Latest news with #Woodside
The Age
a day ago
- Business
- The Age
Gas is a gamble – and WA just doubled down
Premier Roger Cook says gas is good for the world, 'even if it doesn't make a good hashtag or look good on a bumper sticker.' It's a revealing remark – especially as Woodside's North West Shelf, Australia's largest gas project, has just been approved for a life extension out to 2070. That decision alone will lock in billions in gas-related investment for decades to come, shaping Western Australia's economic trajectory long after most of the world has moved on from fossil fuels. The message is clear: WA is doubling down on gas. But for many West Australians, this is starting to feel like a gamble with high stakes and few winners. It might be good for energy giants and shareholders, but for households, small businesses, and the state's long-term prosperity, the risks are mounting. We've been here before. When the mining boom collapsed around 2014, the pain wasn't limited to the Pilbara or Goldfields. Perth's housing market slumped, fly-in fly-out jobs disappeared, and state revenues fell off a cliff. The entire economy had been hitched to global commodities – and when prices crashed, so did WA's growth. Now, the same pattern is repeating. WA is a gas heavyweight – exporting 47 million tonnes of LNG last year and supplying around 60 per cent of Australia's gas. Yet despite its vast reserves and a 15 per cent domestic reservation policy, local households are still facing higher gas prices, driven not by local scarcity but by exposure to international markets. Since 2020, wholesale gas prices in WA have tripled, and consumers now face some of the highest retail gas prices in the country. If one of the world's most gas-rich jurisdictions, backed by a domestic reservation, can't deliver affordable gas to its own people then the system clearly isn't working in the public interest. It's a glaring contradiction: vast local supply, a legislated carve-out, and yet rising costs for the very people the policy was meant to protect. International energy markets are growing more volatile, not less. Global demand is softening, supply is ramping up, and price swings driven by conflict or speculation are becoming the norm. Key buyers like Japan are cutting back their LNG imports whilst on-selling around half the gas we sell them, a sign that demand is not what it once was. China's LNG imports have fluctuated significantly since 2020. And yet, instead of planning for a diversified future, WA is entrenching its reliance on gas. The approval of the North West Shelf extension to 2070 isn't just a regulatory tick, it's a signal to markets, governments and financial institutions that WA intends to stay in the gas game for the long haul. That decision will direct capital, infrastructure and political energy toward propping up a sector that faces deep structural risk – not just from climate constraints, but from basic economics. There's another economic danger. Every new dollar committed to gas is a dollar not invested in emerging industries like clean energy manufacturing, critical minerals processing, green hydrogen, green ammonia or green iron. While other states and countries build competitive advantage in renewables and advanced manufacturing, WA is backing an industry that's losing momentum and market certainty. This is the real missed opportunity. WA has what it takes to lead in the clean economy: land, labour, minerals, world-class ports and skilled workers. But for too long, successive governments have prioritised resource exports over building sovereign capability. The result is a lopsided economy, vulnerable to global shocks, and increasingly disconnected from where the world is heading.
Sydney Morning Herald
2 days ago
- Business
- Sydney Morning Herald
Gas is a gamble — and WA just doubled down
Premier Roger Cook says'Gas is good, like it or not.' It's a revealing remark—especially as Woodside's North West Shelf, Australia's largest gas project, has just been approved for a life extension out to 2070. That decision alone will lock in billions in gas-related investment for decades to come, shaping Western Australia's economic trajectory long after most of the world has moved on from fossil fuels. The message is clear: WA is doubling down on gas. But for many West Australians, this is starting to feel like a gamble with high stakes and few winners. It might be good for energy giants and shareholders, but for households, small businesses, and the state's long-term prosperity, the risks are mounting. We've been here before. When the mining boom collapsed around 2014, the pain wasn't limited to the Pilbara or Goldfields. Perth's housing market slumped, fly-in fly-out jobs disappeared, and state revenues fell off a cliff. The entire economy had been hitched to global commodities—and when prices crashed, so did WA's growth. Now, the same pattern is repeating. WA is a gas heavyweight—exporting 47 million tonnes of LNG last year and supplying around 60 per cent of Australia's gas. Yet despite its vast reserves and a 15 per cent domestic reservation policy, local households are still facing higher gas prices, driven not by local scarcity but by exposure to international markets. Since 2020, wholesale gas prices in WA have tripled, and consumers now face some of the highest retail gas prices in the country. If one of the world's most gas-rich jurisdictions—backed by a domestic reservation—can't deliver affordable gas to its own people, then the system clearly isn't working in the public interest. It's a glaring contradiction: vast local supply, a legislated carve-out, and yet rising costs for the very people the policy was meant to protect. International energy markets are growing more volatile, not less. Global demand is softening, supply is ramping up, and price swings driven by conflict or speculation are becoming the norm. Key buyers like Japan are cutting back their LNG imports whilst on-selling around half the gas we sell them, a sign that demand is not what it once was. China's LNG imports have fluctuated significantly since 2020. And yet, instead of planning for a diversified future, WA is entrenching its reliance on gas. The approval of the North West Shelf extension to 2070 isn't just a regulatory tick—it's a signal to markets, governments and financial institutions that WA intends to stay in the gas game for the long haul. That decision will direct capital, infrastructure and political energy toward propping up a sector that faces deep structural risk—not just from climate constraints, but from basic economics. The danger isn't only environmental. It's economic. Every new dollar committed to gas is a dollar not invested in emerging industries like clean energy manufacturing, critical minerals processing, green hydrogen, green ammonia or green iron. While other states and countries build competitive advantage in renewables and advanced manufacturing, WA is backing an industry that's losing momentum and market certainty. This is the real missed opportunity. WA has what it takes to lead in the clean economy—land, labour, minerals, world-class ports and skilled workers. But for too long, successive governments have prioritised resource exports over building sovereign capability. The result is a lopsided economy, vulnerable to global shocks, and increasingly disconnected from where the world is heading.
