The Australian Competition and Consumer Commission is yet again warning of imminent gas shortfalls for Australia’s east coast. In response, the federal government has announced another review into whether we need to reform our gas market regulation.

Given the ACCC has been running a gas market inquiry since 2017 and has been saying pretty much the same thing every year since – essentially that gas producers treat Australian consumers like second class citizens – isn’t the answer blindingly obvious?

For the past few years, the gas market has been stuck in Groundhog Day. Each year the gas producers tell us that the only problem is slow government approvals for new developments. Interestingly governments have approved many new gas developments, for example Santos’ Narrabri gas field was approved in 2020 but is yet to proceed.

Yet each year we find ourselves in the predicament of imminent shortfalls. Then the government steps in to “negotiate” (or is it beg?) for the gas producers to pretty please provide some extra gas to domestic consumers at a price that won’t cripple them. In response the gas companies miraculously find some extra gas under the couch and dribble out a little bit more, but not too much that it might noticeably reduce prices.

Some gas producers appear to be engaged in a phenomenon so well known to economists they’ve invented a term for it: “strategic........

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