The week in review
This week has undoubtedly been all about gas and taxes.
And – with the final day of three public hearings to take place in Perth today as part of the ongoing senate select committee into gas sector taxation – possibly the most vociferous pushback from industry is yet to come.
Because today representatives (note, not CEOs as (poor form) no CEOs opted to front the inquiry) from Woodside, Chevron, INPEX, Santos and Australian Energy Producers (AEP) will give their testimony to the committee.
And while none of them would admit it, it could just be that this inquiry - when combined with the efforts of the Australia Institute, the attention sparked by senator David Pocock's beer tax viral social media moment and the increasing weight of public opinion brought about by Iran-driven price spikes – might just have got some of those CEOs a bit worried.
You may have noticed some adverts around at the moment, promoting the role of gas and pushing back against the merest suggestion that a higher taxation model on these resources might be a good thing.
These ads are part of a multi-million dollar advertising blitz being paid for by gas companies to fight the idea of an export tax.
Speaking at the inquiry hearing on Wednesday's Shell Australia's Country Chair Cecile Wake said the campaign was needed to "counterbalance" the "very selective" claims by supporters of a levy.
Likewise, AEP – the industry's peak body – which, according to latest Meta data, has spent $170,500 pushing pro-gas messages on Facebook and Instagram in the 30 days to 19 April.
And today as their CEO prepares to answer the senators' questions at the committee hearing, AEP has put out new research which shows that with no change to the current tax settings, Australia's oil and gas industry would deliver almost $160 billion in taxes and royalties to governments over the next five years if the current high international prices persist.
The AEP claims this represents around $80 billion more than under typical long-term price assumptions equating to nearly $17 billion per year in additional revenue flowing to federal and state budgets.
Notably $17billion per year is exactly what the pro-tax lobby claim the proposed 25% windfall tax would generate.
Amazing, eh?
It strikes me that if the gas industry is right and that the question of whether a gas tax is a good or bad thing is a no brainer – cue suggestions that the industry would crumble, investment would dry up and prosperity would pack its bags and leave Australia – then why do the sector need to bang the drum so loudly and so expensively.
"The lady doth protest too much, methinks."
Must dash, I'm off to the inquiry hearing – you can read my report later today.
Yours,
Russell Yeo
Editor Energy News Bulletin
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