JoNova

By Jo Nova

If the whole renewables fantasy was crumbling, it would look something like this

Despite the Labor Government throwing money at unreliable energy, renewables hopes are quietly unraveling. The largest energy retailer in the country just announced a nice 26% profit jump, based on fossil fueled gas, and they also announced they’d be keeping Australia’s largest coal plant open longer. The two year extension for Eraring, is now a four year extension. Despite reaping in gas profits and keeping the planet-destroying-plant operating, the share price promptly leapt 6% to a ten year high.

Significantly, Giles Parkinson at Reneweconomy also noticed that Origin’s annual report includes talk of batteries, but no wind or solar projects, which seems like an important oversight in a nation belting headlong towards the Green Utopia.

Meanwhile, for the first time I can recall, a fossil fuel CEO is daring to defend the industry. The shift in confidence in palpable.  Mike Wirth, the Chevron CEO, is not only saying “oil is not evil” but he clearly isn’t afraid of the Australian government. He’s so unafraid he also delivered a “stinging rebuke” — saying that high costs, red tape and environmental rules have made Australia so uncompetitive, investors are leaving to spend their money in the US and the middle east instead. Indeed, Chevron had a plan to double their Australian gas production but have abandoned that now. Australia used to be the world’s largest LNG exporter, but Qatar and the US outpaced us.

In a similar theme, Ampol just surprised the market by spending $1 billion dollars to double the number of petrol stations it owns, making it the largest retailer in the country. The CEO Matt Halliday said the unthinkable: “The transition [to EVs] will take decades, and combustion engines are going to still make up a large chunk of the national car fleet beyond 2050.” It was a very unfashionable and backward thing to say, but shares leapt 8% on the news yesterday.

Australia’s biggest energy retailer

hits go slow button on wind and solar, mulling options on Eraring

Giles Parkinson, Reneweconomy

Origin Energy, Australia’s biggest energy retailer, appears to have hit the go-slow button on the rollout of new renewable energy projects, and is still mulling options on the already extended Eraring coal generator, the country’s biggest, which is officially due to close in 2027.

Curiously, in its annual report, the company says: “With the Eraring Power Station’s closure planned for August 2027, failure to deliver our major renewable generation projects may affect Origin’s future supply capacity, financial prospects and reputation.” Yet it has made no commitment to build those projects in that timeframe.

Think of the irony of putting the nations biggest battery next to the nations biggest coal plant, as if it needed back up:

But this is made up entirely of big batteries, including the giant 700 MW, 2,800 MWh Eraring battery being next to the coal generator…

It [the annual report] includes no wind or solar projects. The technologies did not even rate a mention in the results presentation, apart from the giant 1.45 gigawatt (GW) Yanco Delta wind project in the south-west of NSW, which has gained grid access rights but is still to complete environmental approvals.

Chevron’s CEO says “Oil is not evil”:

Chevron boss Mike Wirth leads the fossil fuel fightback

By Perry Williams, The Australian

Mike Wirth has a message for the fossil fuel haters: oil is not evil.

The boss of Chevron, one of the world’s largest producers, has a front-row seat to the energy revival that’s gathered pace under the Trump administration. After a 43-year career in the oil and gas industry, he sees part of his role as helping deliver some home truths on the reality of the energy transition.

“Some criticise fuels as somehow being evil or immoral or any number of different characterisations that you can find out there … to attack our industry,” Mr Wirth tells The Australian. “When, in fact, people in the world have the highest standard of living in human history today because they are not toiling all day long to feed themselves and feed their families and create heat when it’s cold or try to stay cool when it’s warm. I strongly disagree with characterisations that our products are only bad.”

Finally, the international oil giant delivers the hard truths, without pandering. Clearly the power in the room has shifted, and with Trump in the US, doors are opening, and Australia is not so relevant:

Chevron delivers gas warning to Labor with Australian investment souring

Global energy giant Chevron has delivered a stinging rebuke directly to Deputy Prime Minister Richard Marles over Australia’s slump as an investment destination under Labor, warning that high costs, onerous taxes and ­environmental delays meant a historic plan to double its $US80bn ($123bn) Australian LNG business was off the table.

Chevron’s Texas-based chief executive, Mike Wirth, delivered the blunt message to Mr Marles on Friday afternoon in Geelong at a private meeting between the pair, saying he was concerned Australia was now uncompetitive with gas rivals such as the US and Middle East.

Mr Wirth revealed Chevron had at one point considered ­doubling its LNG footprint in WA to 10 processing trains from the current five units that exported gas from its Gorgon and Wheatstone plants. However, that expansion had now been shelved.

Australia’s $100bn LNG industry made it the world’s largest exporter for the past decade…

Meanwhile Ampol bets big on Australians driving petrol cars for years to come.

Ampol makes $1bn bet on the future of combustion engines over EVs

Ampol’s stunning $1.1bn move to almost double the footprint of its petrol stations is not only about expansion. It’s a calculated bet on the future of internal combustion engines versus electric vehicles. The retailer and refiner has snapped up a portfolio of around 500 EG-branded petrol stations, consolidating its position as the country’s biggest fuel retailer.

But [Ampol’s CEO, Matt Halliday] is also a realist. The transition will take decades, and combustion engines are going to still make up a large chunk of the national car fleet beyond 2050. Despite also using its own debt to fund the deal, Ampol investors have firmly backed the expansion, sending shares nearly 8 per cent higher on Friday.

Make no mistake, this is the Trump effect — as Perry Williams at the Australian reports, the Chevron CEO speaks with the President regularly and says:

“I find the President to be curious. He asks questions. He asks good questions. He likes to talk to people in business. Under the prior administration, the door was not open. I only met President Biden once, and it was for a photo op,” Mr Wirth says.

“…he’s a big believer in American energy, and he believes that American energy strength can underpin economic strength and national security.”

With the American energy juggernaut taking off, Australia will be dragged by its green chains…

Photo: LNG Carrier http://photozou.jp/photo/show/254715/24141912.|  Photo Ampol: Marcnutt1996 |

Photo: Trump: Gage Skidmore from Peoria, AZ, United States of America