How will the Coalition lower energy prices by increasing gas usage? | 7.30

Key Concepts:

• Energy prices as a function of supply and demand.
• Gas supply shortage, particularly in southern states of Australia.
• Increasing gas supply to lower energy prices.
• Audit of identified gas reserves (143 petajoules).
• Removing blockages to bring gas to market more quickly.
• Direct gas usage in manufacturing, households, and electricity generation.

Increasing Gas Supply to Lower Energy Prices

The core argument presented is that increasing the supply of gas will lead to lower energy prices in Australia. The speaker directly addresses the apparent paradox of lowering energy bills by increasing the use of gas, which is currently the most expensive energy source.

Supply and Demand Dynamics

The speaker emphasizes that energy prices are fundamentally a function of supply and demand. The current high energy prices are attributed to insufficient supply, especially in the southern states.

Addressing the Supply Shortage

The proposed solution is to increase the supply of gas. The speaker states a commitment to bringing on more gas projects to address the supply shortage.

Audit of Gas Reserves

Within the first 100 days, an audit will be conducted of the 143 petajoules of gas identified by the Australian Competition & Consumer Commission (ACCC). The purpose of this audit is to identify the "blockages" preventing these reserves from reaching the market.

Removing Blockages and Bringing Gas to Market

The goal of the audit is to understand how to bring the identified gas reserves to market more quickly. By removing these blockages, the intention is to increase the overall gas supply.

Impact on Energy Prices

The increased gas supply is expected to "push down prices." This reduction in gas prices will benefit various sectors:

• Direct Gas Usage: Lower prices will make direct gas usage cheaper for manufacturing and households.
• Electricity Generation: Cheaper gas will also reduce the cost of electricity generation, as gas is used as a fuel source for power plants.

Priority

The speaker clearly states that increasing gas supply to lower energy prices is the government's priority.

Notable Quotes:

• "Prices are a uh a function of demand and supply and we don't have enough Supply particularly into the southern states."
• "We have said that will do an audit within the first 100 days of the 143 pedig of gas that's been identified by the A C to understand what are the blockages."
• "Bring more gas into the market push down prices which means that it will be cheaper for uh direct gas uh usage whether it be in manufacturing or households or into electricity generation and that is our our priority."

Conclusion

The main takeaway is a commitment to lowering energy prices by increasing the supply of gas in Australia. This involves auditing identified gas reserves, removing obstacles to bring them to market, and ultimately reducing the cost of gas for direct use and electricity generation. The strategy hinges on the principle that increased supply will drive down prices, benefiting both households and industries.