ExxonMobil brings ahead Bass Strait finances overview as worth caps loom


“New fuel developments usually are not merely a matter of flicking a change,” ExxonMobil’s spokesperson stated. “They require intensive planning, assets and capital in addition to steady regulation with a purpose to ship vital vitality provides to Australian households and companies.”

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Final week, Woodside chief government Meg O’Neill informed traders that worth caps would pressure the corporate to rethink new spending on the property, too. “If there’s a worth cap it is extremely arduous to see these alternatives being engaging, to be actually blunt,” she stated.

A gas rig at the West Barracouta wells in the Bass Strait.

A fuel rig on the West Barracouta wells within the Bass Strait.

East-coast fuel costs have soared this yr, driving file gross sales income for fuel producers together with Woodside, which reported greater than $9 billion in gross sales for the September quarter alone.

Costs proceed to spike because the warfare in Ukraine has deepened a worldwide vitality scarcity, as Western nations shun Russian provides and intensify competitors for any out there cargoes of liquefied pure fuel (LNG). On the similar time, chilly climate has mixed with a sequence of failures at Australia’s ageing coal-fired energy stations to drive up demand for gas-fired electrical energy era.

The manufacturing sector has been urgent the federal authorities to set a $10-a-gigajoule cap on wholesale fuel costs, warning factories that rely on fuel for vitality or as a uncooked materials are struggling to remain viable underneath costs at present buying and selling at greater than $20 in Australia’s south-east.

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For households, the variety of clients with unpaid vitality payments of greater than $2500 has risen by an alarming 39 per cent, the vitality regulator says, as fuel costs have risen by as much as 15 per cent and energy payments by as much as 20 per cent.

Nonetheless, coal and fuel firms, whose income stands to be affected, are ramping up warnings that such a transfer may deter funding wanted to develop new sources of home provides that might be essential to placing downward strain on costs within the longer run.

The fuel trade insists one of the simplest ways to drive down costs is to extend regionally produced provides nearer to the demand centres in Victoria and NSW, the place demand is highest, however conventional offshore fields are quickly drying up.

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