John Kehoe, North America Correspondent for the Australian Financial Review, wrote a piece today that caught my attention: Lessons from the US for Australia’s Energy Crisis. Kehoe pointed out how the United States won’t suffer from the gas shortage issues that Australia faces. His key points:
- The United States has an incredible national natural gas pipeline network that serves all U.S. regions. Australia does not (yet).
- U.S. landowners own the oil and gas (mineral) rights under their land. Australians do not. Thus, there is little incentive to drill in Australia, thus limiting supply.
- Government regulations are generally more favorable (including for hydraulic fracturing) in the United States than in Australia and President Trump wants to improve this situation even further.
Kehoe gets it right: When it comes to natural gas, (thankfully) the United States ain’t Australia! We have abundant natural gas supplies and pipelines, relatively reasonable regulations, and incentives to keep the U.S. shale revolution going.