Gas Producer Criticizes Ideological Ignorance, Predicts Shortage

November 12, 2024 TruthUSA

A domestic gas producer has criticized the risk to investment and the nation’s energy supply due to green tape and a “minority of activists with extreme views.”

Ryan Stokes, media boss and chair of oil and gas producer Beach Energy, highlighted the significant challenges facing the energy industry despite some progress on approvals from governments.

Regulators have raised concerns about a potential gas shortage in winter 2025 on the east coast, while increasing industrial energy demand and the exit of coal on the west coast are expected to create a supply deficit in that market in the 2030s.

“We are continually facing ideological rhetoric that is negatively impacting communities, economies, and gas supply,” Stokes stated at the annual shareholders’ meeting in Adelaide.

Stokes pointed out that gas projects still encounter extensive and expensive delays in obtaining environmental approval.

“The uncertainty and complexity of these processes make them vulnerable to legal challenges by a minority of activists with extreme views, posing a significant risk to new projects and hindering investment decisions,” he added.

The so-called “lawfare” involves using legal action by individuals and organizations to halt fossil fuel production or influence government climate and environmental policies.

“We only need to look at the mistake of forsaking attainable and practical actions for ideological reasons,” he said, referring to an exploration ban in New Zealand that has been reversed to enhance energy security.

CEO Brett Woods reported an 8% increase in the realized gas price for the year to $9.50 per gigajoule due to new contracts, a re-pricing of the Otway Basin Gas Sales Agreement, and higher spot prices during winter.

He mentioned that the recent launch of the Moomba carbon capture and storage project was a crucial moment for Beach Energy and the nation’s emission reduction objectives.

Earnings dropped by three percent to $950 million (US$620 million) in fiscal 2024, with sales revenue rising by nine percent to $1.8 billion despite a seven percent production decline to 18.2 million barrels of oil equivalent.

Woods also discussed challenges at the Waitsia project in the Perth Basin, one of Australia’s largest onshore gas fields, initially expected to start production in 2024. He expressed confidence in achieving initial gas production from the plant in early 2025.

“Once operational, the Waitsia Gas Plant will be essential infrastructure for the domestic market,” he emphasized.

Beach Energy shares dipped by one cent to $1.24 in early afternoon trading.

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