Old and new energies will be the next driver of the Western Australian economy as iron ore declines into one of the traditional decades of recession and is constantly chasing capital-intensive project expansion.
Oil prices have recovered to US $ 80 a barrel and demand for liquefied natural gas has skyrocketed, ensuring that the final investment decision is underway. Woodside PetroleumThe Scarbara project is the same as threatening iron ore to fall below $ 100 a ton.
Other gas projects, including projects in the reborn Perth Basin, ensure abundant local gas availability.
But as the old world of fossil fuels acquires a new life lease, the new world of battery metals, led by lithium and nickel, will enter an important expansion phase.
Whether it’s lucky or planned, the point about energy is that WA has it, and the world wants it, whether it’s old or new.
China’s energy crisis, primarily caused by a failed central program, is global as the government recognizes the problem of moving too quickly from fossil fuels in the hope that renewables will fill the gap. Here’s a case study of what’s starting to happen.
Attempts to move from one major source to another are not working. Industries and households have found that fossil fuels may not be politically correct, but even with the debate on climate change, they cannot live without fossil fuels. The problem of living with them.
An increasingly expensive problem caused by trying to outsource oil and gas to Simbin, which is reserved for polluters, is that viable alternatives are not yet available. That’s why China is scrutinizing the world for coal, oil and LNG.
Renewable energy sources (wind, solar, hydrogen, etc.) grow as well as battery storage to make up for lack of reliability, but due to the flexibility and abundance of fossil fuels, renewables are still The reality is that it is not a viable alternative.
Last month’s remarkable demand from China’s deputy prime minister, Han Zheng, was that energy supplies had to be secured “whatever the cost”, especially in Europe, which was the farthest on the path to renewable energy. It shows where the rest of the world is heading. Just to find out that it cannot provide enough power to the industry.
The next major energy test will take place at the UN-sponsored COP26 Climate Change Conference in Glasgow at the end of October, where fossil fuels will be condemned as expected and renewables will be praised as expected.
Unfortunately, in reality, the politically correct view of driving fossil fuels out of the market ensures that renewables capture China until it proves to be a reliable and cost-effective successor. With more energy emergencies, it will be very difficult in the short term. ..
Meanwhile, WA trades with other parts of the world, Smörgåsboard, an energy source (including uranium), and the metals needed for energy storage.
Not so good news in Perth’s real estate market, where the housing boom is showing signs of peaking. The next important move is more likely to fall than rise.
The recession shouldn’t happen overnight and there should be a period of stagnation, but there is multiple pressure on the real estate sector.
The end of the era of ultra-cheap money is the most obvious negative factor on the real estate horizon, but stricter lending standards are promised as government regulators pay attention to the quality of bank loans and the ability of borrowers. I am. Meet their repayment.
Bank balance sheet stress tests by organizations such as the Australian Health Regulatory Authority are beginning to reveal signs of an old problem that banks are too generous in lending and borrowers are talking to Fib about their income.
Strict lending rules are the first to narrow down the market, reducing the amount banks can lend to mortgages and squeezing poor customers out of the market. However, the near certainty of stricter loan eligibility rules is only one of the issues that caps residential real estate prices.
Other downward pressures on prices include:
• Rising interest rates. This will boost your monthly mortgage costs.
• Rising oil prices. This affects households as well as increasing mortgage repayments.
• China’s economic slowdown. This could spread around the world and hurt demand for commodities such as iron ore and copper, but there is probably no demand for energy materials that are already in short supply.
WA energy source Smörgås board
https://www.businessnews.com.au/article/WA-s-smorgasbord-of-energy-sources WA energy source Smörgås board