Chevron, Woodside, Alcoa and CCIWA weigh in on the | Australian Markets
Taking WA fuel without any consideration will stifle Australia’s profitable mining industry, decarbonisation ambitions, artificial intelligence capabilities and even our consuming water.
That was the message from vitality, mining and business leaders, who conceded the industry must do more to elucidate why fuel is so important to the nation’s future prosperity during a roundtable hosted by The West Australian at Crown Perth.
The transition fuel
Most advocates of natural fuel have touted the function the vitality source can play bridging our shift from emissions-intensive fossil fuels like coal in the direction of renewables like photo voltaic and wind.
A heatwave that noticed Perth shatter its vitality demand file at about 6.30pm on January 20 illustrated fuel’ significance as a transition fuel.
“During that peak, natural gas made up 56 per cent of the electricity that was provided to homes,” Chamber of Commerce and Trade WA’s chief economist Aaron Morey stated.
“Now renewables had a part in that (energy supply), but the sun had set, and the wind wasn’t blowing as strong as it normally is, and natural gas took their spot.”
Liz Westacott, Woodside Power’s chief working officer in Australia, stated fuel’ potential to supplant coal is commonly underestimated.
“Many people don’t realise that coal is still eight times more likely to be used to produce electricity than gas around the world, eight times,” she stated.
“If you only took about 10 per cent of that production, you almost double the LNG required in the world. Gas has that ability to replace coal, and it does at about half the emissions.”
Chevron’s boss in Australia Danny Woodall stated “it’s easy” to take WA’s ample fuel without any consideration.
“We need to keep reminding people that we shouldn’t take it for granted, there’ll be demand well into the future for natural gas,” Mr Woodall stated.
“The federal government’s own future gas strategy indicates that even through the energy transition, gas will be needed well into the 2050s, we agree with that.
“We think gas will be needed well beyond that period around the world. We need to remind policy makers and politicians and the public that the access that we have today isn’t guaranteed.”
He stated Chevron will need to invest tens of billions of {dollars} more to keep its Gorgon and Wheatstone belongings in WA operating at full tilt.
“It’s not for granted that that supply will be there . . . it takes good policy, stable policy, so that companies like Chevron and Woodside can continue to make those investments into the future.”
Jobs on the road
Ms Westacott stated WA’s home fuel industry has supplied $40 billion price of taxes and royalties to the Federal Authorities and $18b to the State Authorities over the previous 40 years.
About 3000 present Woodside jobs are straight linked to its fuel manufacturing, however huge chunks of WA’s mining industry are additionally tied to fuel provide.
Alcoa’s Australia area chief Elsabe Muller says fuel is “very, very important” to its operations within the State.
“To be honest, if it wasn’t for gas, Alcoa refineries (in WA) wouldn’t exist,” she stated.
“We wouldn’t be able to create 4000 jobs at our three refineries – Kwinana, Pinjarra and Wagerup – and (energy) is 30 per cent of our cost base, so it’s quite important to have a low-cost energy base.”
Alcoa, which makes use of about 25 per cent of WA’s fuel to course of the bauxite it mines into aluminium oxide, might go offshore if fuel provide turns into constrained.
“That bauxite can be exported potentially into Indonesia, where they use coal,” Ms Muller stated.
“That would be really bad for not only WA economy, but also the world . . . you’re going to increase the carbon footprint because we couldn’t get the gas.
“We are very supportive of the gas reservation policy. Because if it wasn’t there, we wouldn’t be able to create 4000 jobs.”
Mr Woodall stated fuel has a function to play in growing jobs of future, just like the nascent artificial intelligence sector with fuel powering the energy-hungry information centres that make the technology doable.
“What you’re starting to see emerge is gigawatt-scale data and energy production facilities co-located off grid, and you’re seeing it in places of energy abundance,” he stated.
“You’re seeing it in Texas, you’re seeing it in Louisiana, you see it in these sorts of places that are embracing gas as an energy source, which is providing the United States an enormous competitive advantage.”
Water and international objectives
The advantages of ample fuel stretch past Australia’s sources sector and authorities bank balances, based on Mr Morey.
“Gas also underpins the household sector, whether it be generating electricity or, in fact, running our desalination plants,” he stated.
“We (in WA) take it for granted, but seven billion people in the Global South certainly do not and that is why China burns so much coal, why India burns so much coal, because they aspire for their people to have a better standard of living.
“If we can supply them with natural gas, as Liz was saying, half the CO2 emissions on average compared to that energy source (coal) then there will be a much lower impact to the environment.”
Ms Westacott stated WA nonetheless has the chance to keep up its “fabulous lifestyle” whereas contributing to a cleaner vitality future globally by way of fuel.
“As we start to work better together with consumers and producers, but also government and bringing policy together that will continue the investment we need, I just think the opportunity to continue to enjoy this amazing lifestyle is very real, while also moving on this journey to a cleaner future,” she stated.
“There’s a lot of opportunity here, and it’s incumbent on all of us, really, to get behind it and make it happen.”
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