Wedoany.com Report-Apr 1, On May 3, as Australia approaches its general election, energy has become a key political issue. The conservative Liberal-National coalition has pledged to tackle rising power bills and potential gas shortages on the east coast through a gas reservation scheme. However, Shell Australia’s Chair, Cecile Wake, has expressed concerns about export controls, cautioning that they may not effectively reduce prices for consumers.
A 3D printed natural gas pipeline is placed in front of displayed Shell logo in this illustration taken February 8, 2022.
Wake argued that forcing more gas into the domestic market could deter investment and worsen shortages. She emphasized that export controls are not the solution; instead, the government should consider measures that truly conserve energy and stimulate economic growth, rather than redistributing resources.
The country currently produces more gas than it needs, with most of it contracted for export. Regulatory bodies have warned that the eastern coast could face a gas shortage by 2027 if these export agreements are not renegotiated.
The opposition, led by Peter Dutton, has proposed increasing domestic gas supply by 10% to 20% through uncontracted gas sold on international markets, with penalties for non-compliance. Meanwhile, the Labor party has focused on renewables but also expressed willingness to use emergency powers to manage gas supplies in times of shortage.
Wake criticized the politicized debate on energy policy, calling for a shift toward policies that encourage investment rather than redistributing an ever-diminishing resource. She advocated for making the pie bigger, not just redistributing it.
The upcoming election and the growing urgency of the energy crisis highlight the delicate balance the government must strike to balance conservation with economic growth.
"Rather than redistributing an ever-diminishing pie, let's make the pie bigger," she said.