The Age
2 days ago
- Business
- The Age
Gas is a gamble — and WA just doubled down
Premier Roger Cook says'Gas is good, like it or not.' It's a revealing remark—especially as Woodside's North West Shelf, Australia's largest gas project, has just been approved for a life extension out to 2070. That decision alone will lock in billions in gas-related investment for decades to come, shaping Western Australia's economic trajectory long after most of the world has moved on from fossil fuels. The message is clear: WA is doubling down on gas. But for many West Australians, this is starting to feel like a gamble with high stakes and few winners. It might be good for energy giants and shareholders, but for households, small businesses, and the state's long-term prosperity, the risks are mounting. We've been here before. When the mining boom collapsed around 2014, the pain wasn't limited to the Pilbara or Goldfields. Perth's housing market slumped, fly-in fly-out jobs disappeared, and state revenues fell off a cliff. The entire economy had been hitched to global commodities—and when prices crashed, so did WA's growth. Now, the same pattern is repeating. WA is a gas heavyweight—exporting 47 million tonnes of LNG last year and supplying around 60 per cent of Australia's gas. Yet despite its vast reserves and a 15 per cent domestic reservation policy, local households are still facing higher gas prices, driven not by local scarcity but by exposure to international markets. Since 2020, wholesale gas prices in WA have tripled, and consumers now face some of the highest retail gas prices in the country. If one of the world's most gas-rich jurisdictions—backed by a domestic reservation—can't deliver affordable gas to its own people, then the system clearly isn't working in the public interest. It's a glaring contradiction: vast local supply, a legislated carve-out, and yet rising costs for the very people the policy was meant to protect. International energy markets are growing more volatile, not less. Global demand is softening, supply is ramping up, and price swings driven by conflict or speculation are becoming the norm. Key buyers like Japan are cutting back their LNG imports whilst on-selling around half the gas we sell them, a sign that demand is not what it once was. China's LNG imports have fluctuated significantly since 2020. And yet, instead of planning for a diversified future, WA is entrenching its reliance on gas. The approval of the North West Shelf extension to 2070 isn't just a regulatory tick—it's a signal to markets, governments and financial institutions that WA intends to stay in the gas game for the long haul. That decision will direct capital, infrastructure and political energy toward propping up a sector that faces deep structural risk—not just from climate constraints, but from basic economics. The danger isn't only environmental. It's economic. Every new dollar committed to gas is a dollar not invested in emerging industries like clean energy manufacturing, critical minerals processing, green hydrogen, green ammonia or green iron. While other states and countries build competitive advantage in renewables and advanced manufacturing, WA is backing an industry that's losing momentum and market certainty. This is the real missed opportunity. WA has what it takes to lead in the clean economy—land, labour, minerals, world-class ports and skilled workers. But for too long, successive governments have prioritised resource exports over building sovereign capability. The result is a lopsided economy, vulnerable to global shocks, and increasingly disconnected from where the world is heading.
