Wall Street Journal Advertises Business Friendly Australia – Not!

In the last 24 hours, an article appeared in the Wall Street Journal – How Energy-Rich Australia Exported Its Way Into an Energy Crisis.  The by-line of the article was:

The world’s No. 2 seller abroad of liquefied natural gas holds so little in reserve that it can’t keep the lights on in Adelaide—a cautionary tale for the U.S.

For those who can’t get the whole article, here is a snippet:

Resource-rich Australia has an energy crisis, one that offers lessons for America as it prepares to vastly increase natural-gas shipments abroad.

Australia now exports so much liquefied natural gas, or LNG, it may overtake No. 1 exporter Qatar within several years. It exported 62% of its gas production last year, according to the BP Statistical Review of World Energy.

Yet its policy makers didn’t ensure enough gas would remain at home. As exports increased from new LNG facilities in eastern Australia, some state governments let aging coal plants close and accelerated a push toward renewable energy for environmental concerns. That left the regions more reliant on gas for power, especially when intermittent sources such as wind and solar weren’t sufficient.

Shortages drove domestic gas prices earlier this year in some markets in eastern Australia to as high as $17 per million British thermal units for smaller gas users such as manufacturers. On the spot market, gas prices have gone from below $1 in 2014 to roughly $7 today—well above the roughly $3 that prevails in the U.S.—causing havoc around the country.

In March, Australia’s largest aluminum smelter cut production and laid off workers because it said it couldn’t secure enough cheap energy. During one blackout last year, some families lost embryos in an in-vitro-fertilization clinic with no backup generation, according to a government-commissioned report. In February, some tuna fishermen watched catches rot because freezers shut off.

Does this not leave you with a feeling of pride?  I would suggest it warms the cockles of my heart, but the energy costs are too high to warm anything any more.

I wonder what is the greatest moral challenge of our time?  Is it climate change or is it voluntary energy and general poverty?

Good thing for Kev he lives in New York with their cheaper energy costs.

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56 Responses to Wall Street Journal Advertises Business Friendly Australia – Not!

  1. Gas prices effectively control electricity prices, despite however much cheaper coal may be.

    Something like 10% of all extracted gas is used by the industry to pump/process/compress gas for export. It’s a massive waste. Much of these tasks could and should be done using grid electricity. Just half of the gas saved and put on the domestic market would alleviate supply constraints and lower the price for gas and electricity in Australia.

  2. incoherent rambler

    gas prices have gone from below $1 in 2014 to roughly $7 today—well above the roughly $3 that prevails in the U.S.

    Says it all.

    More RET anyone?

  3. Infidel Tiger 2.0 (Premium Content Subscribers Only)

    Australia is a great illustration of the illusion of permanency. Only a decade ago we were debt free, in the midst of a resources boom, had abundant cheap energy and an assured future.

    Now we are Venezuela with uglier women and stupider politicians.

  4. Qley

    More RET anyone?

    Don’t Stop ‘Til You Get Enough

  5. Terry

    “the greatest moral challenge of our time”…

    …is allowing ourselves to be lectured by people without any.

  6. Zulu Kilo Two Alpha

    Now we are Venezuela with uglier women and stupider politicians.

    Harsh, but fair, Infidel Tiger.

  7. Nicholas (Unlicensed Joker) Gray

    Look- we should all have gone solar here in Australia, so all our natural gas is for stupid foreigners! Didn’t you get the memo?

  8. Rohan

    Nicholas (Unlicensed Joker) Gray
    #2438777, posted on July 12, 2017 at 12:23 pm
    Look- we should all have gone solar here in Australia, so all our natural gas is for stupid foreigners! Didn’t you get the memo?

    Walked past the boss’s 30kW government subsidised PV array on Monday just before midday. The inverter display were saying they were generating an awesome 300W a pop. That’s 3% of name plate capacity.

    Innovative!

  9. Rohan

    I should mention we have three inverters. One for each phase.

  10. Rohan

    Phase 1. Hoover all your tax money through crony capitalism.
    Phase 2. Hoover all the suckers money who buy into the scheme.
    Phase 3. Venezuela.

  11. gbees

    I speak to a lot of people who have come to the same conclusion. Politicians propagating the anthropogenic climate change fraud need to be rounded up, handcuffed, charged & prosecuted for fraud and treason. People are rightfully angry.

  12. Fuwckwits, we are governed by fuwckwits.

  13. The concern is, what isn’t the government, the media etc telling us? How bad is the actual situation across Australia?

