How the free market failed Australia and priced us out of our own gas supply
Fashion has a habit of turning full circle.
Remember that old shirt, the super tight one with the stretchy material and weird collar that you found at the bottom of the wardrobe? What on Earth possessed you to buy it, you wonder. What were you thinking?
For anyone who lived through the '70s, the memories of those fashion crimes often come back to haunt us.
While our government goes penny pinching and squeezing retirees, they let some of the biggest companies on earth walk away with $billions tax free. Way to go.
- The problems arise when the business being sold is a monopoly
- The buyer, having paid an exorbitant price, is given carte blanche to extract its tonne of flesh
- Within the next four years, Australia will overtake Qatar as the world's biggest supplier of gas. We are sitting on vast gas reserves. In fact, we're swimming in the stuff.
- Power outages across the eastern states and force energy prices through the roof while any profits that are made will be shipped offshore
- Global prices have more than halved to $10 and under. Domestic prices, meanwhile, have soared, to well above $10 because of the domestic shortage
- AGL is actively considering buying Australian gas in Japan and shipping it back home. And why not? It's cheaper there
- ExxonMobil, Chevron and Shell until two years ago were booking around $3 billion a year in profit, tax free
- It's anticipated our resources tax will collect just $800 million
- Qatar, on the other hand, is expected to receive $26.6 billion in royalties that same year for roughly the same volume of exports
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