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The Forum > Article Comments > At what price Gorgon? > Comments

At what price Gorgon? : Comments

By Rachel Siewert, published 21/9/2009

Gorgon gas - environmental concerns; selling off our precious reserves; and a large taxpayer bill for untested technology.

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I agree with most of these sentiments. Whereas politicians are now cock-a-hoop over LNG sales I believe it will prove short sighted within a decade. While the oil exploration lobby APPEA says we have 500 years of gas reserves ABARE has a more sanguine estimate of 65 years. I think domestic gas demand will rise dramatically for two reasons. First south eastern Australia's natural gas reserves are depleting and will need to be replaced by gas from the north west. Rex Connor anticipated this 30 years ago. Whether coal seam gas can replace natgas is unproven. Second I doubt Australians will take to electric cars, a four seater with a 40km battery range might cost $40k. I think natural gas vehicles with a 300km range will prove more popular. Yet another requirement for gas will be to back up lulls in the wind and solar generation that will be required under the 20% renewable energy target by 2020. We are not even close to being on track for that target so perhaps it is just more vaporware from Rudd.

On the Barrow Island CO2 escape guarantee it could be pointed out that the nuclear power industry has been criticised for the Price-Anderson act in the US. Here the government has promised to pay the bills for any damages but it has not been put to legislation. It could be pointed out that Barrow Island will use physical separation of CO2 a much easier problem to solve than the chemical method in 'clean coal'.

The federal government should formulate a 20 year plan for natural gas use in Australia. I suggest top priority goes to ammonia based fertiliser, CNG for transport, domestic heat and peak power balancing of wind and solar. Last priority goes to LNG export.
Posted by Taswegian, Monday, 21 September 2009 11:01:51 AM
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'The Greens have been opposed the location' Wow what a surprise. They consider Barrow island not suitable. Where would they suggest? Maybe the middle of Canberra.

'It is home to 24 species that are found nowhere else in the world,'
What a surprise? I am sure they could find some species in a sewerage pond not found anywhere else in the world. I wonder if any 'sacred' sites have been uncovered yet.

'At what price Gorgon' Thankfully even Mr Garrett is sensible enough to know that the benefits will far outweigh the propaganda of the Greens.
Posted by runner, Monday, 21 September 2009 11:45:26 AM
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Perhaps the author should take a look at our current account deficit,
which is as high as that of a banana republic at around 6% of GDP.

Fact is that Australia is broke and needs the money, we can't live
off more borrowings forever.
Posted by Yabby, Monday, 21 September 2009 12:19:49 PM
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Entirely agree with your article. Without a doubt Western Australian Politicians of all/any persuation are raw material development enthusiasts with really no serious thought of the long term damage to the environment, or for that matter, of the future reasonable domestic requirements of the ordinary tax paying citizen. This development boom or bust mentality purely for political gain will most surely end in the ordinary citizen's quality of life diminished if not destroyed, his/her cost of living greatly increased, whilst the multinational exploiters are sitting back enjoying the profits
These multinational company's, in the long term, are the only people who will really profit. The rest of us, as happened in the recent mining boom, will just have to sit back and pay the cost of the boom through increased charges and taxes and material/housing shortages.
If development of these gas fields is absolutely necessary, then firstly, it must be orderly preventing undue inflation of goods and services, secondly, utilised for the betterment of the whole Australian population through universal provision of cheaper energy including vehicular transportation, then and only then, any surplus be sold to overseas markets.
Remember if this potential energy is left in the ground it certainly does not deteriorate, just increases in value. Also of equal importance, this potential energy is not owned by Australian politicians to be used at their will and whim, but is owned equally by every tax paying resident of this country.
Posted by Jack from Bicton, Monday, 21 September 2009 3:33:53 PM
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My concern is that this another example of the policy stated by the
Chinese Premier;
"We will burn all your coal and then burn ours".
China is not running around the world tying up resources for fun.
Their politicians know what is coming and are taking steps to protect
China.
Our dopey politicians cannot even speak of the peak that dare not
speak its name. If ever there was a subject that needs to be rammed
down the politicians' throat it is peak oil.

We are going to need that gas in a big way.
As oil prices rise our balance of payments will send us completely broke..
We will not be in a position to pay pensions, hospitals and schools.
Natural Gas will give us time to make the transition to whatever
comes next.
Posted by Bazz, Monday, 21 September 2009 4:05:13 PM
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Right on Rachel.

Also, fossil fuels are yesterday's technology. They won't pay the bills in a decade when everyone except the undead knows global warming is trashing the planet.

There's already a $6 billion photovoltaic industry in China - using Australian technology. That will grow rapidly, but we won't get the jobs and export income because our moronic politicians are captive to present interests.
Posted by Geoff Davies, Monday, 21 September 2009 4:27:35 PM
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