal . rest is nuclear and solar
12:30 i think you meant electricity consumption _overall_, not per capita.
I caught this too. Didn't seem quite right
Yes, Australia is the 18th when using per-capita ranking. Well, it's not too far away from 19th anyways...
Australia operates the Prelude Floating Liquid Natural Gas Platform, which produces 3.6 million tonnes of LNG annually.
3:43 It would be useful to also add these kind of measurements in SI units
Especially as all Asia, including Australia, uses metric rather than imperial.
Miles are one thing, most people probably have some concept of scale here, but Fahrenheit really came out if nowhere :D, especially since the rest of the video uses SI?!
Imperial measurements, for all people tuning in from Liberia and that one other country that still uses a 'system' that was already outdated in the 1700's. 😆
@@nvelsen1975 It's outdated I guess but we will still keep using it if only to annoy people like you lol. Still even this Taiwanese guy who probably only uses SI has to use imperial units for just us and ignore the 200 other countries. That makes us feel pretty good 😀
@@greatwolf5372
Oi, chill out, or I'll measure your height by stamping all over your face since it must be done in feet.
I mean, seems painful to me, I ussually use a tape measure, but apparently you guys use your feet somehow.
Just to add a point, while methane has a larger heating effect it stays in the atmosphere for a shorter time frame, about 8-12 years with CO2 staying in the atmosphere anywhere from 20 (but generally much longer) to potentially thousands of years. This is a common piece of information missing when talking about Methane. It's also important in reference to other things like cattle.
Yes ,don’t forget flatulent cows from your fossil fuels apologist talking points list.🤔
an excellent presentation, up to your usual high standard. please let me add some further personal recollections.
the underlying and primary cause of the "dilemma" issue is the large difference between domestic gas pricing (before LNG in Gladstone was a thing) and the the price that countries such as Japan and China are able and now willing to pay.
even before construction commenced on the three large east coast LNG projects, informed commentators such as Richard Cottee, at the time CEO of Queensland Gas Company, was warning that domestic gas users were about to face world parity pricing and should prepare for price increases of 400% and more. Sadly, few of the existing gas users were willing to protect their futures by entering long-term gas purchase contracts.
another part of the problem of relative scarcity of gas for the eastern market is the reluctance of the states of New South Wales and Victoria to approve extraction of coal seam methane for politico/social/greenie reasons. Those states have large reserves of suitable on-shore coal containing large amounts of coal seam gas but are unwilling to allow development. Until recently, significant natural gas was produced by off-shore facilities within Bass Strait, and piped onshore to Victoria for local use, but those offshore supplies (which were largely out of sight and therefore out of mind) are declining.
The small capacity of the few interstate pipelines means that as a shortfall in one of these states due to rising demand, cannot be easily met by transferring coal seam gas from another more progressive state such as Queensland.
The State of Queensland has released more exploration areas for development, but only on the proviso that the gas produced must be used for domestic consumption and cannot be exported. Even though the developers who have taken up those areas are likely to sell their gas for lower prices that then LNG companies receive, they are still succeeding in increasing supplies of domestic gas for the Queensland market, as quantities required for the domestic market in Queensland are smaller and these companies avoid the high cost of constructing LNG plants and export terminals.
The states of New South Wales and Victoria have not yet been able to make such a bold policy decision.
That says pretty much everything I wanted to say on the subject. Thank you.
Yes I worked in Karatha/Dampier at stage 1 and we could have been energy independent and world low carbon footprint and manufacturing leader because of a very clean and low cost energy supply but now our energy prices are among the highest in the world and manufacturing has gone over seas and we are threatened with carbon taxes, we have been sold up the creek, look at last 40 years of Japan LNG prices and Australian domestic prices have been between 4 to 10 times that of Japan, so think what that means, after buying and transporting with specially built tankers their gas prices have been consistently lower than our domestic price and only recently under Turnbill did we get a domestic reserve !
At 6:19, you say The oil was discovered 270 miles of Australia's coast in Scott reef. Wouldn't that fall outside Australia's EEZ(200 miles)? Would it be legal to extract gas from there?
I knwo that nautical miles aren't the same lenght as "normal" miles, so maybe 270 miles is below 200 nautical miles (?)
