Australia’s Gas Giveaway: How Did We Let This Happen?

Sometimes I sit back and think: How did we allow this to happen?

Australia is one of the world’s largest exporters of gas. That gas belongs to us — the people. It’s a public asset. And yet, we barely see a return.

Here’s the kicker: companies like Chevron have exported billions of dollars’ worth of gas from mega-projects like Gorgon and Wheatstone — and those projects haven’t paid a cent in royalties. Why? Because they’re located in offshore Commonwealth waters, where no royalties apply. Instead, they fall under a separate system called the Petroleum Resource Rent Tax (PRRT) — a profits-based tax that only kicks in after a project has recovered all its costs (plus generous uplift rates).

The result? No PRRT payments have been made yet, despite exports beginning back in 2016. Chevron says PRRT payments may finally begin in 2025.

Yes, the company does pay some royalties — but only on legacy assets like Barrow Island oil and its 1/6 interest in the North West Shelf venture. Not on the multibillion-dollar LNG exports that dominate the gas economy.

Meanwhile, Australians:

• Pay high income taxes.
• Face rising cost-of-living pressures.
• Get no dividend, no public wealth fund, no meaningful return on our natural resources

And what’s worse — this system was put in place back in 1988, and no government — Labor or Liberal — has had the courage to fix it.

Why? I suspect it’s got something to do with the lobbying power of oil and gas giants, and the donations that seem to follow. Every time reform is suggested, we hear scare campaigns about job losses and investment flight — but other countries manage just fine. Qatar taxes its gas and earns tens of billions. Norway built a $1.6 trillion sovereign wealth fund. Alaska gives money back to its people.

We’re told there’s no money. But maybe we’re just not collecting it from the right places.

It’s time to stop being afraid of the lobbyists and start acting in the public interest. This is our gas. Our wealth. Our future.

Leave a 👍, a comment, or just follow along — I’m keen to explore these questions together.

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The views expressed in this post are my personal opinions and are intended to encourage open and constructive discussion. The content is based on publicly available information and reflects my interpretation and perspective at the time of writing.

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