Is the evil emperor worth listening to on energy? Yes!
Conducting the interview, Paul Whittaker – a former editor-in-chief of The Australian and the current chief executive officer of Sky News Australia – asks Mr Murdoch: “Do you think the net zero targets are achievable, and can Australia and other first world countries get the balance right between concerns for the environment and climate and maintaining a competitive economy and affordable energy?”
Rupert Murdoch has revealed his predictions about the future of the publishing industry and has suggested a path forward for the world’s climate change strategy in an exclusive interview with Sky News Australia.
Mr Murdoch replies: “No, I think we’re absolutely on the wrong track.
“I’m not a climate denier. I might be a sceptic of some of the things that are said. But you’re going to have blackouts … the cost of living will go up all over the world.
“But there are things to do, abolish coal and have natural gas which is cheap and clean.
“In Australia, we’re throwing away gas. I just think we’re damaging ourselves competitively and foolishly.”
Ain’t that the truth. I wish the Murdoch press would prosecute the case more vigorously. The print media is terrible on energy.
For instance, why does nobody ever explore why the US has comprehensively outdone Australia in the energy transition thanks to a strategy of coal-to-gas switching?
Why are we closing coal-fired power instead of converting it?
We all know the problem is the QLD LNG export cartel, which controls the local gas market by over-exporting, and this wrecks the security of supply for would-be gas-fired power.
Why does nobody ever mention that LNG shipping contracts are broken and renegotiated all of the time? Here is a list I wrote in 2018.
- Edison renegotiated RasGas contract on price and volume in 2012.
- PGNiG renegotiated QatarGas contract on volume in 2014.
- Petronet renegotiated RasGas contract on volume and price in 2015.
- PetroChina renegotiated QatarGas contract on volumes in 2015.
- JERA renegotiated RasGas contract on volume and price in 2016.
- Pakistan renegotiated QatarGas contract on volumes and price in 2016.
- Japan declares multiple contracts illegal owing to “destination clauses” in 2016, following Europe from a few years earlier.
- Petronet renegotiated Exxon-Mobil Gorgon contract on volume and price in 2017.
- Woodside Pluto contracts renegotiated on price in 2017.
- Kogas renegotiated Woodside contract on price in 2018.
- GAIL renegotiated Gazprom contract on volume and price in 2018.
- India renegotiated Cheniere and Dominion contracts in 2018.
Since the Ukraine War, breaking and renegotiating LNG contracts has become a near-weekly occurrence.
If the Australian Government domestically reserves 15% of the gas cartel volumes, they declare force majeure and get on with business:
Even better, apply a $6Gj export levy, which collects all revenue above that price from the gas export cartel and crushes the local price at the same time.
This will instantly put the Australian energy transition back on track, deliver a massive budget windfall while curing Australian inflation, and do virtually nothing to hurt export partners that don’t need the gas!
It will also be immensely popular with Australians.
Gas is the answer. Politicians be damned.
