Petrol Price crisis......

[roKWiz]

Originally Posted by Franco Cozzo

Its the most ridiculous thing ever, why are Australians competing on market prices for our own resources?

I think we are being played by the stockmarket.
Water will be the new petrol crisis.

[Bossxr8]

If energy prices are soaring, why has the solar feed in rate been cut?

They take it for next to nothing, then charge you a fortune for what you take back when the sun stops shining.


A lot of the oil price surge can be attributed to President Potato in the USA. America went from being self oil dependent, to sucking on the teet of imported oil pretty much overnight due to their america last green policies that want high oil prices to force people into EV's. Their power sources can barely get by now, just imagine how bad it's going to get over there once EV's become more common.

They banned all future oil exploration. It's by design, the Ukraine invasion just became a convenient excuse to blame high oil prices on. Despite oil prices soaring months before the invasion.

[Adamz Ghia]

Originally Posted by Franco Cozzo

For anyone interested if you go to this website you can look at the fuel mix each state is using to generate power and how much power they are generating, as well as spot prices:

https://aemo.com.au/energy-systems/e...-dashboard-nem

Over the past 3 months, VIC generated 70% of its power from brown coal - why are our power prices going up? Ukraine war effecting price of brown coal coming out of the ground in Gippsland?

Honorable mention for SA on 11-12th of May and suddenly generating 62% of its power from gas and another 17% from diesel generators.

Go to the power station near Morwell and the conveyor belts run over the road from the coal mine to the power station! How the hell do international events affect that??

[Franco Cozzo]

Originally Posted by Adamz Ghia

Go to the power station near Morwell and the conveyor belts run over the road from the coal mine to the power station! How the hell do international events affect that??

I know right,

We don't have any legislation around supply and pricing of our own resources into our domestic market, WA has legislation about supply on natural gas that their industry must guarantee supply to the local market, where as us eastern states (and SA) are paying spot prices, WA is only paying like $6/GJ for gas and here we're paying $35-$55/GJ.

We're literally competing on the global market for our own resources we dig up/harvest/use internally. Except countries like China and Japan are buying on long term contracted pricing, so they're paying way less than what we are for our own gas even after the cost of shipping it to them.

May be different for brown coal we use in VIC because I don't think its as valuable or exported at any decent rates in comparison to black coal which NSW and QLD both use.

There's conjecture about 'lack of competition' causing 'price rises' to Australian customers but I think its Canberra being 'afflicted by mental retardation' to quote Iranian President Hassan Rouhan.

https://nymag.com/intelligencer/2019...tardation.html

Should be fulfilling our own market requirements first + some extra buffer, then you can export as much as you want.

They're predicting a gas shortage on the eastern coast this year, how the hell do we run our own domestic market out of a resource we have an abundance of?

https://www.theguardian.com/australi...y-review-warns

[T3rminator]

Would love the see the ROI on energy exports vs dishing out cheap energy to locals (both businesses and residents).

[Franco Cozzo]

Originally Posted by T3rminator

Would love the see the ROI on energy exports vs dishing out cheap energy to locals (both businesses and residents).

They're all private companies so the ROI for cheap energy to locals wouldn't stack up compared to exporting them to countries like China.

Plus we have no manufacturing industry anymore, all our resource intensive industries left the country - this is a conversation we should have been having 40 years ago, not looking at it now

As far as I'm concerned, I have zero interest in financials over whats beneficial over the private company exploiting our resources and throwing Australians under the bus.

I have an interest in Australian resources benefiting Australians first (and maybe other friendly neighbors to help out).

Once we're all looked after, then they can chase money from other countries.

No Australian state should be looking down the barrel of LNG shortages or being charged out the *** in a country with an abundance of natural resources we can take advantage of cheaply.

If our politicians have balls we'd have done something about this years ago but they're too cheaply bought by political donations from said companies, thats how lame our political class is.

You could understand if they were bought out by a semi worth of gold bullion, but its like they're selling out for a plastic deck chair and a slab of VB. They can't even do corruption properly

[T3rminator]

Originally Posted by Franco Cozzo

They're all private companies so the ROI for cheap energy to locals wouldn't stack up compared to exporting them to countries like China.

