The CEO of Woodside Petroleum Limited (ASX: WPL) expressed his discontentment in regard to the lack of political and commercial leadership in Australia. He recommended the reservation of the domestic gas and also introduce terminals to the east coast gas problem. He also called the federal government to accept the international challenges by setting the price on carbon.
He criticizes the government of being satisfied with the existing scenario, having hesitancy and negative politics.
In the introductory speech of sweeping themes, Coleman says that one should stay away from saying no and work together to tackle the big challenges we come across in order to establish a common purpose. Politicians, community leaders, and industry have equal responsibilities to tackle any upcoming challenges
Coleman speech covered from climate change to the risks that are associated with the unintended market based on the piecemeal approach to policy and regulation. His speech also covered the need for the carbon pricing and its outcome that will be reflected in the market. This was an inspiration for Woodside's customer who tried to investigate the game-changing potential of hydrocarbon economy. He also blamed ACCC who provided few producers of the gas an opportunity to increase the price of the gas in the domestic market. These gas producers set the export pricing as their benchmark. Coleman also observed that there was a lack of appropriate pricing which has an adverse impact. Coleman prefers that local carbon tax should have the international benchmark with an average lagged price and should be mitigated by international carbon offsets.
Coleman also asks businesses to give up hopes in regard to any clear idea that will be provided by the government to the emission response. He also states that the risk is too great if no action is taken. As companies what better can be done is that they can take a unified approach to secure the emission reduction keeping in mind the economic competitiveness, improve urban air quality while accessing modern energy. Coleman has also planned to establish LNG as an emissions effective transport fuel which will soon get completed.
He said that WPL is working together with the resource and shipping partners under Green Corridor Joint Industry Project to design LNG designed vessels that can export the resources to the world. This will also be an opportunity for Australia to become a world leader. After seeing that government plays an important role in providing incentives for developing low carbon economy, Coleman said that it is the customers who can create pressure on the government.
He also said that Woodside is ready to embrace the potential of hydrogen as a transformative technology and the company is discussing to access pilot plant for LNG hub. Coleman also highlighted the origin of the east coast’s gas problem. The onshore producers were not able to develop the resources as expected by their joint development of $80 billion. The domestic industries did not pay any heed to the price risk as they failed to arrange any refined buying strategies which are advisable to those companies who depend on gas. The politicians also interfered aggressively in the export markets with tools that have weakened security. This led to the uncertainty that is dangerous for any new investments. In order to manage the resources of the nation, one must try to deviate from such mechanisms that try to control prices after making investments.
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