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Floating LNG to be “saviour” of Aust industry: Shell

Petroleum giant Shell has rejected Premier Colin Barnett’s criticism of floating LNG projects, saying the revolutionary technology is the likely saviour of the industry in Australia as rising costs make traditional gas projects uncompetitive.

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Comments

Fremantle
I concur largely with Ms Pickard, she is correct in saying the technology is not more dangerous than onshore, in both instances the wells ( the source of the oil/gas- and hence pollution risk) are located offshore, indeed not requiring connecting pipelines there is a strong argument that offshore is safer. Mr Barnett is driven by State royalties, if developed offshore the taxes etc go to the federal government, onshore to the state. I do disagree with Ms Pickard in her claim of lower productivity amongst the workforce. It may be true that the output per worker costs more as compared to East Africa, but the safety regime, not just the environmental side, but the job procedures, the immense paperwork workload that is enforced by the companies does take time. If you measure production against industry deaths, Australia has very favourable percentages. Additionally although Australia is a higher initial cost the political stability will ensure the continuation and expansion of the sector. Dave Hume BSc ((Health & Safety) Lecturer Marine Engineering. 10 Paget Street Hilton 6163 West Australia.

Perth
Given the massive waste evident during just the civil works on land based gas projects I am not suprised at all. It has been a long time coming as far as I am concerned and I have only had an observers experience. My understanding is that this waste is driven by over regulation in the safety sector in areas that do not require it. Given the emotional concern there is no brake on the zelots and the new ways to try to remove even the slightest risk keep growing at a seemingly exponential rate. It is a smoke screen to say that wages are too high when the biggest saving is in labour utilisation. There is just so much lost productivity that one of the biggest issues is labour morale due to inactivity and waste. This is despite the attractive wages. Despite my limited understanding, I would estimate that 20% efficiency in labour on some sites would be optimistic whereas poorly run metro works would pesimistically be running at 65%. Based on this and a wage factor of say 2.5 you can guess that these works are costing in wages 8 times the equivalent works in the metro area and thats before FIFO costs. It is no wonder that these projects are looking to cheaper ways to avoid ground based projects. There goes the wonderful incentive to develop these projects and I would hope the royalty costs will esculate accordingly as the advantages of these projects to Australians decrease.

Perth WA
This lady is not all there. So what she is proposing that we just hand over our resources they come in take it pay a bit of tax and leave. What would it be in it for us? No construction jobs no fabrication jobs no operation jobs only environmental risk. I say we look at how Norway is doing business and learn from them.

Perth
This interview is stating the obvious, Australian competitiveness is decreasing and it has never been lower. One of the big reasons for these competitive decreasing is that the politicians and the arms of government that they control are either wilfully or negligently forcing higher labour costs onto all Australian business, particularly in Western Australia. Heavy regulation or better to say over regulation of anything where our government can make money without really creating something new is a paramount for business etiquette. Policy decision makers are diminishing our economic opportunities with lower minerals industry growth quickly translating into poorer economic performance. The main focus of our politicians is how mining wealth should be shared instead of looking on how the industry could become more competitive. Professions like traffic controllers and trades assistants are earning enormous figures, small new ventures are decreasing and costs are escalating. Western Australia is by far the most expensive state to work and live, but for how long?

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