Plus we have no manufacturing industry anymore, all our resource intensive industries left the country - this is a conversation we should have been having 40 years ago, not looking at it now

As far as I'm concerned, I have zero interest in financials over whats beneficial over the private company exploiting our resources and throwing Australians under the bus.

I have an interest in Australian resources benefiting Australians first (and maybe other friendly neighbors to help out).

Once we're all looked after, then they can chase money from other countries.

No Australian state should be looking down the barrel of LNG shortages or being charged out the *** in a country with an abundance of natural resources we can take advantage of cheaply.

That's kinda what I was getting at. With all our manufacturing of any significance gone, cheap energy to Australians does not pay the nation's bills. Exporting it does.

[hayseed]

Originally Posted by Franco Cozzo

Its the most ridiculous thing ever, why are Australians competing on market prices for our own resources?

You can blame John Howard for Oil Parity Pricing..


In 1976 John Howard when Treasurer, introduced Oil Parity Pricing allowing Oil Co’s to artificially jack
up prices as a deceitful contrived necessity, milking billions from the people even though Australian
production costs remained at $3 a barrel. Oil Co’s were given permission to charge overseas prices for all
the oil found in Australia, and make massive profits under the guise that it encouraged them to search for
oil here.


https://www.aph.gov.au/~/media/wopap...3%20a%20barrel.

[Franco Cozzo]

Originally Posted by T3rminator

That's kinda what I was getting at. With all our manufacturing of any significance gone, cheap energy to Australians does not pay the nation's bills. Exporting it does.

The thing is how much of that do we actually see aside from the one off licensing royalties they pay for the area they want to extract gas from? They pay virtually zero tax in Australia.

The discovery was made by The Australia Institute, using Australian Taxation Office data on selected members of the Australian Petroleum Production and Exploration Association (APPEA) from 2014 to 2020, inclusive.

TAI says four of the five APPEA members paid no income tax for at least that seven-year period, despite a combined income from their Australian operations of $138 billion.

TAI notes that those four companies – Arrow Energy, Australia-Pacific LNG, Chevron and ExxonMobil – are foreign owned, resulting in all profits heading straight offshore.

A sixth company, Santos, paid just $6 million on $28.9 billion of income, and paid no income tax from 2015 to 2018, or in 2020.

https://reneweconomy.com.au/gas-gian...ew-data-shows/

So how do those exports benefit Australians?

I'm not seeing no benefit out of this, all I'm seeing is 520% increase in two years on gas prices domestically, getting charged up the *** for our own resources while not getting any revenue from these exports either?

[Franco Cozzo]

Maybe we should buy Russian gas instead for our domestic use, it could be going cheaper than ours

[mick taylor]

Originally Posted by hayseed

You can blame John Howard for Oil Parity Pricing..


In 1976 John Howard when Treasurer, introduced Oil Parity Pricing allowing Oil Co’s to artificially jack
up prices as a deceitful contrived necessity, milking billions from the people even though Australian
production costs remained at $3 a barrel. Oil Co’s were given permission to charge overseas prices for all
the oil found in Australia, and make massive profits under the guise that it encouraged them to search for
oil here.


https://www.aph.gov.au/~/media/wopap...3%20a%20barrel.

That's correct but Australian oil is crap for making engine oil or roads, so we need the better quality oil to mix in with some of ours.
Not to mention our oil is a high sulphur called sower and others have what is called sweet that has no sulphur or little.

If one does not bother to search for oil then price will rise down the tack.

I could tell you all the real reason why we are paying so much for fuel now, but I will gust get that wiped with some BS reason from some mod.

Their is no real valid reason why we are having to fork out like we are at all what soever ! It's Joe Biden's baby, he wants high fuel prices just like Elbo wants high fuel prices in fact, the moron is going to put the 20 cents Tax back on as soon as he can !

Not to mention in QLD we are paying 3 times more that we should for power, now who gets all that money ? don't tell or people may wake up and smell a huge Rat !