  14. incoherent rambler

    Politicians propagating the anthropogenic climate change fraud need to be rounded up, handcuffed, charged & prosecuted for fraud and treason.

    That should read –
    Politicians propagating the anthropogenic climate change fraud need to be rounded up, handcuffed, charged & prosecuted pronounced guilty for fraud and treason and taken away for immediate execution.

    This is no time for half measures.

  15. Rabz

    Politicians propagating the anthropogenic climate change fraud need to be rounded up, handcuffed, charged & prosecuted for fraud and treason.

    Then hanged, slowly and publicly.

  16. incoherent rambler

    Correct Rabz. Besides we have a rope shortage.

  17. incoherent rambler

    Excuse me, I get irritable when I am cold.

  18. H B Bear

    More RET anyone?
    Don’t Stop ‘Til You Get Enough

    Don’t Stop ‘Til You’re Gough Enough more like it.

  19. Art Vandelay

    And we’re now going to double-down on the climate change stupidity:

    A “carbon tax” on cars that could push up the price of Australia’s most popular vehicles by more than $5000 has been proposed by the Turnbull Government.

    The Daily Telegraph has obtained the Government’s proposal that outlines the emissions penalties that will be slapped on car distributors who fail to meet the new fuel efficiency target.

    via Tim Blair.

  20. H B Bear

    Any global multi-national would have already had a big red X through Australia about a decade ago based on wage rates, IR laws and construction costs.

    Energy costs are just the latest installment. You only have to go back a bit over a decade and there was talk of building an LNG import facility off the US west coast. That was killed off on environmental grounds as Hollywood actors would have seen it from their coastal, cliff top mansions.

  21. jupes

    The WSJ misses the other half of the story: ‘climate change’ policies.

    That the government actually has a unit called the Department of Infrastructure and Regional Development’s Vehicle Emissions Team says it all.

    Two things we know with 100% surety about these clowns:

    1. They will cost money, and
    2. They will not change the weather.

  22. Infidel Tiger 2.0 (Premium Content Subscribers Only)

    Having bad politicians is burden enough. Having a destructive and pig ignorant media class who nod their heads in agreement with every treasonous action is the path to the abyss.

    How the fuck do you stop what is going on?

  23. Gazman

    The greatest moral challenge of our time is finding politicians with any morality.

  24. JB5

    Gotta make them sheckles, whatever the cost to lowly Mr Rosenbaum the baker, and his lovely wife the dressmaker.

  25. Viva

    Australia – run by fools advised by charlatans.

  26. Viva

    A “carbon tax” on cars that could push up the price of Australia’s most popular vehicles by more than $5000 has been proposed by the Turnbull Government.

    At least we’re meeting out Renewable Stupidity Target.

  27. Mother Lode

    The Web is forever.

    In the past knowledge of the stupidity and malfeasance of politicians might last until the last piece of fish was wrapped at the fishmarkets.

    Once the silly hoax has finished dying and these main-chancers, spivs, charlatans, and the rest of their ilk, are trawling through every document they can find to hide any connection with what will finally be known as the egregious abuse of the public that it has been, when they try to promote themselves and insinuate themselves into well funded roles, their real record should be proclaimed and propagated.

    Not people like Flannery or Gore, who are too publicly associated with the scam, but pollies, ‘scientists’, bureaucrats, and countless experts.

  28. jupes

    Not people like Flannery or Gore, who are too publicly associated with the scam, but pollies, ‘scientists’, bureaucrats, and countless experts.

    Al Gore has just released his second propaganda film and is currently touring Australia with it. He has been granted some (well chosen) soft interviews and is still being hailed as some sort of guru.

    On the other hand I don’t think this film will earn him a bar to his Nobel Prize and would be surprised if it sells as well as the first one. We have such a long way to go before this scam will end but have probably taken the first steps. The Donald of course is the great hope.

  29. ArthurB

    The stupidity of our political masters has no bounds. Under Juliar, we had a carbon tax which was supposed to make power more expensive, so that people would use less of it, but then there was a subsidy to the poor, who would have suffered from higher prices. Since we as a nation produce 1.5% or less of global emissions, our carbon tax would have made an infinitesimal reduction in global emissions, at a huge cost to the nation.

    If you think things are bad now, just wait until the CFMEU gets the key to The Lodge after the next election (which might come sooner than you think).

