In this case, I’m talking about those who are trying to regulate gas prices in Europe. But they obey the Americans in everything, constantly bowing and bending every time they are given a command. This is not a team – they would just listen to what American experts say. Friedman, a well-known economist, Nobel Prize winner, said a wonderful thing: if you want to have a shortage of tomatoes, impose a price limit on tomatoes, tomorrow you will have a shortage of tomatoes. They do the same here with gas and oil – the same thing.”
KGB alumnus Vladimir Putin has a better understanding of markets than Albo (B.Econ).
The government just prints more money to give away. The question for me is what happens to the AUD if the petrodollar is no longer all powerful? Are we propped up by the USD? Will we simply be able to sell coal, lithium, uranium etc and just plod along? The lucky country.
You must be mistaken. With my own hears I heard Albanese declare that putting a price cap on gas would in no way discourage gas mining and exploration. So there.
the vast majority of coal and gas is exported and gets supernormal profits at present. There is no problem with supply.
Albo should have adopted what Rod Sims stated.
The Federal government has the control of export licenses.
No country allows companies to exhort world prices when it is their resources they are taking.
Take one example their cost of production are $5/ gigoule and they are screaming they only get $12/gigoule. They want to charge almost three times that.
If that hapless water buffalo Abbott had not gotten rid of the price on carbon we would not be worrying about the massive rise in fossil fuels that CL demands australians should pay
Non Trampis, please explain how a carbon tax would shield us from fossil fuel price rises caused by the Biden inspired sanctions on Russian energy exports.
In the end the energy shortages will be blamed on the unreliability of coal and gas plants. You watch.
NT once again exposing his ignorance of export pipelines vs pipelines for domestic supply. Qld CSG was built from the start for export. All its big pipelines go to the terminals at Gladstone, with the pipelines to NSW very small and limited capacity.
At the time there was plenty of gas produced in NSW and Vic for the domestic market, so why would Qld try to muscle in? And NSW and Vic had plenty of new projects in the development pipeline in these states to replace the ageing existing fields. Then those new fields got outright banned or put through development hell.
The voters in NSW and Vic can go to hell as far as I am concerned. Live with the consequences of your actions, instead of being a bunch of barnyard animals attacking the Qld little red hen.
As pointed out, domestic price caps will do absolutely nothing to encourage Qld CSG producers to sell domestically instead of exports. To avoid the consequences of their actions, the interventionists will eventually have to impose supply demands and regulate to make a difference in the end. This will be a big step for the feds, as States control their resources. The only alternative would be to bribe Palaszczuk with lots of OPM for Qld. Or threats: nice Olympics you were thinking of there, Premier. I reckon Albo would go the OPM route.
Petros:
You forgot Aluminium, we produce a large slab of teh world’s supply.
Of course, once we have shut it down through onerous energy price increases, we will have plenty of electricity for other purposes. It is about 15% of our energy consumption that could be diverted to the voters. Pity about the export revenue.
Ahh yes, a carbon tax would have miraculously encouraged more companies to spend millions of dollars investing in exploring for and bringing to market more gas and coal. Cretins like the Trampis are all for globalisation until it exposes the idiocy of their platform, then apparently companies that invest their hard earned are no longer allowed to take the global price for their investment.
Given south Australia has 100% renewables the manufacturing of solar panels and wind turbines should be cheapest there…
for the economic illiterates or deplorables it is the same thing a price on carbon would have led to a much quicker transition to renewables.
No company would have tried to get the last cent out of unreliable coal fired power stations.
Buccy shows again his supreme ignorance of economics. The companies are receiving super normal profits for everything they export which is most of the coal and gas we have. WE, Australia.
They would still be making large profits from either coal or gas at a lower domestic price just like in WA.
Non Mentis
If that hapless water buffalo Abbott had not gotten rid of the price on carbon we would not be worrying about the massive rise in fossil fuels that CL demands australians should pay
But, but, but, you have assured us that intermittent ruinables generation is so cheap, surely a price on carbon is unnecessary. Or are you just making it up?
Non Mentis
for the economic illiterates or deplorables it is the same thing a price on carbon would have led to a much quicker transition to renewables.
