A report finds that the expansion of hydraulic fracturing operations in the Lake Eyre Basin would be an “absolute rise of folly” and its high cost and high emissions of unconventional gas could quickly create stranded assets.
The basin – home to one of the world’s last free-flowing desert river systems – spans nearly one-sixth of the Australian continent, covering parts of the Northern Territory, southern Australia, New South Wales and Queensland.
Plenty of untapped unconventional gas reservoirs are falling into the sun, as the Palaszczuk government prepares to make a final decision on whether fracking should be allowed on the Lake Eyre plains.
Within the Lake Eyre Basin, the Cooper Basin is already home to a mature conventional gas industry, and is considered high potential for unconventional gas, prompting some fossil fuel companies to explore the possibility of fracking those reservoirs.
But the economic analysis Pegasus EconomicsAlistair Davey, released Monday, confirmed that the carbon dioxide content of unconventional gas in the Cooper Basin averages about 30%, which puts it in a “clearly competitive position” compared to other gas fields that have a much lower carbon dioxide content than raw gas.
“Any requirement to offset emissions from unconventional gas production from the Cooper Basin in the Lake Eyre Basin would further erode its competitiveness due to the higher CO2 content of the raw gas,” Davey says.
“Rather than posing the risk of turning into stranded assets, commercial production of unconventional gas from the Lake Eyre Basin would be the absolute height of folly if ever it were to start.”
Lock the Gate, which commissioned the independent analysis, said that apart from the social and environmental reasons to protect the fragile floodplains of the Lake Eyre Basin, the report showed it was not commercially viable, making it “economically foolish to sacrifice” the basin to the hydraulic fracturing industry.
Company spokesperson, Ellie Smith, said Origin Energy may have reached similar conclusions when the company announced it was pulling out of the company Gas exploration in the western Queensland canal country. The Queensland government has called for other companies to be prevented from obtaining such permits.
“Now we need the Palaszczuk government to shut down Origin properties and ban fracking in the floodplains so that smaller, less transparent or less experienced companies cannot get in and fail and leave tainted assets stranded for future generations of Queenslanders to clean up,” Smith said.
“This part of far western Queensland supports a sustainable beef industry and thousands of tourists flock here during flood events to witness the remarkable transformation of the landscape.”
Last week Palaszczuk . government They left the energy policy in panic When she announced that Queensland would end its reliance on coal-fired power by 2035 under a 10-year, $62 billion energy plan to create a clean “super grid” of solar, wind and hydropower.
in This is a historical advertisementPrime Minister Anastasia Pallaschuk said a bold vision was needed to tackle the “climate emergency”. It has committed an additional $4 billion to transforming the state’s energy system and said that by 2030 there will be at least 2,000 additional wind turbines and an additional 35 million solar panels in the state.
In January from Queensland Academician Ian Lowe Calculates potential emissions that would be generated if Origin drilling permits in Channel Country opened the Lake Eyre fracking basin and found that it would “burst out of the water” Queensland government emissions targets and make it difficult for Australia to comply with its international obligations.