  30. Art Vandelay

    The world’s No. 2 seller abroad of liquefied natural gas holds so little in reserve that it can’t keep the lights on in Adelaide—a cautionary tale for the U.S.

    Don’t forget that we wouldn’t need all this gas if it wasn’t for the need to back up unreliable wind power with highly responsive gas generators.

  31. Tim Neilson

    One sad thing is that this article, in a supposed business newspaper, still assumes that it would have been a good thing to voluntarily forego export earnings on gas in order to provide backup for useless, expensive ruinables.

    Yet its policy makers didn’t ensure enough gas would remain at home. As exports increased from new LNG facilities in eastern Australia, some state governments let aging coal plants close and accelerated a push toward renewable energy for environmental concerns. That left the regions more reliant on gas for power, especially when intermittent sources such as wind and solar weren’t sufficient.

    Also, factcheck, they haven’t just “let aging coal plants close”, they’ve forced them into it with idiotic policies, and in one case even dynamited one.

  32. Myrddin Seren

    The world’s No. 2 seller abroad of liquefied natural gas holds so little in reserve that it can’t keep the lights on in Adelaide—a cautionary tale for the U.S.

    There is plenty of gas, plenty of coal, plenty of uranium and, as someone quietly alluded too the other day, possibly even reasonable supplies of crude oil.

    Now try and go to even drill to explore for the stuff almost anywhere.

    The problem is not the lack of resources for local and export demand. The problem is that Australia is increasingly BANANA – Land. Build Absolutely Nothing Anywhere Near Anything.

    Other than a harsh dose of Venezuelan reality – I honestly do not know what will stop comfortably well-off middle-to-upper-class folks everywhere sticking up objections, literal barriers, protests, lawfare you name it to anything that looks like it might scratch Mother Earth or the adjacent sea and air ?

  33. Neil

    It exported 62% of its gas production last year,

    Still means we keep 38%. If that cannot supply enough gas for 24M people most of whom use electricity the 62% would not be supplying much gas to many people. But we are the worlds second largest exporter apparently

  34. RobK

    It is frustrating. If only the government encouraged all economic forms of energy, each would find their niche and emissions would be down. Australia would maximize it’s resources and contribution to the world and itself. It would develop competency in a range of energy forms including coal and nuclear, along with niche markets for other forms as they apply. Decades ago Australia had the lead in solar HWS and even PV, agricultural windmills and even small “dunlite” wind machines. In WA there was Westwind. As good a small wind machine as any sold out to Ireland.

  35. Infidel Tiger 2.0 (Premium Content Subscribers Only)

    It exported 62% of its gas production last year,

    We have enough to coal to last ten thousand years.

  36. Duane Walker

    And then today the federal (I accidentally typed feral which was probably more appropriate) government wants to put a carbon tax on cars.

    There are just too many public servants with too much time on their hands. Why is the government always looking for ways to make things more expensive?

  37. Roger

    Does this not leave you with a feeling of pride?

    Sure does.

    We lead the world in political idiocy.

    Can’t cook your dinner with it, though.

  38. Neil

    We have enough to coal to last ten thousand years.

    Not sure what your point is. My point is that is we cannot supply enough gas to Australians with 38% of the production we may not be producing as much as we think. The article said we export 62%. How many people does that supply gas to? If we are the worlds second largest exporter there seems to be something wrong with the numbers

  39. Mundi

    This is the end result of institutionalised unionism and education.

    99% of common people have no basic education of what capitalism even is, or why they have high living standards, or how living standards increase.

    The overwhelming majority have come to think the economy is a zero sum game. That the problems of not having enough can simply be fixed by cutting down some tall poppy.

    Buisness, particularly large buisness, is held with the deepest of contempt in Australia. It’s is automatically assumed that corporates are evil and exploitive with no redeeming qualities. It’s wildly believed that they just happened to be in the position of over workers because they always had the money. Warning a wage is commonly referred to as being a slave in Australia.

  40. Mark M

    The comedy of errors continues …

    Australia needs Tesla battery to prevent summer blackouts, regulator says

    “My guess is that we may find that we regret some investment decisions or lack of some investment decisions somewhere down the track … I don’t think you need to be Einstein to predict that,” he said.

    https://www.theguardian.com/australia-news/2017/jul/11/tesla-battery-deadline-must-be-met-energy-market-regulator-says

  41. Confused Old Misfit

    A Blessed Day in the Life of a State Utility Commissioner or Jay Weatherill Unbuttoned

    https://www.masterresource.org/public-utility-regulation-state/blessed-day-life-state-utility-commissioner/

  42. Roger

    100 day battery deadline must be met?

