Australia ‘losing on every front’ to Donald | Australian Markets

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Australia faces an “acute” problem in maintaining its place as one of the world’s main vitality suppliers within the face of Donald Trump’s push to increase fossil fuel output, the pinnacle of the nation’s largest oil and fuel producer has warned.

Meg O’Neill, chief government of Woodside Vitality, issued the warning on Thursday on the Melbourne Mining Membership, the place she argued that Australia “loses on every front” to the US because of larger taxes and labour prices and environmental rules.

“Australia is not competing,” she mentioned, pointing to what she referred to as ideological opposition by some state governments to new oil and fuel initiatives and layers of environmental and allowing rules which have delayed installations needed to fulfill home vitality wants.

“Australian companies of the future will need reliable, affordable energy,” she mentioned, pointing to the Trump administration’s efforts to decontrol the sector and spur new vitality investment. “In a country as lucky and resource-rich as Australia, it would be a major policy failure if we are not able to achieve this.

“Amid rising global protectionism and even greater competition for capital, Australia must sharpen its competitive advantage,” O’Neill added.

Australia is set to carry a national election by Might 17, and O’Neill anticipated vitality to be on the centre of the marketing campaign amid a price of residing disaster. Australian shoppers have been saddled with larger electrical energy costs because of rising wholesale prices, main the federal government to introduce subsidies.

However O’Neill mentioned costs would rise additional within the coming years as dwindling home provide forces some states to import fuel for the primary time. “Australia’s energy security and ongoing national prosperity are what’s at stake,” she mentioned.

Woodside, which has a market capitalisation of A$47bn (US$29.5bn), has emerged as Australia’s largest oil and fuel company after it merged with BHP’s vitality belongings in 2022. It produces liquefied natural fuel — Australia’s most profitable export behind iron ore and coal — off the coast of Western Australia and within the southern Bass Strait between mainland Australia and Tasmania.

Australia, alongside the US and Qatar, is one of the world’s largest world suppliers of natural fuel, accounting for a fifth of world LNG trade. About 90 per cent of the nation’s LNG exports are despatched to Asian nations, in accordance with authorities knowledge, notably Japan and South Korea.

However O’Neill warned that Australia’s status as a dependable trading accomplice in Asia was “wobbling” because of interventionist insurance policies by Prime Minister Anthony Albanese’s Labor authorities, similar to price caps and export controls to guard home provide.

In the meantime, Donald Trump has sought to roll back his predecessor’s inexperienced vitality agenda and increase natural LNG exports.

Woodside has expanded internationally since 2021, together with within the US, the place it accomplished two massive acquisitions final yr. O’Neill mentioned this worldwide focus was partly due to the pace of approval for new initiatives in markets outdoors Australia and what she referred to as “wishful thinking” within the debate across the nation’s vitality transition.

She highlighted the company’s wrestle to increase an current project in Western Australia, which continues to be awaiting closing approval from the federal government six years after it was proposed.