• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 6 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents * Too late now
  • 2 hours 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 23 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 10 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 6 hours Will Uncle Sam Step Up and Cut Production
  • 11 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 3 hours Russia Accuses U.S. Of Stoking Tensions With Missile Test
  • 3 hours With Global Warming Greenland is Prime Real Estate
  • 3 hours Sad . . . Only thing that moves oil price up is an attack on Tankers or Oil Facilities (Staged or real?)
  • 2 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 12 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 1 day Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 2 days Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 6 hours Get First Access To The Oilprice App!
  • 15 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
Alt Text

Kurdistan’s Massive Gas Reserves No One Knows About

The announcement of independent driller…

Alt Text

Japan Is Bargain Hunting As LNG Prices Slump

Utilities in Japan, the world’s…

Vanand Meliksetian

Vanand Meliksetian

Vanand Meliksetian is an energy and utilities consultant who has worked with several major international energy companies. He has an LL.M. from VU Amsterdam University…

More Info

Premium Content

Australia Remains Dividend On Roaring LNG Sector

The consumption of natural gas has grown considerably over the years. Especially LNG is in high demand as it adds a degree of flexibility to the market. Although Australia’s gas reserves are relatively modest, the country overtook Qatar and became the world’s largest LNG exporter in 2018. Several factors facilitated its rise: a favourable business climate, geographic proximity to essential buyers in Asia, and sufficient skilled workers.

However, Australia's LNG industry has been facing scrutiny from environmentalists, which has tainted the sector's image. The Australian Petroleum Production and Exploration Association (APPEA) recently decided to become more proactive in promoting the industry's interests and role in domestic and global energy markets.

A booming sector in a divided country

Australia’s LNG industry became the world’s largest after several major projects were completed during the last couple of years. The country exported approximately 80 million tonnes of super cooled natural gas last year while producers are gearing up for the next expansion phase due in 2020. The country’s proximity to Asian markets and the trade war between the U.S. and China have improved the odds of a successful ‘final investment decision’ next year.

(Click to enlarge)

Rising energy prices are partly to blame for the domestic image of the Australian LNG industry. This comes at a time when the country produces record amounts of natural gas which certain politicians have used as an opportunity to propose export quotas to secure natural gas for the domestic market. Although the surprise re-election of Australia’s centre-right government means producers face less pressure, the APPEA agrees a consistent, proactive message is still required to improve the industry’s standing in Australian society.

At the same time, environmentalists are maintaining pressure on the fossil fuel industry. According to Emma Herd, Chief Executive of the Investor Group on Climate Change: “investors continue to engage with the oil and gas industry to understand how they are positioning for a net zero emissions global economy”.

“It’s time to tell our story”

In the past, the APPEA focused on expansion activities such as supporting the construction of cost-effective LNG facilities by lobbying the government to introduce favourable policies. This year’s event, however, sharply changed the focus of attention towards improving relations with the general public which was summed up in the launch video proclaiming: “It’s time to tell our story. On our terms.” Related: Ethanol Industry Suffers Major Blow

The APPEA’s strategy to become more proactive in Australia’s public debate concerning the LNG sector is based on three pillars. First, a positive image on social media will be created to reach young people who are vocal and often oppose the fossil fuel industry. Second, industry representatives will also have to lobby the federal and state governments to be more supportive of exploration and increased production activities, which they see as the easiest way to lower costs for domestic consumers. Lastly, a positive narrative needs to be developed to oppose environmentalist’s arguments.

Countering these arguments should benefit the LNG industry, which is negatively affected by the image the green movement has created in which extraction and liquefication sharply increases Australia’s CO2 emissions. Woodside Energy CEO Peter Coleman acknowledges that the industry emits greenhouse gasses, but LNG's overall impact on global emissions is positive due to the replacement of coal elsewhere, such as China.

The final word

Despite a well-prepared strategy, the decisive factor could be what Prime Minister Scott Morrison calls the “quiet Australians.” According to some analysts, these are the voters who don’t speak up or express their voice in some way or another but want cheaper electricity and energy security. During the campaign, the opposition Labour and the Greens aimed for what they called the “the climate election” which largely failed to take off. The electoral victory of the ruling party shows that voters are more concerned with rising energy bills than increased CO2 emissions. 

By Vanand Meliksetian for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play