[T3rminator]

Originally Posted by mick taylor

Their is no real valid reason why we are having to fork out like we are at all what soever ! It's Joe Biden's baby, he wants high fuel prices just like Elbo wants high fuel prices in fact, the moron is going to put the 20 cents Tax back on as soon as he can !

I don't think its any particular one or two individuals.....I think the G7 have some big plans for us obedient little underlings.

[Itsme]

Originally Posted by hayseed

You can blame John Howard for Oil Parity Pricing..


In 1976 John Howard when Treasurer, introduced Oil Parity Pricing allowing Oil Co’s to artificially jack
up prices as a deceitful contrived necessity, milking billions from the people even though Australian
production costs remained at $3 a barrel. Oil Co’s were given permission to charge overseas prices for all
the oil found in Australia, and make massive profits under the guise that it encouraged them to search for
oil here.


https://www.aph.gov.au/~/media/wopap...3%20a%20barrel.

The Fraser government along with Howard sure did slugged us at the bowser.
https://www.drive.com.au/news/friday...0130816-2s0sm/

[T3rminator]

AUD equivalent of petrol prices in the UK is $3. That's for normal unleaded. But apparently cost of potatoes and fried chips have come down. Can you make bio fuel with potatoes?

There are mumblings we might hit the same energy "crisis" as the UK, why, I don't know.

[jpd80]

Originally Posted by T3rminator

Can you make bio fuel with potatoes?

Vodka

[Franco Cozzo]

Jim Chalmers claiming there is no easy or quick way to fix the gas crisis problem we're walking into, sure there is Jimbo, you and your new government gets off your fat *** and create some legislation that they must meet all domestic supply demands much like what WA has.

That would require them going back on their donors though - here have $10,000 towards your campaign while we take $138B/year of your resources.

Rest assured if that was me in that position I'd be selling you all out for 9 figures because I do corruption properly, no plastic deck chair and slab of VB like the previous flogs - the more you make the more you pay me.

I'm not greedy just pay me 2.5% of your profits indexed annually and you have my word that parliament won't nationalise you

[GASWAGON]

Yes the next few years are going to get very hard.

Fuel, groceries, electricity/gas for eastern states, rent or mortgage rates climbing.

Not good!

[Vekgib]

Originally Posted by GASWAGON

Yes the next few years are going to get very hard.

Fuel, groceries, electricity/gas for eastern states, rent or mortgage rates climbing.

Not good!

Not likely. Albo said that he'd fix everything.

[Sprintey]

Originally Posted by Franco Cozzo

They're all private companies so the ROI for cheap energy to locals wouldn't stack up compared to exporting them to countries like China.

Plus we have no manufacturing industry anymore, all our resource intensive industries left the country - this is a conversation we should have been having 40 years ago, not looking at it now

As far as I'm concerned, I have zero interest in financials over whats beneficial over the private company exploiting our resources and throwing Australians under the bus.

I have an interest in Australian resources benefiting Australians first (and maybe other friendly neighbors to help out).

Once we're all looked after, then they can chase money from other countries.

No Australian state should be looking down the barrel of LNG shortages or being charged out the *** in a country with an abundance of natural resources we can take advantage of cheaply.

If our politicians have balls we'd have done something about this years ago but they're too cheaply bought by political donations from said companies, thats how lame our political class is.

You could understand if they were bought out by a semi worth of gold bullion, but its like they're selling out for a plastic deck chair and a slab of VB. They can't even do corruption properly

Agree Franco, you might like some of the Macrobusiness links, where their rage is both strong and just.

https://www.macrobusiness.com.au/202...ers-nuke-albo/

and thanks whynot for the link to oil shocks, will try to get through it

[Polyal]

Cripes $2.2/L for diesel down here is pretty painful

[fiestaz]

$107 to fill focus with 98 yesterday… I know it’s expensive.. but still burns at the pump.

[T3rminator]

Just don't fill it up. Stop at $50. Makes me feel better.

[John 13]

Originally Posted by T3rminator

AUD equivalent of petrol prices in the UK is $3. That's for normal unleaded. But apparently cost of potatoes and fried chips have come down. Can you make bio fuel with potatoes?

