Australia Institute research has repeatedly shown that there is no gas shortage in Australia, and that we have enough gas to supply the domestic market many times over. Instead, the vast majority of gas extracted in Australia is sold overseas.

Diverting uncontracted gas from exports to Australians is a quick, easy, and effective way to ensure Australian gas is for Australians first.

All sides of politics have acknowledged that there is no gas shortage in Australia, with Chris Bowen telling the National Press Club earlier this year that Australia has “plenty of gas.”

“People say we have plenty of gas in Australia and that is true, a lot gets exported,” said Chris Bowen, Federal Energy Minister, during an election debate.

The Coalition acknowledged Australia has an abundance of gas, putting forward the sensible idea of a tax on gas exports to ensure our gas flows first to Australian businesses and households.

Australia Institute research shows:

• 80% of Australia’s gas is exported (90% in WA, 70% in the east coast).
• The gas industry is engineering shortages to push for the approval of new projects that will allow them to export more gas without increasing the supply to Australians.
• Gas exports have led to a tripling of wholesale gas and electricity prices on the east coast, driving up household energy bills.
• 56% of Australian gas is given away royalty-free
• No gas export project has ever paid Petroleum Resource Rent Tax.
• Australia collects more revenue from students’ HECS than the Petroleum Resource Rent Tax.
• Nurses pay more tax than oil and gas companies.

“The consultation paper for the review refers to a “crisis of supply”.  Our research suggests there is certainly a gas crisis in Australia, but it is a crisis of integrity, not supply,” said Mark Ogge, Principal Advisor to The Australia Institute.

“Successive governments have allowed this industry to take vast sums of Australian gas, sell it at a huge profit on the export market, price-gouge us for our own gas, then claim there’s a shortage here, which has led to skyrocketing prices for Australians.

“This review is unnecessary, and the government could fix the issue tomorrow by diverting uncontracted gas from exports.

“However, everyone on all sides of politics agrees there is no gas shortage, so any review that includes new gas is clearly not fit for purpose.

“The Prime Minister talks about progressive patriotism. Here is a chance to put that into action. At a time when so many Australians are doing it tough and governments are recording massive deficits, here is an opportunity to do something which can help the nation pay for the things it needs, like the NDIS, improvements to Medicare and our education system.”