Soaring Gas Prices in Australia Leads to Uncertainty About the Proceedings of the Global Energy Giants

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Gas prices continue to rise in Australia, affecting global energy giants. It is still being determined whether or not these companies will continue to be able to get their way, especially as prices are expected to increase.

The rise in prices has put immense pressure on global energy giants, who were able to get their way before the increase. How these companies will respond to higher prices is still being determined. Some have already attempted to pass the increased costs onto customers, while others have been more hesitant due to concerns about customer sentiment. 

The cries of sovereign risk have again rung through the halls of power and the media as global energy giants struggle to cope with increasing gas prices in Australia.

Santos chief executive Kevin Gallagher wrote, “Australia relies on foreign investment, but the sovereign risk is rising fast.”

“In a low-risk country, governments recognise that contracts between commercial parties must be honoured and not broken by governments favouring one party over another.”

The Australian Competition and Consumer Commission (ACCC) has stated that “gas price increases are expected to remain high for some time.” This is due to record low gas production levels in Australia, a lack of competition among suppliers, and restrictions on export quantities.

The ACCC has recommended that the government intervene to increase competition and ensure affordable gas prices. The Australian Energy Market Operator (AEMO) has also proposed several measures to improve the security of energy supply and reduce expenses, including increasing exports and introducing a domestic reservation policy for natural gas.

It remains to be seen whether global energy giants will continue to get their way in light of rising gas prices in Australia. This is because they must compromise with customers and regulators to stay afloat. In any case, change is necessary for Australians to pay fair and reasonable rates for their energy. 

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