Category Archives: Resources

Graphic indication of Australian petrol price ripoff

There has to be a relationship between the cost of petrol in Australia and world oil prices. The ACCC has been in the news lately making various claims so I thought I would compare trends between world oil and pump petrol prices. I got world oil data from IndexMundi and ULP from the AAA. Full size chart.

Using these data the chart shows a period of relative price stability during all of 2010 where I am assuming no oil companies were going bankrupt – so the chart axes have been adjusted to bring WTI and ULP prices close for that period. 2011 saw world oil prices rise in AU$ but there was a period from Jun to Oct 2011 when the reduced WTI price produced no flow-on reductions in pump prices. Then again from Jun 2012 to Apr 2013 the reduced WTI price produced no flow-on reductions in pump prices. B marks a three month period where motorists might have clawed back some losses.
Then there was 12 months of relative price stability from Oct 2013 to Sep 2014 before the world oil price began its prolonged crash which is not ended even today. It is obvious that by the relative prices of 2010 pump prices should have remained a lot lower after Jan 2015.
Assuming Australia uses ~18Billion litres of petrol PA – the price gouging at say 2 yrs @ 10c per litre is of the order of $1,800Million PA extra lifted from motorists wallets. The Caltex CTX share price shows a marked appreciation after the start of 2014. I realize there may have been increases in Fuel Excise since 2010 but the amounts would be slight compared to the yawning gap in my chart.

AEMO wholesale electricity prices compared across four states

Updating my chart of daily AEMO RRP prices across SA, NSW, Qld, Vic – we see the great South Australian price explosion of June which affected all states. Then by mid July prices in NSW, Qld, Vic were crashed back to pre-June levels – SA prices took a week or two longer to fall. Looking at the 30 day smoothed trend. For large chart.

Queensland prices have risen post July and rival levels in South Australia – why would this be?
New South Wales prices have risen post July but recent softness leaves the 30 day average just above $50.
Victorian prices have fallen post July and now look similar to April 2015.
South Australian prices slumped into September but since October continue their starring role.
It is interesting that the lunacy of negative daily prices is appearing in NSW. Periods of low prices tend to be when winds are strong – check chart to MW. NemWatch gives a realtime picture of generation.

Stopping the Australian Coal Export Boom

Jo Nova has a blog – US donors funding activists to shut down Australian mines, ports and rail, approved by Hillary’s right-hand-man? Nobody there yet has referred to this stunning 2011 pdf report by the organizers that sets out their detailed multi-$million plans – Stopping the Australian Coal Export Boom – 17 pages must read only 3.75MB. The Rockefellers and Pew were in the campaign by 2011.
And now we have a useless Lame Duck Govt in Canberra and a Labour Govt in Queensland.
I mentioned this in August 2015
Rising coal prices are slowly defeating the Greens efforts.

Innovative variation on ABC anti-mining campaign

Rehabilitating abandoned mines could create thousands of ‘badly needed’ jobs opines the GreenLeft ABC.
In reply the Qld Mines Minister Anthony Lynham puts a logical view about disused mine sites.
He says – “…many old mines still contain valuable resources waiting to be exploited.”
“There are a lot of resources left in old tailing dams, old tailing deposits. I’d love to see resource companies come to us with innovative ideas of how they can access those deposits,” Dr Lynham said. “Rehabilitation can extinguish a resource.”
Great to hear a politician talking common sense.

Shut Hazelwood coal fired generators – what could go wrong

The weekend has seen a welter of speculation about the closure of Hazelwood neatly timed with a report by the Grattan Institute titled – Keeping the lights on. Victoria has the following coal fired generators – Hazelwood 1600MW –
Loy Yang A 2180MW – Loy Yang B 1000MW – Yallourn W 1450MW
Total 6230MW = possible max 149,520MWhrs per day
If Hazelwood shuts the total coal fired generating capacity reduces to 4630MW making for a possible max 111,120MWhrs per day if all units operated 24/7.

This chart of Vic daily generation by source (omits solar) shows the current dominance of coal – for large chart. I have marked with the pink X where a horizontal line would be drawn at 111,530MWhrs per day. So just below that would mark 111,120MWhrs per day. Without some way of replacing the reliable 1600MW capacity of Hazelwood – it seems amazing that the media run with this fairy-story.