It seems Taylor has had yet another brain fart. Seems like he's pulling another smoke and mirrors job to me.
He already had to do a back room deal to convince NSW and VIC to open up onshore drilling. Both states were reluctant to do so. It would interesting to know the complete details of that story.
That said, Australia has quite a bit in gas reserves but it is either hard to get or stranded. The easy to get gas has already been produced or is already accounted for. So, I'm not sure where he is going to get all this extra gas from ?
It is well know in energy circles that the east coast of Australia is going to experience a gas shortage in the 2022-2025 period. AEMO is preparing for that now, years out. It's no secret.
Seeing as the international price for LNG has dropped, the domestic price should drop and that would enable gas fed businesses in Australia to get going again.
But, we've already been there. Once bitten, twice shy.
We used to have businesses that relied on cheap gas for heat and feedstock. Previous governments stood on the sidelines watching the east coast LNG industry get built without a domestic reserve in place. Hence, the domestic price went through the roof pushing those businesses to find alternatives or move overseas where cheaper gas supplies are available.
Post Covid, the gas price ( and oil ) will go up again.
Stranded gas reserves will remain stranded because the cost of getting it to market is the problem. This is nothing new.
Emergency oil reserves.
I think people are getting mixed up here. The idea of a strategic oil reserve is primarily in case of a world war or some other global catastrophe. The fact that the government signed up Australia's strategic reserve to be kept in the US is one of the dumbest things have ever seen. They traded a bit of cost saving for security.
Negotiating with the US ? Does he mean the Donald Trump US ? Taylor is a bigger idiot than I thought he ever was.
As to those wanting to build above ground tanks and store it here . By the time you get it done, the panic will be over. You will miss your window. All those oil companies that are taking it in the pants now will make you pay. It will be cheaper to go back to the existing system. It's not even a viable opportunity for a post Covid infrastructure job creator imv.
Want energy security ? Want an infrastructure project that creates jobs post Covid to kick start the economy ? A project that will create jobs for decades and benefit the economy for a century ?
Just continue on with the one we already have going.
The transition to renewable energy.
We are already committed to it. It is already underway. It is already planned. The issues are already well understood. It will provide energy security and national security. It will provide abundant cheap energy that few countries can compete with. It will make us an even bigger energy exporter.
No relying on oil storage deals with the orange buffoon that work in his favor and not ours.
