LCK insitu gas value/cost project on the...

LCK insitu gas value/cost project on the radar
https://unauthorised investment advice/energy/got-gas-high-gas-prices-are-starting-to-bite/

We are all feeling the pain from high energy prices. It’s hitting us at the pumps, it’s hitting us in the shops and it’s now poised to put 170 people working at Incitec Pivot’s Gibson Island fertiliser plant out of their jobs next year.

The bad news is that it is not going away anytime soon and could quite conceivably get worse if the imminent Northern Hemisphere winter is even slightly colder than usual.

Here’s a bit of history why.

The current energy crisis started due to low inventory levels of natural gas, strong demand and declining production that was coupled with poorer than expected performance from renewable energy.

This created a perfect storm that whipped up a frenzy, sending gas prices in Europe and Asia rocketing well past the equivalent price of oil, which led to frantic buying of spot LNG prices, only for supplies of the supercooled gas to thin out as well.

Buyers in both countries then turned to oil, which was already seeing the impact of increased demand and OPEC’s stubborn reluctance (some say inability) to increase production.

The hunger for energy has also seen increasing use of thermal coal, which has caused much gnashing of teeth from the green lobby.

Australia’s feeling the pinch

While Australia’s position as a gas exporter has insulated us from the worst of the Northern Hemisphere’s relentless hunger for gas, it has not done anything to alleviate sky high oil prices, which is why you’re always wincing whenever the bill for topping up your tanks appears.

Insulated also does not mean immune.

While gas prices in Western Australia have remained fairly stable thanks to the state’s domestic gas reservation policy, the same isn’t true over in the East Coast where market forces mean that gas prices are several times higher.