So why are you complaining about the increased price? Surely it meets your objective?
Or are you too stupid to connect your thoughts together? As is to be expected of a pre-school failure?
How can any company be receiving super normal profits when governments keep threatening to ban the product they are selling. Markets simply reflect risk vs reward, it’s folks like you real Trampis who don’t understand the basis of economics, you constantly tell us we should make markets for energy more risky while loading the system with generators that make the market more unstable therefore creating demand for higher risk power. Your crappy carbon tax does the same thing.
Non Mentis
Please use your economic genius to advise us what effect capital investment of between $80 billion and $500 billion for new transmission lines will have on electricity prices once we are fully dependent on intermittent solar and wind generators.
Non Mentis
Please address specifically the effect on the grid/network access charge, by whatever name it currently is known.
Just bring on teh blackouts.lets get it done.
The only thing intermittent is electricity from coal fired power stations. units breakdown on average once every three days in summer it of course gets worse and AEMO has headaches about potential blackouts they may cause.
The price on carbon is necessary because of negative externalities. Pigou was the architect of this. These costs needs to be internalised otherwise the market does not work. Alas this is too much for deplorables to understand.
buccy I know you aint the smartest bloke around but the government is not saying they are going to ban anything. nor is anything going to be more unstable.
This story was based on a story in the OZ which is right up there with Pravda for accuracy. coal stations do need coal to operate unless their units are breaking down again. How much coal would they need and the compensation is what?
Last blackout in Melbourne was due to coal fired power. We almost had blackouts in NSW in the winter. Why coal fired power.
ROFLMAO. Non Mentis repeats the same assertions he has made multiple times before, and again provides absolutely no evidence to support those assertions. Let’s unpack them, and highlight the facts he is either unable or unwilling to provide (probably the later, as the actual facts won’t support his assertions.
The only thing intermittent is electricity from coal fired power stations.
Strangely, he ignores the reality that coal fired power stations provided reliable, continuous, power for decades before intermittent ruinable generators came onto the scene. He will respond that there was a level of redundancy built into the system (as is essential to ensure uninterrupted supply, electricity is an essential service. He either does not know, or does not wish to state the level of redundancy. Was it 5%, 10%, or a higher number? He will not say.
Why will he not say? Probably because the next question is what level of redundancy will have to built into intermittent solar and wind generation, to ensure a reliable, continuous supply of the same essential service. Solar generators have a capacity factor of around 20 to 25%. The rest of the time they [provide nothing of value. Wind generators have a capacity factor of between 30 and 40%. Even solar and wind proponents expect that a redundancy level of multiple times the nameplate capacity will be needed. Some suggest up to 800% redundancy. Only an idiot would say that weather dependent generation is not intermittent.
Then there is the capital cost, estimated as between $80 billion and $500 billion for the new transmission lines necessary to connect remote, low density, intermittent solar and wind generators to their customers. Non Mentis, despite claiming to be an economist, is unable or unwilling to estimate the effect on future power bills of this previously unnecessary cost.
The price on carbon is necessary because of negative externalities. Pigou was the architect of this. These costs needs to be internalised otherwise the market does not work.
A useful point, compared to his usual assertions. However, the negative externalities of ruinables need to be taken into account, and taxed also. These include the use of child slave labour to mine essential minerals, the highly polluting processing of rare earth minerals essential to wind generators (this pollution has been effectively exported to China), the huge quantities of high CO2 concrete and steel required for them, and the requirement to send “dead” solar cells and turbine blades to landfill, because they cannot be economically recycled. He ignores these matters,
nor is anything going to be more unstable.
This silly comment demonstrates that Non Mentis has no idea of such technical issues as frequency control, essential to avoid frequency variations that damage or destroy items connected to the grid. When the spinning generators go, frequency control, previously an effectively free benefit from the inertia of the generators, will need to be provided at a cost.
Non Mentis is an academic idiot, who should be locked up in a seminar room, and shown to the more intelligent students as a horrible example of theory disconnected from reality.
BJ well done, the Trampis is as the urban dictionary describes, but even more, a clueless imbecile who repeats endlessly the same sad narratives he wants to be true rather than the actual truth. It’s the reason his sad blog attracts no actual dialogue.