The Guardian
4 days ago
- Business
- The Guardian
Green groups fear business sector will dominate debate at Chalmers' roundtable at environment's expense
Environmentalists fear they are being shut out of the economic debate after peak nature groups were overlooked for invites to Jim Chalmers' reform roundtable. The current list of 24 invitees to next month's summit features only one representative from the environment movement: former Treasury secretary Ken Henry, in his capacity as chair of the Australian Climate and Biodiversity Foundation. In contrast, Australia's four peak business groups – the Business Council of Australia, Australian Chamber of Commerce and Industry, Australian Industry Group and Council of Small Business Organisations of Australia – will each be represented as Chalmers attempts to build a broad consensus on economic reforms to lift living standards. An invite has also been extended to Ben Wyatt, the former Western Australian treasurer who now sits on the boards of gas giant Woodside and miner Rio Tinto. Basha Stasak, a nature program manager at the Australian Conservation Foundation (ACF), said the views of green groups were critical to the debate given the link between environmental protection and economic prosperity. 'Over quite a long time now, we've seen nature as something that we can exploit and extract from, and [have] not considered the cumulative impacts of that, and not considered the importance of protecting nature to maintain a prosperous economy,' Stasak said. Sign up for Guardian Australia's breaking news email 'We will not have that perspective in this [roundtable] debate. We will not have a strong perspective about why protecting nature is so essential for our economic prosperity.' Henry this week drew a direct link between nature and the economy, casting a long-awaited fix to federal environment protection laws as the 'most important' reform the Albanese government could pursue to lift stagnant productivity growth. Stasak said there would be a 'lot of pressure' on Henry and independent MP Allegra Spender, another nature advocate invited, to use their presence at the forum to speak up for environmentalists. Guardian Australia understands Henry secured an invitation to the summit because of his expertise in tax reform, as well as his environmental advocacy. On Friday, Chalmers announced another 13 invitees to the three-day event in Canberra, including Henry, Spender and Wyatt. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion The Commonwealth Bank of Australia chief executive, Matt Comyn, the NSW treasurer, Daniel Mookhey, the Tech Council of Australia boss, Scott Farquhar, the ACCC chair, Gina Cass-Gottlieb, and the respective heads of the departments of prime minister and cabinet and Treasury, Steven Kennedy and Jenny Wilkinson, were also among the latest batch of invitees. More invitations will be issued as the summit's agenda is finalised, Chalmers said, while noting that 'we can't invite representatives from every industry or organisation'. In a statement to Guardian Australia, Watt did not directly address the green groups' omission from the roundtable but said the forum was a 'fantastic chance to achieve important reform' – including to the environmental approvals process. Watt said he spoke with the ACF, WWF-Australia and Greenpeace as recently as Friday afternoon as part of his planned rewrite of federal nature laws. 'I look forward to more productive discussions in the future as we prepare to pass this important legislation,' he said. The Greens assistant climate and energy spokesperson, Steph Hodgins-May, said the decision to invite a Woodside board member – Wyatt – showed the depths of 'Labor's toxic ties to the gas industry'. Wyatt was appointed to the Woodside board less than six months after quitting WA parliament in March 2021. In May, the gas giant was granted provisional approval to operate its North West shelf gas processing plant until 2070, subject to strict conditions. The federal government is still awaiting Woodside's response to the draft decision, which was originally due 10 days after the 28 May ruling. Guardian Australia sought an explanation from the offices of Chalmers and Watt for Wyatt's invitation but did not receive a response. The roundtable will be held on 19-21 August.
Reuters
6 days ago
- Business
- Reuters
Australia says World Heritage listing to protect Indigenous carvings
SYDNEY, July 12 (Reuters) - Securing World Heritage status for Australia's Murujuga rock art will help protect the ancient Indigenous carvings, located in an industrial hub, the government said on Saturday. The art, thought to be 50,000 years old, lies in a peninsula that has gas and explosives plants, highlighting the sensitive relationship between the nation's Indigenous culture and its economically vital resources industries. UNESCO granted World Heritage status to the site in the Burrup peninsula on Friday after a "tireless nomination process", started in 2023, said Environment Minister Murray Watt. "The Australian Government is strongly committed to World Heritage and the protection of First Nations cultural heritage," Watt said in a statement. "We will ensure this outstanding place is protected now and for future generations." Peter Hicks, chair of the Murujuga Aboriginal Corporation, said the UNESCO listing was a means to protect the "extraordinary landscape". The peninsula in the northwest of mineral-rich Western Australia state is home to two liquefied natural gas plants run by Woodside and fertiliser and explosives plants run by Norway's Yara International. Australia's government in May extended the lifetime of Woodside's largest gas plant in the region, the North West Shelf, until 2070. The extension will generate up to 4.3 billion metric tons of additional carbon emissions. Scrutiny over the impact of Australia's resources industry on Indigenous heritage sites has been magnified since Rio Tinto, the world's biggest iron ore miner, destroyed the 46,000-year-old Juukan Gorge rock shelters as part of a mine expansion in 2020.
