Benjamin well done with this missive. Here is another idea in the same vein. Why don't we ensure that we profit from you and put a special tax on your life earnings, not just HECS, an added amount and refuse you a passport?
Mate we export gas at silly prices and then charge the consumer a lot more! What about industry? So we rip off the consumer every which way and send jobs off shore.
Gee and you wonder why people like me would start ripping the proverbial out of Australia's education budget. Lets replace Benjy with an Indian or Chinese student who will apply themselves better.
How do you like those apples Ben?

...The usual socially destructive argument from the Capitalists....Anyone for crumbs?

Ah yes - the invisible hand of "efficient markets".
And the tyranny of "free" World Trade agreements.
Let them eat cake!

Apart from the many countries still being exploited under the yoke of old style colonialism and imperialism (Nigeria for instance -think Shell)would any other "advanced" country tolerate or even allow such a situation.

Yes, JBower this:

"Mate we export gas at silly prices and then charge the consumer a lot more! What about industry? So we rip off the consumer every which way and send jobs off shore."

Sadly it is so true.

The greed of the corporation in the persuit of profit knows no bounds. But what is the solution? Nationalisation of the assets where the government ( read tax payer ) foots the bill? Fix the domestic prices? I do not know.

For the domestic consumer the best strategy is not to use gas at all. The most energy efficient (7 star) houses do not use gas but highly efficient electric devices and alternate energy. The prevailing wisdom for new builds is not to use gas in the first place. We are in a state of transition where large numbers of people use gas but as time progresses there will be a transition away from the use of gas to the highly efficient electric appliances and the use of local solar energy. Remember that the energy retailers will start the same bleeding heart arguments about gas infrastructure to bump up the gas prices even further. Remember that if one has gas and electric energy supplies one is paying for two lots of infrastructure. Does one really need two types of energy at home?

As for industry disadvantaged by very high gas rices - No easy solutions.

Adding to my last post.

Gas delivered to the home will be a very expensive commodity but at least there is an alternative in electric energy where, barring all the political BS, the consumer will have slightly more control of their domestic energy supply.

Benjamin, are you sure there is no market failure?

The capital cost of the infrastructure needed to process, transport and degasify LNG is a huge barrier to entry. If Asian markets are indeed significantly and sustainably more profitable than Australian ones, that is surely evidence of market power leading to monopoly profit. If producers are unwilling to supply domestic markets at prices that would deliver “normal” profits, that is also evidence of market failure.

I also think you are wrong to say the WTO rules on export quotas would prohibit gas reservation. Every country I can think of with significant gas reserves takes some measure to ensure domestic markets are not overlooked – even the USA requires export permits for sales to many countries.

I’m normally at the dry end of the economic spectrum, but on this issue I’m not sure the free market is welfare-optimising.