<
https://reneweconomy.com.au/why-does-an-energy-superpower-like-australia-still-depend-on-global-fossil-fuels/>
"As Forrest Gump says, “I may not be a smart man, but…”
Why is one of the most energy-rich countries in the world still exposed to
global fuel markets?
Australians should have the cheapest, most abundant and most reliable energy in
the world. And yet our energy consumers are about to cop another massive price
hike.
Every time conflict breaks out somewhere in the world, energy markets react
almost immediately. Prices go crazy, supply chains tighten and governments
start talking about energy security again. We have seen this pattern over and
over in the past two decades, and the underlying problem has not really
changed. The Australian economy, like most modern economies, still relies too
heavily on fuels traded on global markets and controlled by a relatively small
number of suppliers.
Australia likes to think of itself as an energy superpower, but large parts of
our economy are exposed to this risk. Oil and diesel power most of our
transport and farming and, in some places, electricity generation. Gas is still
a major input into electricity generation and industrial processes. When those
markets move because of events overseas, the effects flow straight through to
businesses and households at home. Not just through electricity prices, but in
food, goods and simply getting to and from school and work.
The usual response is to ask how we secure more supply. Should we drill more
gas, build more terminals or subsidise certain industries? Those debates miss
the point. The core problem is not how we secure access to fossil fuels. The
real question is why so much of the Australian economy is still structured
around fuels traded on global markets."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
