All posts tagged: ieefa

Controversial NT golden shale well Amungee – doesn’t stack up economically: IEEFA

Commenting on a new report that Origin Energy erased all evidence of a frack well casing deformation in a submission to the NT Fracking Inquiry, Bruce Robertson, Gas/LNG Australasia analyst, the Institute for Energy Economics and Financial said:

“Apart from the very serious allegation that the Northern Territory Government and fracking Inquiry are implicated in a cover up by Origin, the hype of the Amungee well, in the Beetaloo basin does not match its economic reality.

“While Origin’s Amungee well is being touted as the golden child of shale wells, flow rates of gas are a fraction of those in the early US discoveries of shale gas in the Marcellus Shales[1].

“The claims by the industry that the Beetaloo basin will save the East Coast gas market are built on hope not on drilling results.  It is far too early to declare a major gas province from the small number of wells drilled and the disappointing results from those that have been.

“The Beetaloo is a remote gas province and piping costs to market are prohibitive.  Nearly all reputable commentators including Wood MacKenzie rate the Beetaloo a high cost field.

“The likelihood of development of a major onshore gas industry in the Northern Territory is low[2] due to the high cost of the gas, and prohibitive piping costs to market, in a low cost gas world.

“Pricing for long term gas contracts has fallen gain by around 20%. This runs counter to the narrative from the gas industry that the gas glut has past[3].

“With ever more production coming on stream between now and 2022 the global gas glut has not disappeared and pressure on global pricing in the medium term remains.

“The fact that Origin did not follow best practice and fracked too near a fault line resulting in deformation is lamentable and does not bode well for future activities in the Northern Territory.

END

[1] See page 21 for 2008 Shale production curves from the USA.  http://media.corporate-ir.net/media_files/irol/10/104617/PDAnalystMeetingSession1.pdf See page 63  for current Marcellus production profiles http://www.chk.com/Documents/investors/20161020_CHKAnalystDay.pdf

[2] Page 46 https://frackinginquiry.nt.gov.au/inquiry-reports?a=456790

[3] https://www.platts.com/latest-news/natural-gas/london/shell-ceo-dismisses-prospect-of-global-lng-glut-26882946

HoldfastControversial NT golden shale well Amungee – doesn’t stack up economically: IEEFA
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IEEFA Report: Winners and Losers in the Global Electricity Market

Company Leaders and Laggards Emerge; US$185 Billion in Lost Shareholder Value Seen Among Utilities Failing to Keep Pace; Solar and Wind Generation  ‘Can Now Consistently Outbid Fossil-Fuel-Based Generation’

A new report published today by The Institute for Energy Economics and Financial Analysis (IEEFA) shows how economies can make billions on solar and wind investment, and avoid the huge financial losses suffered by European utilities which bet on coal and other thermal power.

HoldfastIEEFA Report: Winners and Losers in the Global Electricity Market
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The gas ‘crisis’ is caused by a business model which restricts supply to Australians: IEEFA

Commenting on news that the Turnbull government will not place curbs on LNG exports, Bruce Robertson, Gas/LNG Australasia analyst at IEEFA said:

“The so called gas ‘crisis’ in Australia is not about supply. It is about a business model engineered by four energy companies – BHP, Origin Energy, Santos and Shell – to restrict supply to Australians in order to force prices up.

HoldfastThe gas ‘crisis’ is caused by a business model which restricts supply to Australians: IEEFA
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ACCC architects of the east coast gas cartel and domestic price gouging: IEEFA

Commenting on the Australian Competition and Consumer Commission’s interim gas report,  Bruce Robertson, Gas/LNG Australasia analyst, IEEFA said:

“The Australian Competition and Consumer Commission (ACCC) is one of the architects of the east coast gas cartel which has led us to a domestic energy supply crisis.

HoldfastACCC architects of the east coast gas cartel and domestic price gouging: IEEFA
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Another privately owned pipeline will fuel the ‘East Coast gas price crisis’: IEEFA

Responding to the construction of a new 622 km-long Northern Gas Pipeline owned by private business Jemena, Bruce Robertson, Gas/LNG Australasia analyst for the Institute for Energy Economics and Financial Analysis (IEEFA) said:

“Another privately owned pipeline in Australia will only fuel the gas price crisis, not lesson it as the majority of such pipelines are not subject to any pricing regulation and are hideously profitable.

HoldfastAnother privately owned pipeline will fuel the ‘East Coast gas price crisis’: IEEFA
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East coast gas problem: a cartel of producers controlling the market and gouging consumers

Commenting on the increase in electricity prices by up to 20% on July 1, Bruce Robertson, Gas/LNG Australasia analyst for the Institute for Energy Economics and Financial Analysis said: “Australians need answers for why gas prices have fallen globally in recent years while here they have risen to levels above the north Asian market, the most expensive market for gas.

HoldfastEast coast gas problem: a cartel of producers controlling the market and gouging consumers
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Ministery Goyal says India needs coal imports. IEEFA responds.

Commenting on reports that Energy Minister Piyush Goyal said India would be forced to keep importing coal, including from the proposed Carmichael mine in Queensland, Tim Buckley, Director of Energy Finance Studies Australasia at IEEFA said:

Some Indian power plants may have been designed to run on foreign coal, but they can no longer afford to do so. This can be seen by the economics of Adani Power’s 4.6GW Mundra import coal-fired power plant and Tata Power’s 4.0GW Mundra plant, both of which are no longer competitive.

HoldfastMinistery Goyal says India needs coal imports. IEEFA responds.
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