Thick as two imported bricks

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Nothing can save a nation that is this stupid and corrupt:

One of Australia’s top manufacturers, explosives maker Orica, said high gas prices were a critical issue for the nation amid concerns supply shortages would damage the economy with little sign of significant new volumes emerging. “Our Australian manufacturing operations continue to face challenges from the unreasonable cost of local natural gas and electricity prices,” Orica chief executive Sanjeev Gandhi said.

“A Future Made in Australia is important, but it is crucial we protect existing sovereign capability now. All manufacturers in this country are struggling with high energy and raw material costs and urgent action is needed to protect manufacturing jobs in the country.”

Petrol station giant Viva Energy said the competitiveness of major gas users was being lost to rival countries. “It is very challenging,” chief executive Scott Wyatt said. “We have continued to call it out, but energy costs have continued to go up considerably at our refinery at Geelong.

“We are competing with other refineries overseas. We are competing against refineries in other countries that enjoy significantly lower costs than we do here. That is a big problem … It does threaten the long-term viability of businesses like ours.”

Australia’s largest bricks maker, Brickworks, said Australia must urgently develop significant new sources of gas, including Santos’s Narrabri project – a development that has been held up for years in reviews.

Brickworks general manager of energy Melissa Perrow said the development would be much needed, but she said the industry was gravely concerned about what would happen as soon as 2026.

Nothing to fear here. It is only bricks, explosives and petrol telling you they are all being put out of business by China’s east coast gas export cartel.

No worries! We will still have Albo’s crazy-expensive solar panels assembled here from Chinese-manufactured components.

We can build houses out of them. Run our cars on them. Throw them at China if it invades.

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Or it can just stop providing the components and have us throw dirt at its tanks.

Here’s the latest gas cartel atrocity. Gas prices are absolutely glued to Albo’s ridiculous $12Gj mandated price:

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Narrabri will not save us. Its volumes will simply displace other volumes that will be exported to keep the market tight.

Australia will die if the gas cartel is not addressed with blanket domestic reservation or export levies.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.