There are mumblings we might hit the same energy "crisis" as the UK, why, I don't know.

Apparently in USA this week average price is around AUD 1.75 per litre. There are some wide variations in prices west to east with the lowest prices in the mid west and the south. Saudi Aramco (largest refinery in Texas) could be raking it in.

[Dr Terry]

Originally Posted by John 13

Apparently in USA this week average price is around AUD 1.75 per litre. There are some wide variations in prices west to east with the lowest prices in the mid west and the south. Saudi Aramco (largest refinery in Texas) could be raking it in.

When I was over in the USA (11 years ago, sh!t time haas flown) there was this huge discrepancy between the east coast & west coast. Back then it was around a dollar ($2.50 vs $3.50 p/l). Nobody seem to care.

Dr Terry

[Ben73]

Originally Posted by Bossxr8

If energy prices are soaring, why has the solar feed in rate been cut?

They take it for next to nothing, then charge you a fortune for what you take back when the sun stops shining.


A lot of the oil price surge can be attributed to President Potato in the USA. America went from being self oil dependent, to sucking on the teet of imported oil pretty much overnight due to their america last green policies that want high oil prices to force people into EV's. Their power sources can barely get by now, just imagine how bad it's going to get over there once EV's become more common.

They banned all future oil exploration. It's by design, the Ukraine invasion just became a convenient excuse to blame high oil prices on. Despite oil prices soaring months before the invasion.

US president has very little affect on oil prices. US oil drilling companies could ramp up production but they said they don’t want to because it will reduce profits for their shareholders. Thinking Biden caused worldwide oil price surge means the propaganda has worked

[HIPO]

Bloody Russians!

[Late braker]

Originally Posted by T3rminator

Just don't fill it up. Stop at $50. Makes me feel better.

That’s what I do. About $65-70 I tap out.

[jpd80]

Originally Posted by Ben73

US president has very little affect on oil prices. US oil drilling companies could ramp up production but they said they don’t want to because it will reduce profits for their shareholders. Thinking Biden caused worldwide oil price surge means the propaganda has worked

The issue that people are missing is that there’s no shortage of oil, just uncertainty
and all the corporates are making record profits jacking up prices that were forced to pay.

What annoys me is that the reserve banks answer to inflation is jacking up interest rates
to the most vulnerable people, home buyers. I’m glad that my mortgage is almost paid off,
I’d hate to think what a $300k or more debt would mean on top of all the other jacked up prices.

[Bossxr8]

Originally Posted by Ben73

US president has very little affect on oil prices. US oil drilling companies could ramp up production but they said they don’t want to because it will reduce profits for their shareholders. Thinking Biden caused worldwide oil price surge means the propaganda has worked

He's not helping in anyway that's for sure. His policies are all about destroying oil to faster bring on green tech that won't be ready in large enough scale for decades. Talk about a looming disaster. The guy doesn't even know what day it is, let alone has the faculties to run a country.

The moves by the oil companies is a direct response to him trying to destroy them. Pumping more oil would bail him out. Finding more oil would too. This wouldn't even be an issue if he wasn't president.



OPEC Says To Biden: If You Want More Oil, Pump It Yourself


OPEC and its oil-producing partners have rebuffed President Joe Biden’s calls for increased production amidst rising fuel prices, retorting that if the United States believes the world’s economy needs more energy, then it has the capability to increase production itself. The OPEC+ alliance, made up of OPEC members led by Saudi Arabia and non-member top producers guided by Russia, approved an increase in production of 400,000 barrels per day for the month of December.

Several OPEC ministers have expressed concern over loosening the taps, wary of renewed setbacks in the battle against the pandemic and the slow speed of economic recovery. Countries claim that because demand is not yet high enough to justify increased production, there is a risk of market distortion. Luckily for consumers, OPEC members also have a rich history of cheating.

OPEC+ supply restraint has supported a rally that pushed global benchmark Brent crude to a three-year high of $86.70 last month.






