[Peakoil] Australia's gas fields - and Alcoa

[Keith Thomas]

The following is from Crikey.com.au today:


Alcoa wrapping itself in the Aussie flag – for money

Michael Pascoe writes:

  Patriotism is the last refuge of the scoundrel, observed Samuel 
Johnson. And it's not bad for naked self-interest either. Just ask 
Alcoa.

Oz energy writer Nigel Wilson reports the world's biggest aluminium 
company wants the West Australian government to reserve 15 to 20% of 
all offshore gas fields for domestic use because “there is a material 
risk that, in the absence of near-term government intervention, the 
availability of gas will be constrained and the price of gas 
significantly increased”.

  No, Alcoa isn't really concerned about security of supply – it just 
wants the government to force gas producers to subsidise the price of 
producing alumina at its three WA plants. Reserving 15% of offshore gas 
for domestic use simply means WA would be awash in very cheap gas 
bearing no relationship to international prices – and that's just what 
Alcoa wants. Very cheap gas means very cheap electricity which is what 
Alcoa is all about.

  It's only a slight change from getting state governments to just 
subsidise electricity prices outright – the result is the same.

  Australia enjoys very cheap energy. Our extremely cheap coal helps 
keep down what domestic gas producers try to get paid. Those gas 
producers lacking the scale required for LNG operations look longingly 
at foreign markets and their much higher prices. And now Alcoa, for its 
own self-interest, wants the gas exporters to feel some of the same 
pain.

  The danger is that some populist state government might go along with 
it.
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