Australia on the Rise As A Major Energy Supplier

Fire of Liberty
As I was looking through the Financial Times, I came across this article which noted that the government of Australia is stepping up its efforts in becoming a new supplier of energy needs. Here's how Australian Prime Minister John Howard summed up this new front with regards to various sources of energy:

"“Australia can, and should, supply the domestic and world economies with low-cost energy,"” the prime minister told a high profile business gathering in Sydney. "“Making the most of a comparative advantage in energy is not just in the national interest. It raises global economic welfare as well."

Global interest in Australia's vast coal, gas and uranium reserves has risen sharply both because of the surge in demand for energy from China and India and, more recently, because of the deteriorating situation in the Middle East and record oil prices.

"“As an efficient, reliable supplier, Australia has a massive opportunity to increase its share of global energy trade. With the right policies, we have the makings of an energy superpower,"” said Mr Howard, a down-to-earth politician who rarely makes bold geo-political statements.

As recently as five years ago, Australia was dismissed as an "“old economy" and its currency fell to an all-time low against the US dollar because of its perceived outdated dependence on commodities.

The country is the world'’s largest exporter of coal, accounting for about 30 per cent of world trade in the commodity, has almost 40 per cent of low-cost uranium reserves and is on course to become the second biggest exporter of liquefied natural gas by 2015.

"“We are one of only a few net energy exporters in the developed world and our relative proximity to rapidly growing energy markets in Asia is an obvious asset,"” Mr Howard added.

From the looks of what PM Howard has noted about the massive quantities of coal, uranium, and LNG, I'd say that a lot of the world and possibly the US will have a friendlier and safer source of energy to go to instead of having to venture into volatile regions like the Middle East, Africa and nations like Venezuela. Along with finding a safer port, this opening up of Australia's massive energy supplies for sale also creates yet another entity in the global energy markets that not only introduces greater competition but possibly lower prices. All in all this new energy policy being proposed by John Howard will not only provide a major boost to Australia's financial well- being but also big strategic anchor with regards to the Asia/Pacific region. So hats off to our good friends "down under".