President Biden’s overtures to OPEC + sound disingenuous against the backdrop of a Democratic Party energy doctrine, announced in January 2021, that seeks to limit production of hydrocarbons in the US and limit GHG emissions globally. This year the Biden administration announced a moratorium on drilling permit issuances on federal lands and waters, and effectively killed the KEYSTONE XL pipeline from Canada to the U.S. in the name of environmental and Native American tribal concerns. Biden wants to appeal to his Democratic voter base by reducing the climate costs of domestic fuel production, while also pressuring other nations to increase their output to lower domestic oil prices. In other words, politically, he wants to have his cake and eat it too.

The Biden administration’s refusal to increase oil and gas output also puts Europe in a particularly difficult situation, as the gas production in the UK, North Sea, and Holland is depleting, and there is no domestic gas supply besides Norway. Thus, the current US energy doctrine has only increased Russia’s influence in the region by making it’s Nord Stream 2 Gas Pipeline – which would see another 55 billion cubic meters (bcm) of natural gas supplied to the EU while circumventing Ukraine – a very attractive offer for an energy-starved Europe. The continent’s energy woes are exacerbated by poor public policy making by the EU’s de-facto leader, Germany – which has prioritized closing nuclear plants over decommissioning coal and gas plants. Despite over $30 billion Euros invested in the German Energiewende (energy transformation) last year alone, rapid declines in the cost of wind and solar have not translated into cheap electricity due to decommissioning of coal and nuclear plants.





But there is a risk of prices overheating. OPEC has a “goldilocks zone” for oil prices which fluctuates depending on the member. There are ‘price hawks’ who have more expensive lifting costs and therefore traditionally favor higher oil prices (Iran, Venezuela) — and price doves which can extract oil cheaply (Saudi, UAE) who want to make sure that high prices don’t drive buyers to invest in alternative energy. Generally, the $75 to $90 a barrel range is the sweet spot which allows for sufficient government revenues, but is still not high enough to encourage investment in substitutes. But because oil prices have been historically low, members may be more inclined to keep prices higher for longer to attract the needed investment in the oil sector. Another factor to consider is that it is not clear how much, if any, political sway Biden has over OPEC. As of 2018, OPEC member countries held 79.4% of the world's proven oil reserves and produced about 40% of the world's oil output. OPEC has the ability to drive prices and the Biden administration has hampered the US’ ability to push back against the cartel's pricing power by ramping up production. Since early 2020, pre-corona, US oil production dropped to 2018 levels.


Shale Response?
The US is the world’s top oil producer and a fast-growing oil crude exporter. In fact, multiple major oil firms, including BP Plc (BP. L), Chevron CorpCVX +0.9% (CVX.N) and Exxon Mobil CorpXOM +1.5% (XOM.N), have publicly announced that they plan to ramp up output or shale spending next year in a bid to rebuff OPEC's oligopolistic supply management.

The current energy doctrine calls for a green electrification to meet current domestic climate goals. However, the issues of intermittency and electricity storage remain unresolved and are at least two decades away from workable solutions. Those aspirations, while justified in the long run, however, must co-exist with the need to give Americans and the world affordable and reliable access to energy (and stave off inflation).

Biden’s energy policy has only reduced the amount of influence we can exert on the OPEC cartel. If we continue to cede our influence and refuse to increase output when it is economically called for, we will place ourselves – and our European allies – in an untenable geo-economic position.

While the US, with its ample hydrocarbon resources, can manage in the long term – it is strategically short-sighted to allow our European allies to become reliant on cheap Russian oil and gas. Biden is walking a difficult tightrope. Turning his back on his climate change commitments will certainly not play well with his Democratic base. At the same time, allowing oil and gas prices to skyrocket will inevitably result in Democratic losses for congressional elections in 2022 and could certainly play out in the 2024 presidential vote.




The most amusing part is that by making it harder for american oil to do their job, it just forces america to buy more oil from the middle east, where it will get loaded onto a heavy polluting oil tanker and shipped half way across the world, resulting in higher emissions. The whole green movement in a nutshell really. It's all about being seen to be doing something, by fudging numbers on paper, when you are really doing nothing at all.

[GASWAGON]

A bit of relief at the pumps at the moment but its not going to last long.

https://au.yahoo.com/news/cba-woos-b...230316771.html