Stories tagged with "australia"

Infrastructure Australia's Report to COAG

Stuart McCarthy and Matt Mushalik have been poring over the detail of Infrastructure Australia's Report to the Council of Australian Goverments (COAG). Stuart made a submission to Infrastructure Australia which we wrote about in November.



Stuart:

Below is an excerpt from the Infrastructure Australia report to COAG. A few quibbles with some of the detail, but nonetheless this is a big step in the right direction. To my knowledge this is the first Federal Government agency to acknowledge peak oil, and not in some vague 2030 timeframe.

Infrastructure Spending, Peak Oil And The Green New Deal

Tasmanian Greens Senator Christine Milne made a good speech in the Senate this week about infrastructure spending and how we can solve peak oil, global warming and energy security issues in one go by shifting to an expanded, smarter grid with large scale renewable generation - and at the same time address the problem of our economic dependence on fossil fuels, which becomes ever more risky to our economic well-being as time passes by.

From Hansard (PDF - starting at p38):

I rise today to support the Nation-building Funds Bill 2008 and cognate bills. It has been apparent for some time that Australia desperately needs to invest in infrastructure, and there has been a dearth of that in the last 10 years of the Howard government. There has also been in that time incredible pork-barrelling and failure of many of the public-private partnerships, which delivered us some white elephants around the country that the community is going to long live to regret. We have now a coincidence of a global financial crisis and the climate crisis. Indeed, we have peak oil as well.

Low Temperature Geothermal Power

The ABC recently had a report on plans to power north-west Queensland with low temperature geothermal power using hot water from the Great Artesian Basin.

A Brisbane-based company says it could supply geothermal power to all of north-west Queensland. Clean Energy Australasia wants to build a $50 million geothermal power station near Longreach. But it has now also revealed plans to build a pilot geothermal project near BHP's Cannington mine at McKinlay, south of Cloncurry. The company's Joe Reichman says the Mount Isa region needs about 500 megawatts of power a year and geothermal resources could easily provide that. "It'll change the region into a powerhouse," he said. Mr Reichman says the company has applied for federal and state government grants and has support from the major mining companies in the region. If the projects proceed they would be the first geothermal power plants in Australia.

Low temperature geothermal power is a relatively new (and very low profile) form of extracting energy from geothermal sources that provides yet another option for meeting our energy needs cleanly and sustainably.

Australia: A Rising Source for LNG Exports Using Coal Seam Gas?

Based on recent posts like "Will the UK Face a Natural Gas Shortage this Winter?" and "ASPO comments regarding Spain", it looks like Europe will be looking for additional sources of LNG supplies in the next few years. The question is whether there will be sufficient supply available.

One source of supply that may not have been considered is LNG from Australia. Australia has begun developing its unconventional natural gas production, and may in fact be able to ramp up its exports in the next few years — if not to Europe, to other countries in need, freeing up LNG exports from elsewhere for Europe.

There had been persistent concerns that the east coast of Australia would suffer a shortfall of gas supplies as the Cooper Basin and Bass Strait natural gas fields declined, with the possibility of constructing a pipeline from Papua New Guinea to meet demand being considered. These fears have subsided in recent years as large quantities of coal seam gas (CSG) have been discovered. The new gas production has not only proved sufficient to offset declines elsewhere, but quantities are large enough to result in a rush to export surplus gas in the form of LNG.

In recent months we've seen a surge in the stock market valuations of coal seam gas producers, triggered by a bid by BG for Origin Energy - one of the major players in the sector - a few months ago. The bid eventually failed, with Origin instead choosing to partner with Conoco Phillips in a CSG to LNG development, with Conoco paying $US9.6 billion ($12 billion) for a half-share of Origin Energy's CSG assets.

BG's interest was triggered by a desire to locate new sources of gas for their LNG export markets, particularly in Singapore - and they are just one of a number of players interested in turning Australian CSG into LNG and exporting it to markets in Asia and elsewhere.

In this post I'll look at recent events in the industry and what they mean for Australian gas production in future.

Tuckey's Tidal Dreaming

The ABC has a report today noting that Wilson "Ironbar" Tuckey is still promoting his vision of large scale tidal power generation in the Kimberly region in Western Australia.

The Federal Government expected to release their white paper on Australia's future energy needs next year and the use of tidal power in the Kimberley is expected to be one of the options under consideration.

There are renewed calls for the development of renewable energy in the Kimberley, with the federal Member for O'Connor spruiking the merits of tidal power. Wilson Tuckey wants the Commonwealth to spend $10 billion establishing the necessary infrastructure for a tidal power industry in the region.