    Oops.

    I seem to recall a leak:

    Didn’t the contract give Musk until December to complete the job?

  43. Wayne Hickman

    If we have run out of rope , we can hang em ‘ with piano wire ,takes longer …but stronger .

  44. Stimpson J. Cat

    Australia.
    Beautiful one day,
    Agile the next.

  45. struth

    Yet its policy makers didn’t ensure enough gas would remain at home. As exports increased from new LNG facilities in eastern Australia, some state governments let aging coal plants close and accelerated a push toward renewable energy for environmental concerns. That left the regions more reliant on gas for power, especially when intermittent sources such as wind and solar weren’t sufficient.

    Still a left wing writer.

    The point he is trying to make is that his own country shouldn’t be exporting their gas and oil, as it’s spoiling the whole global attack the socialists have going on the States and the west.
    He has no real argument, so he just says, hey be careful, look at Australia.

    He sees our production as some sort of government run project to extract gas and sell it overseas.

    Those gas providers have contracts and are companies.
    They have orders to fill.
    If the government needed gas, they should have bought some.

    They’re so treacherously incompetent that they closed down the supplies we were using (coal etc) and turned to gas after the shit had already hit the (wind farm) fan.
    This is a government made disaster visited upon the nation.
    Not only totally avoidable, there is no way this could happen without serious effort by government to bring this disaster upon us.
    All they had to do was nothing.

    A revolution is what is needed.

  46. JohnA

    Myrddin Seren #2438905, posted on July 12, 2017, at 2:23 pm

    The world’s No. 2 seller abroad of liquefied natural gas holds so little in reserve that it can’t keep the lights on in Adelaide—a cautionary tale for the U.S.

    There is plenty of gas, plenty of coal, plenty of uranium and, as someone quietly alluded too the other day, possibly even reasonable supplies of crude oil.

    SNORT!! Of course there is – crude oil is a renewable resource.

    Ever since the Club of Rome report “Limits To Growth” the world has had about 40 years’ worth of oil reserves, at current usage rates.

    After pumping a whole lot out from beneath the earth’s crust and using it, we STILL have about 40 years’ worth of reserves AT CURRENT USAGE and at prices from above USD100 down to about USD40.

    Just Google “crude oil renewable” for more clues.

  47. Australia, like an alcoholic, must find itself in the gutter and covered in vomit and shit before it can accept that it has a problem.
    At the moment Australia is wobbling along the footpath with a rumbling gutful of piss and farting itself stupid.
    There is still some way to go.

  48. Arky

    Zulu Kilo Two Alpha
    #2438776, posted on July 12, 2017 at 12:23 pm
    Now we are Venezuela with uglier women and stupider politicians.

    Harsh, but fair, Infidel Tiger.

    ..
    No that is not fair.
    Aussie birds are quite attractive on the whole.
    But they will fuck all your mates behind your back.

  49. Arky

    And empty your bank account before they leave you for one of said mates.

  50. Arky

    Conclusion:
    You probably need new mates.
    And a bird from overseas.

  51. Arky

    And how anyone gets it up after hearing that nasally Aussie accent is beyond me.
    I guess you get immune to it if you grow up here:
    “Oh yeah, Darls, root me, root me ya big bloody bastard”…
    It’s amazing anyone in this country is having any sex at all.

  52. H B Bear

    Wonder which is a greater policy failure – having some of the world’s highest property prices in one of the least densely populated continents or the world’s highest electricity prices while being one of the world’s largest energy exporters?

    Sometimes even being the Lucky Country isn’t enough when faced with weapons grade idiocy.

  53. Roger

    Sometimes even being the Lucky Country isn’t enough when faced with weapons grade idiocy.

    Donald Horne may have been a bit of a Lefty but his diagnosis remains true:

    Australia is a lucky country governed by dimwits who share its luck.

    But one day the luck will run out and the dimwits will ruin it.

  54. incoherent rambler

    Aussie birds are quite attractive on the whole.

    Spelling!

  55. Crossie

    Does this not leave you with a feeling of pride? I would suggest it warms the cockles of my heart, but the energy costs are too high to warm anything any more.

    This is such a petect paragraph that I just had to quote it.

  56. Habib

    I’ve finally worked out why successive governments bought then perservered with those shit Frog helicopters that have never worked.

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