Thursday, October 29, 2020

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Home Issue 22 This crisis can't look to natural gas for relief

This crisis can't look to natural gas for relief

By ERWIN CHLANDA
 
Gas, the hoped-for get out of jail card for Michael Gunner’s record debt ridden NT Government, does not have a bright future.
 
Unlike the during the GFC, when massive spending on gas development prevented more serious problems for Australia, for the current crisis there is no similar fistful of dollars.
 
EnergyQuest Chief Executive Graeme Bethune (pictured) says Australian liquid natural gas revenue will be “smashed as affordability of gas field development to keep LNG plants full looms as long-term threat”.
 
He says total Australian LNG export revenue for 2019-20 is forecast at around A$50 billion and the impact of low oil prices will push 2020-21 LNG revenue down to as low as A$30 billion.
 
“Australian project deferrals have national economic implications,” says Dr Bethune.
 
“At the time of the GFC in 2009, Australia was just starting an LNG development boom.
 
“Between 2009 and 2015, the oil and gas industry spent $273 billion on development projects, mostly LNG.
 
“This was instrumental in Australia avoiding the worst of the GFC.
 
“Now in 2020, the Federal Government is again having to step in to stimulate the economy, with measures costing around $200 billion.
 
“Unfortunately, this time there is no accompanying surge in oil and gas investment and there is unlikely to be until oil prices improve.”
 
 
 

1 COMMENT

  1. If this prediction is correct, and I feel it is, the NT Government will have its credit rating even further downgraded.
    This means to the average NT citizen like taking a 40% pay cut.
    Try shopping with that pay level. We will need to tighten our belts alright.

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