A federal bid to control the price of gas has sparked a furious response from energy producers who fear an open-ended regime that lasts beyond a temporary price cap unveiled on Friday, with analysts claiming the Labor plan is a “declaration of war” on the industry.
Bowen said opponents of the plan were seeking “wartime prices” for gas after the Russian invasion of Ukraine but this meant they were claiming they needed those extraordinary profits for their industry to be viable. Credit Suisse analyst Saul Kavonic said the proposal was “infinitely more Draconian” than the price caps and presented a much more severe market intervention than anyone in the industry had been contemplating.“This may be taken as a declaration of war on the gas industry on the East Coast,” he said.
“There will be the usual gas industry hyperbole about negative impacts but we have heard that before when both Western Australia and Queensland put in place various forms of domestic gas reservation ... none of those bad outcomes occurred and investment has continued to flow.” Woodside on Friday said the $12-a-gigajoule gas price gap would prevent the market from “functioning as it should” with buyers and sellers negotiating an outcome that benefits both.
Analysts say the institutionalised price will prompt producers to deliver greater volumes into the spot market and be a disincentive to bringing new domestic supplies online, elevating the threat of blackouts.“Labor has crossed the Rubicon with this gas policy, with further expansive interventions inevitable to address the many unintended consequences ... as the government moves to a command-and-control structure for east-coast gas without the regulatory capacity to deliver on it,” Kavonic said.
CroweDM NickToscano1 Their fault for price gouging.
CroweDM NickToscano1 There will be a declaration of war on Albo and Bowen if this goes wrong.
CroweDM NickToscano1 How much shame do you feel each time you publish these ridiculous misleading headlines?
CroweDM NickToscano1 Well if foreign companies did not own and control our banks and resources than none of this would be an issue. I say put Australia first and cut ties with the USA ffs!
CroweDM NickToscano1 getting the wholesale price down seems to be impossible for labor...........crazy
CroweDM NickToscano1 If energy companies want to go to war with the australian people good luck.
CroweDM NickToscano1 Yay… if true…
CroweDM NickToscano1 It’s not greed. It’s supply and demand. the world is gagging for our coal and gas while out govt actively undermine them. Cap price means lower production, means higher prices for longer. Also domestic market with be under immense strain for supply. Direct result = blackouts.
It’s our gas. Shut up or pay a resource tax.
CroweDM NickToscano1 Who would you rather declare war on China or gas exporters paying little or no tax?
CroweDM NickToscano1 So it should... In Lower Hunter suburbs around Maitland and Newcastle, we hear a 90 wagon coal train go past our suburb every 15 minutes. Are you telling us that we should pay high electricity prices for putting up with the noise? Bowenchris . Super profits tax them.
CroweDM NickToscano1 Greedy fossil fuel executives vs the Australian public/voter
CroweDM NickToscano1 'could' and the proof of ur hypothesis
CroweDM NickToscano1 The gas cartels & their investors have already declared a price & misinformation war on the Australian public. Fact 1. 80% of Australian gas is exported or used to power the LNG trains that prepare it for export & is free of price caps.
CroweDM NickToscano1 A declaration of war on the industry WTF could go wrong...Labor lunacy 🤦♂️
CroweDM NickToscano1 The SMH is like a Murdoch rag, but even more smug and annoying.