Your intrepid correspondent has previously written about and quoted Professor Craig Pirrong from the University of Houston, but he has recently posted about the Australian election and Australia’s climate policies. Here he is, live from Houston Texas:
It’s amazing to see how stupidity knows no distance or no nationality and that Australia’s tale made it that far. Here is the Streetwise Professor:
Check out the logic. Australia closes its coal plants (highly efficient, reliable, and with a cheap source of fuel given Australia is a dominant coal producer), and replaces them with wind. Wind, being highly erratic, requires (given the closure of the coal plants) gas-fueled plants to offset the variability of wind output, and as a result gas is on the margin most hours in Australia. And Australian power prices are sky-high because . . . LNG exports reduce gas supplies in Australia, keeping the price of gas high.
You cannot make up this stuff.
Now remember, Professor Pirrong is an energy market EXPERT. EXPERT. And the Greens and Labor love to quote and refer to experts. Unless of course the expert’s advice does not accord with their world view.
The Professor also noted:
Given the track record (e.g., the high electricity prices that motivated this post), this was a target rich environment for Mr. Morrison and the Liberals. And it is evident that they put much steel on the target.
Well spotted. But what the Professor may have missed is that the Liberal Party has been in government for 6 years; this was not an election that replaced incumbents. And much of the folly the Professor notes occurred under the Liberal Government’s watch; including the Liberals signing up to Paris and taking a commitment to remain in Paris to the election.
Yes. Saturday’s result was a miracle. What will also be a miracle is if the Morrison Government takes the message and unwinds current policies.
As an addendum, TAFKAS was watching the evening news where the new (soon to be?) leader of the NSW State Labor opposition Chris Minns, was fronting the media. What was Minn’s big play? CLIMATE change.
It’s not sufficiently stupid for Australia to take unilateral climate action, but apparently having lost the recent last election, NSW Labor wants NSW to take unilateral climate action.
Yes Professor. You could not make this stuff up.