The truth about Australia's gas shortage | ABC NEWS In-depth

For the first time, and in spite of Australia's position as one of the world's biggest gas exporters, the country is preparing to do something that was once unthinkable.

It is on the cusp of becoming a gas importer.

So how did one of the world’s biggest gas players become so vulnerable to shortages?
Was it corporate greed? Mismanagement? Or is the country simply running out of the stuff?
What’s the solution? Should we keep more for ourselves? Build new pipes?
The answers, like so much to do with energy, are messy and complicated.

ABC Energy reporter Daniel Mercer reports.

00:00 Intro
01:56 How gas is traded
02:34 Global gas contracts
03:59 Global gas price shocks
04:59 East coast gas demand
06:46 Can Queensland fill the gap?
07:44 What's the solution?
08:00 Why don't we keep more gas?
09:07 Why don't we drill more?
10:10 Gas imports

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[darrengough]

Why u say Australia exported, not true. Gas companies exported. For free.

[johnrogers]

Our massive gas reserves are being destroyed by the two things that destroy everything: Greed & Political incompetence.
The greed could be managed though, if we had politicians that were even half decent.
Politicians could be managed if we had accountability that imposed massive penalties on incompetence and bad behaviours.

[justinharwood]

Another example of Australians getting screwed by industry and pollies! Meat, Electricity, Gas, Iron anything we actually do not get screwed over for? We need a government that wrestles this back. By all means i am happy when some of these companies make profit, but not at the expense of the Australian population. We need new parties with new ideas, not ones that dont pay their workers super.

[garysheppard]

When the WA govt was negotiating the gas contracts the premiere insisted that there be a reservation of gas for domestic use. 
The gas companies said "If you do that, we walk". 
The premier said words to the effect of "Don't let the door hit you on the way out". 
The gas companies signed the next day.
The eastern states caved to the gas companies bluff..

[alanbaskaev]

Australia is becoming a joke. You guys need to wake up.

[henrylawson]

This shows major industries have their boots on the necks of politicians regardless of Party affiliation. To fix the problem you would have to nationalise the industry. My opinion is that all strategic industries of national security importance should be held by the government, ie the people of Australia.

[SineNmine]

If they'll sell your gas to make a buck while you can't afford to heat your home, what makes you think they won't sell all the food to the highest bidder and let us go hungry? This is just the begining.

[davidtydeman]

WA has a gas reservation policy and a state owned energy generator and provider which means that the problems of the Eastern States don’t apply in the West.

[JoelReid]

This is really a result of greedy state governments. Resources are owned by the states, not the federal government. This is why WA has significantly less of a problem. The states are happy to let the federal government take the blame, but it shouldn't be a problem for the federal government to deal with at all if states had not been so greedy.

[sirneko]

Australia watching Billions of dollars in Gas being shipped away for free, while complaining about raising costs, being told that there are shortages coming... No wonder the major parties that allow these games are not getting primary votes.

[registhiolliere]

Danemark Germany Austria has 70 % of electricity from renewable

[petervad]

Great explanation, thanks. What brilliant management of our resources by the LNP and ALP. And, they virtually give it away - no royalties to the people who own it, us Australians. Both parties are incompetent and corrupt in their handling of this. Vote them out this election. Vote Community Independents or Greens - they would never have allowed this to happen.

[roseknightmare]

Well done keeping comments open. Is there any reason not to put a domestic minimum purchase for mineral improvement before export on mining companies?

[JayMeadowBrook-sm]

My friend died from a fault in a gas heater. Don't buy anything for, Christmas, birthdays, holidays, Nothing. Not till you get far away from gas..!

[Adam-gdh]

The main investors are from New York and the City of London so be careful not to disappear Bro.

[barrykrehula]

and we probably subsidising the exporters ???

[mark-]

Australia has only 20 years of gas left. how stupid! Poor for the next generation

[TAVOAu]

Imagine the Saudis importing petrol at $3 a litre. Essentially where we're at.

[ACDZ]

Vote 1 nation to end this nonsense..Pauline hasn't sold out like Labor and liberal

[matthewrobertson]

The reporter complains that "Victoria's (gas) supply is falling fast" - it's merely "tailing away" (6:11). And yet there is no mention that this decline is a *consequence of* Victorian Government policies and anti-fossil fuel sentiment: (1) Gas exploration was banned 2012-2021; (2) Fracking remains banned; (3) Gas connections to new housing developments banned; (4) Predominance of climate-driven policy and sentiment; (5) Increased red tape for gas projects.

No rational investor would invest long-term fixed capital assets in such a high-risk sociopolitical environment. The reporter is merely complaining that gas companies don't simply gratuitously invest and produce for a people who say they don't want the producers or their product. Contrastingly, overseas investors are prepared to give long-term guarantees that they will buy the product of the long-term capital that is required for gas projects to be financially viable.

The ABC's energy narrative is just cultural socialist propaganda.