Why Labor’s gas price cap will just blow up the energy future

Usually, when energy prices are high, energy producers dig deeper for more coal and extract more gas.Hence, the famous adage: “The best cure for high prices, is high prices”.

Despite the significant increase in renewable investment, green energy is not yet being produced at the pace or reliability required to replace the decommissioning of coal-fired power and depreciation of existing energy assets.has acknowledged as much“It is difficult to make predictions here, but it’s probable that the global capital stock that is used to produce energy will come under recurring pressure in the years ahead,” Lowe said last week.

Ongoing government interventions will add to uncertainty and deter investment by gas producers – both in existing and potential new gas fields.That could ultimately lead to higher prices in the long term.Interventions will also reduce the incentive for industrial gas users to lock in long-term supply contracts, hedge via swap contracts and purchase excess gas to place in storage.

Source: Energy Industry News (energyindustrynews.net)

Do you have any other ideal ways to reduce or cap gas prices for the local Australian communities struggling financially Maybe reduce GST tax Maybe make gas supply free on weekends only Any other suggestions Aussies?

AFR is always siding with the miners They are on a greedy to gorge themselves with profit Money n public interest is not a concern JUST MONEY

joking right? I thought parody wasn't something that the financialreview would print? It is time for this nation to take control of its resources and to remind the international multi-nationals that they need to pay tax and ensure that prices here are low. auspol

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