Or maybe if the reef is inside Australia's continental self it was conceded an EEZ-extension like Portugal and Rusia have
Well, some more remote oil/gas fields are being disputed. However, in the specific case of Scott reef, no other country is closer to it than Australia so not really an issue for this one.
@@Dani-Nani It's the second. - EEZ extended They did a deal with Indonesia which the Indonesians came to regret.
@@kenoliver8913 You sure you're not thinking of the Sunrise gas field and East Timor?
@@kenoliver8913 Australian EEZ is 360km while Scotts reef is only 300km it lies well within Australian EEZ
Keystone XL was sold as an oil pipline, not a means of shipping LNG. The environmental concerns are drastically different. Most importantly it would be made to sell Canadian oil to the world market, leaving the US to bear the risk of spills while seing none of the energy.
"Like the Salmon" is my favorite phase ever
I caught “prime and delicious” coal seam gas or something. 😅
12:33 The table is sorted by total consumption, not per capita.
good video
The Burrup Peninsula has lots of ancient archaeology on it ... and a big refinery
Geological exploration with more technical expertise increases every year and with each year it seems a re write of who has what from the previous years and in this , it seems with every passing year that Australia has more and more of what was thought it had less of, the fact that it is the oldest land mass rising about the sea should be logical cause to pursue more actively what really is there.
Man i need to be honest with you. I’m not really interested in any of the topics you make videos about. But it’s still not boring enough to be annoyed and you have such a calming voice. I always use your videos to fall asleep. In fact: It’s in my sleep routine to watch your videos :D
So thank you for letting me fall asleep every single day on time xD
I don't really like to draw with crayons but they taste so darn good. I just can't eat one 😂
A great view of the Australia gas market but I would've also noted that the states of the East Coast of Australia don't have a domestic gas policy like Western Australia that results in those states exporting all their gas.
12:34 Australia electricity consumption per capita seems to be 4th, the table on screen shows the total electric consumption per country, nor per capita
4:08 What are the other ways to transport natural gas?
There is an error on your energy per capita statement. That chart just shows total energy consumption for each country.
Around 12:30 you state Australia is ranked 19 in the world for consumption of electricity per capita... whilst the table shows it's 19th in world in TOTAL electrical consumption (and Australia ranks 4th on the clip that you've shown)...
Going to the wiki page and sorting by power consumption per capita, you'll find Australia ranks 11 (at least on 2022-10-10)
"Like the salmon, it travels..." hilarious mental picture, thanks.
😂
Hi and thanks from Australia. Ironically, we still burn coal in the east instead of gas; and renewables have been left aside for far too long.
Question though: Couldn't there be a pipeline between Telfer in WA and Mereenie in NT? It'd still be 1000 km long and probably run through Aboriginal lands, but would close the loop to the eastern pipelines.
No offence, but I had a giggle at 12:06: Brizz-burn and Mel-bun. 🤭
Kogan power station is new and it’s new filters don’t put much into ozone. Much cleaner. It’s right next to mine. There 2 of them .
I like your Hank Hill impression when you said propane.
15:32 Kangaroo country?! 😂 The first time I've heard my country referred to as such!
American energy security interests prevented the Australian government from developing energy projects that are actually benefitial for Australia instead of the US.
It is still the case today.
Indeed.. 🐘
pic shown at 5.04 is a aluminium smelter,portland victoria..... other wise nice vid
Western Australia? We read about that country growing up here in Melbourne. Sounds pretty cool.
it can cause problems to have a little land per capita, but being as big as Australia can also be difficult, Greenland is a ram now, there are no roads between the cities
Hey friends. What is the current Australian policy on cars using CNG/LNG? I know the government paid for all the taxis to be converted, but still don't see vehicles using it.
California force/subsided conversation of diesel vehicles to CNG from a pollution mandate. They also are collecting home compost and are converting it to methane. Again, not widely published m.
This excellent presentation would have been even better had standard modern units been consistently employed.
I want to see an asianometry vid on electricity costs and their impact on economies. Australia used to have the highest electricity costs in the world, where people would use candles instead of electricity. They fixed some of that, but they say its still high. if they have so much nat gas and room for solar panels why is their electric so high? Howabout china, where the govt is working with people and companies and shutting down steel mills to let offices have electric during the day, and europe where electricity is ridiculous prices, but the government foots the bill for the ridiculousness for the most part