t\u2019s hard to imagine a place like Victoria\u2014rich in natural resources\u2014running out of gas. But that\u2019s exactly what\u2019s happening. While the state produces more gas than it uses, it\u2019s still facing a looming shortfall. How does that work?<\/p>\n\n\n\n
Victoria has long been one of the biggest gas users in Australia, accounting for more than half of the country\u2019s residential gas consumption. But here\u2019s the catch: its gas production has been more than enough to meet that demand. In fact, for decades, the state has been producing plenty of gas to cover its own needs\u2014and even exporting some to other states.<\/p>\n\n\n\n
However, recent reports indicate that by 2029, this comfortable situation could change. Why? Because the state\u2019s main gas source, the Bass Strait, is running dry. The supply from this area is expected to decline by nearly 40% over the next few years, creating a gap in the state\u2019s energy security, explains ABC<\/a>.<\/p>\n\n\n\n So, what\u2019s being done about this? Well, gas extraction companies are scrambling to find new reserves, and the state government has given the green light for exploration in the Otway Basin, located off the south-west coast. ConocoPhillips recently announced the discovery of gas deposits in this area\u2014though it\u2019s still too early to tell if they\u2019ll be commercially viable.<\/p>\n\n\n\n And while the discovery is promising, experts are quick to note that we\u2019re not out of the woods just yet. More work needs to be done, and it could take years to see if these new reserves can fill the gap left by the declining Bass Strait fields.<\/p>\n\n\n\n But even if new gas is found, there\u2019s still a problem. Despite producing more gas than it needs, Victoria is part of a national and international market. The gas<\/a> produced here isn\u2019t necessarily kept in the state. It\u2019s part of a national pool, some of which is exported overseas to meet the growing demand from countries that pay a lot more for it than local consumers.<\/p>\n\n\n\n As a result, while gas prices have been rising in Victoria for years, the situation isn\u2019t likely to improve without a policy shift to reserve more gas for domestic use. Without it, the cost of living could rise even higher for Victorians who are already struggling with skyrocketing utility bills.<\/p>\n\n\n\nThe Push for New Gas Reserves<\/h2>\n\n\n\n
Why the Shortfall Matters<\/h2>\n\n\n\n