It sounds like a joke. And it would be.
Like Qatar and Saudi Arabia, Western Australia is a major producer of gas. In fact, if WA was a country, it would be the third-largest liquefied natural gas exporter in the world, beaten only by Qatar and the USA.
And yet last week WA Premier Roger Cook urged gas companies to develop large reserves off the coast of WA to deal with a “shortage.”
The premier is wrong. The so-called shortage relates to the fact that 90 per cent of gas produced in WA is used for exports, mostly to Japan and China.
WA produces more than enough gas; it just does not keep enough. Exporters use more of the fuel to run their own vast processing plants than any other industry in WA. The export plants burn twice as much gas as is used to generate power in WA.
And while huge amounts are exported from WA, it is not by West Australian companies.
A handful of multinational gas giants – Chevron, Shell, ExxonMobil and others – dominate the business.
Perth-based Woodside does not disclose its level of foreign ownership, although at least 23 per cent is with American investors.
Overall, gas exports from WA are at least 80 per cent foreign-owned.
This matters for two reasons.
First, the foreign companies that control WA’s and Australia’s gas resources do not necessarily act in the best interests of the state or the country.
A WA parliamentary inquiry recently investigated the operation of the state’s domestic gas reservation policy.



