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Australia faces an “acute” problem in maintaining its place as one of many world’s main power suppliers within the face of Donald Trump’s push to extend fossil gas output, the pinnacle of the nation’s largest oil and fuel producer has warned.
Meg O’Neill, chief govt of Woodside Energy, issued the warning on Thursday on the Melbourne Mining Membership, the place she argued that Australia “loses on each entrance” to the US resulting from greater taxes and labour prices and environmental rules.
“Australia is just not competing,” she mentioned, pointing to what she known as ideological opposition by some state governments to new oil and fuel initiatives and layers of environmental and allowing rules which have delayed installations wanted to fulfill home power wants.
“Australian corporations of the longer term will want dependable, reasonably priced power,” she mentioned, pointing to the Trump administration’s efforts to decontrol the sector and spur new power funding. “In a rustic as fortunate and resource-rich as Australia, it could be a significant coverage failure if we aren’t in a position to obtain this.
“Amid rising international protectionism and even larger competitors for capital, Australia should sharpen its aggressive benefit,” O’Neill added.
Australia is set to hold a national election by Might 17, and O’Neill anticipated power to be on the centre of the marketing campaign amid a value of dwelling disaster. Australian shoppers have been saddled with greater electrical energy costs resulting from rising wholesale prices, main the federal government to introduce subsidies.
However O’Neill mentioned costs would rise additional within the coming years as dwindling home provide forces some states to import fuel for the primary time. “Australia’s power safety and ongoing nationwide prosperity are what’s at stake,” she mentioned.
Woodside, which has a market capitalisation of A$47bn (US$29.5bn), has emerged as Australia’s largest oil and fuel firm after it merged with BHP’s energy assets in 2022. It produces liquefied pure fuel — Australia’s most profitable export behind iron ore and coal — off the coast of Western Australia and within the southern Bass Strait between mainland Australia and Tasmania.
Australia, alongside the US and Qatar, is likely one of the world’s largest international suppliers of pure fuel, accounting for a fifth of worldwide LNG commerce. About 90 per cent of the nation’s LNG exports are despatched to Asian nations, in response to authorities knowledge, notably Japan and South Korea.
However O’Neill warned that Australia’s repute as a dependable buying and selling associate in Asia was “wobbling” resulting from interventionist insurance policies by Prime Minister Anthony Albanese’s Labor authorities, resembling price caps and export controls to guard home provide.
In the meantime, Donald Trump has sought to roll again his predecessor’s inexperienced power agenda and enhance pure LNG exports.
Woodside has expanded internationally since 2021, together with within the US, the place it accomplished two large acquisitions final 12 months. O’Neill mentioned this worldwide focus was partly as a result of pace of approval for brand spanking new initiatives in markets outdoors Australia and what she known as “wishful considering” within the debate across the nation’s power transition.
She highlighted the corporate’s battle to increase an current challenge in Western Australia, which remains to be awaiting last approval from the federal government six years after it was proposed.
