Friday, August 10, 2012

James Price Point: An economic analysis of the Browse LNG project | The Australia Institute

James Price Point: An economic analysis of the Browse LNG project | The Australia Institute:
The Institute's senior economist Matt Grudnoff. MATT GRUDNOFF: There'll be few if any economic benefits for the people who live in Broome and the surrounding districts. The majority of people on the project will, up to 97 per cent, will be fly-in, fly-out. It will affect the tourism industry. It’s likely to significantly drive up the cost of living, it is likely to put pressure on already strained health services and it’s also likely to push the exchange rate up. James Price Point: An economic analysis of the Browse LNG project gas. According to the Western Australian government’s own economic assessment, the Browse LNG precinct proposed for James Price Point is likely to have a significant adverse impact on the state’s budget, will employ few local workers and harm the region’s reputation as a tourist destination, a new analysis by The Australia Institute has found.

While there is little doubt that the Browse LNG development has the potential to deliver substantial profits to companies such as Woodside, there is also little doubt that the local community will suffer a higher cost of living during the construction phase and enjoy very few long-term benefits


  1. Anyone following the comments on Ben Collins article on ABC "the Drum"?

    In May 2011, the moral dilemma for environmentalists became more complicated again when a majority of native title claimants for the James Price Point area voted to support the gas development in return for a billion dollar plus compensation package.

    The Comments are interesting.

  2. Woodsides profit has been saved by the high price of oil in the past,bet they are watching this closely.
    Remember it is possible to strip the oil out of the gas at the source,no need to pipe it to the shore.This is how Inpex will do it.

    Thanks in part to technologies like horizontal drilling and hydraulic fracking, we are entering a new age of abundant oil. As the energy expert Leonardo Maugeri contends in a recent report published by the Belfer Center at the John F. Kennedy School of Government at Harvard, “contrary to what most people believe, oil supply capacity is growing worldwide at such an unprecedented level that it might outpace consumption.”

    “by 2020, the world’s oil production capacity could be more than 110 million barrels per day, an increase of almost 20 percent.” Four countries will lead the coming oil boom: Iraq, the United States, Canada and Brazil.

    Mr. Maugeri thinks the tipping point will be 2015. Until then, the oil market will be “highly volatile” and “prone to extreme movements in opposite directions.” But after 2015, Mr. Maugeri predicts a “glut of oil,” which could lead to a fall, or even a “collapse,” in prices.

    Until now, the arithmetic of oil supply and the agenda of environmentalists conveniently dovetailed. Since we were running out of oil anyway, environmentally motivated efforts to limit fossil fuel consumption and increase our use of renewable energy boasted the additional virtue of being inevitable. In an age of abundant oil, those economically utilitarian arguments lose their power.

    This will be one more reason for Woodside and their JV partners to take another look at Browse at JPP.
    The next time Woodside get into trouble,and they sure have a habit of doing so,there will be no high oil price to save them.