Despite solar and wind energy advances, fossil fuels will remain necessary to lift people in economically developing nations out of poverty, an Australian government official maintained on Mar. 9.
“I hope economic growth continues, particularly in my part of the world. But it’s not likely without continued use of fossil fuels,” said Matthew Canavan, Federal Minister for Resources and Northern Australia, at the Center for Strategic & International Studies.
The more that producing countries limit their ability to produce their resources, the more developing nations could turn to more polluting fuels, Canavan said. “While my environmental friends might like to see everyone drive electric cars, they’re not about to give up their smart phones,” Canavan said. “If we succumb to these fairy tales we tell each other, developing countries won’t have the opportunities we had.”
Saying the world is lucky to still have abundant natural gas and coal supplies, he disputed any notion that demand for fossil fuels is declining. “In the longer term, it continues to grow—very strongly. The proven method to improve the environment is to deliver economic growth. That’s what Australia wants to do in our part of the world,” Canavan said.
He expressed strong support for free and open markets. “It’s important to remember that Australia’s energy exports didn’t develop because a few mining companies thought it would be a good idea,” Canavan said. “Japanese investors came into our country ready to provide the necessary financing because it would be in their country’s interest.”
Asked if Australia’s gas producers are being pressed to make more available domestically in response to rising prices, Canavan said contractual obligations to overseas customers as conventional production from Bass Strait fields has caused a problem. “It becomes hard when you’re asking your citizens to pay high prices when your country has some of the world’s biggest supplies. This will need to be addressed,” he said.
Contact Nick Snow at [email protected].