Mr Tuckey says tidal energy could provide 10 times the country's current electrical capacity without producing any carbon emissions. He says the Commonwealth should fund start up infrastructure before commercial interests jump on board like the State Government did with the North West Shelf. "This will be the same. If the Australian Government puts in the original tidal generating capacity and the interconnecting transmission lines, which is probably the most important, the Kimberley will then see a rash of people charging in to produce that same electricity from other localities," he said.

Better Place - Bringing Electric Vehicles Powered by Renewable Energy

Project Better Place founder Shai Agassi was in town last week announcing that Australia will become the third country, following Denmark and Israel, to implement the group's vision of electric vehicles powered by renewable energy.

Better Place and Macquarie Capital Group will raise $1 billion to build a network of 250,000 charging stations and battery exchange stations in key locations along the east coast by 2012. The network will be powered by wind turbines owned by AGL Energy.

Agassi has been promoting the plan as a way to reduce our dependence on oil (the starting premise for the project was "how do you run an entire country without oil") while creating jobs and boosting the local economy (see this interview on the Today Show for his explanation). Operating in Australia will also help the group prove it can work in large countries as well as the much smaller geographical areas covered in the first 2 rollouts. Agassi also noted that the Federal Government's $500 million Green Car Innovation Fund played a part in encouraging them to set up in Australia.

Oil Supply and Petrol Prices

This is the executive summary of a briefing paper by Stewart Smith, published by the Research Service of the Library of the Parliament of NSW. The full paper can be found here (pdf).

The transport sector consumes 41 percent of final energy consumption in Australia, with the demand for transport energy growing at about 2.4 percent per year. Road vehicles moving passengers and freight account for 75 percent of transport fuel use. The Australian and international economy are deeply reliant on the supply of abundant petroleum resources at reasonable prices. However, significant challenges are confronting the petroleum and transport industry, both domestically and internationally. The first of these is tight supplies of crude oil, coupled with a growing market base of emerging economies. The second is the necessity to reduce greenhouse gas emissions to prevent dangerous climate change. This paper focuses on the former issue, and explores the factors contributing to the price of petrol in Australia.

The proven world oil reserves at the end of 2007 were 1,237.9 thousand million barrels, enough to supply the world at 2007 levels of consumption for 41.6 years. World distribution of proven oil reserves is heavily weighted to the Middle East (61%). The Asia Pacific region has the least, with just 3.3% of total proven reserves. At the end of 2007, Australia had proven reserves of 4.2 thousand million barrels of oil, which at present rates of production would last 20.3 years.

Coal Seam Gas Still Hot - BG Tries Again

In my recent post on coal seam gas (CSG) I noted that BG's bid for Origin Energy was the event that kick-started the boom in interest in Australian CSG producers.

BG's bid for Origin eventually failed (with ConocoPhilips instead buying a share of Origin's CSG assets), but they have now returned to the fray - this time with a $5 billion bid for QGC (Queensland Gas Company).

BG already owns 9 per cent of QGC (and 20 per cent of QGC's CSG reserves) and is keen to secure supplies for planned LNG export plant at Gladstone.

Peak Oil In The New South Wales Parliament

Sydney Lord Mayor Clover Moore recently addressed the NSW State Parliament on the subject of peak oil (via Energy Bulletin).

Tonight I speak about a serious concern of my constituents about the consequences of peak oil, which will have grave local and global impacts. The term "peak oil" refers to the stage when global oil production peaks and future oil production begins to decline. With the global demand for oil increasing rapidly, production declines are predicted to result in severe petrol price increases as buyers compete for supplies. Given the dependence on oil, including for energy, food, travel and consumer products, disastrous impacts on the global economy are expected. While some say peak oil has already hit and others say it will occur in 2030, it is essential that we prepare. New South Wales and Sydney's over-reliance on petrol makes us extremely vulnerable to impacts, and we must protect current and future generations. Given the consequences of peak oil and the serious threat of global warming leading to climate change, governments have a responsibility to urgently reduce our dependence on fossil fuels.

Solving Climate Change without Pain

This is a guest post from Garry Glazebrook of UTS (the University of Technology, Sydney).

After listening to Al Gore, Nicholas Stern, Ross Garnaut and Tim Flannery, it is now obvious to most thinking people that we have to address climate change, and soon. It is becoming equally clear that the fall in oil prices over the last few months is only a temporary respite, brought on by a faltering world economy, and that oil prices will likely surge again as soon as the economy recovers. The implication is a need for massive investment in renewable energy, energy efficiency and sustainable transport. But how to fund such investment without sacrificing our economy, jobs or lifestyles?