Estimated read time: 10 minutes
With Victoria's Gas substitution roadmap1 and a stream of news articles reporting on the impact of gas on your pocket, your health and the environment2 3 4, there is increasing pressure for Victorian homes and businesses to get off gas. But is gas really that bad?
The 20 second summary
- Gas has historically been a great option for Australia, both as an energy-dense and widely available fuel source and a profitable export commodity.
- Gas has become increasing unattractive as a go-to energy source due to increased awareness of its environmental and health impacts, the profiteering behaviour of gas companies and the risks that it exposes us to from geopolitical instability.
- Cost effective, environmentally beneficial and plentiful alternatives to gas are now available in Australia.
- There is increasing government and investor sentiment away from fossil fuels, making it likely that having gas piped into your home will become an expensive commitment.
- Gas in and of itself is not bad. But the industry that extracts and sells it and the people who burn it have some bad practises and habits that are exposing us to a huge amount of risk.
Gas, also referred to as 'natural gas', fuels many of our homes, from heating and cooling, to hot water and cooking. Why are we being told to get off gas, given that it is such an integral part of our homes?
In this article, to understand what appears to be a U-turn on gas, we delve into the complexity of Victoria and Australia's relationship to gas. To do this, we begin by looking at the past, to understand where our reliance on gas came from. We then move to the present and the troubling knowledge that is now being shared about gas. We then peer into the future to see where current policy and market dynamics are taking us. Once we have examined the gas industry and politics, we will finish with a look at the health problems associated with gas being in homes.
Our aim is to provide you with a sense of the evolving relationship between Australia and gas, and why some many people (include us) are telling you it is time to get off gas.
The past: good times
Since the first offshore gas well in Bass Strait in 19655, Australia has enjoyed a long and fruitful relationship with gas. On the home front, we can extract large amounts of it from within our borders and, until recently, it has been a cheap and plentiful source of energy.
Gas has functioned as an important and responsive fuel in power generation, adding agility to manage the peaks and troughs of the national grid alongside the lumbering and relatively fixed output of coal-fired power generation.
It has also been a cornerstone of our export income. Gas producers (and by extension through taxation, Australia) have benefitted massively from booming international gas markets.
Currently, there are 23 offshore platforms and installations in Bass Strait6, with plans to expand to onshore within Victoria7. In 2020 Australia, alongside Qatar, were the world leaders in LPG (liquefied petroleum gas) exports8.
So, there is a history of gas being big business for Australia and this goes some way to explaining why it has been pushed in Australian homes.
As of 2020/2021 Victoria still relies heavily on gas, as it provides 20% of our energy.
Source: Australian Government: Department of Climate Change, Energy, the Environment and Water9
However, times are changing and the future is not looking as positive for gas or Australia's gas exploration.
The present: troubled times
Changes are afoot. Some of this is due to new information about the environmental impact of gas, some is about industrial practises and some is the changing economic and geo-political fates of fossil fuels in general.
Strike One: The impact of burning gas
Unfortunately, it seems that the environmental impact of using gas is steadily knocking nails into our own coffin. 90% of natural gas is methane10. Methane is the second-most important greenhouse gas after carbon dioxide and a key driver of climate change.
According to Stanford University,
over the first two decades after its release, methane is more than 80 times more potent than carbon dioxide in terms of warming the climate system10
As more data is released about the critical need to stop burning more fossil fuels of any sort to prevent catastrophic climate change11, the imperative is now is to stop using natural gas.
Strike Two: The Gas Industry
As the focus on climate has increased, so has our awareness about the extent of the emissions from extraction, processing and transport of gas. These are called fugitive emissions because they don’t come directly from burning gas.
Recent studies show that fugitive emissions in Australia have risen 46% since 200512. Even discounting combustion of the end product, the industry itself is a significant contributor to the problem.
This is partially because of the requirements for transporting natural gas. For example; "liquefied natural gas (LNG) is a natural gas that has been cooled to minus 162°C, a process that is commonly done for gas export purposes as it reduces the volume of the transported gas"8. Consider the energy requirements to lower the temperature of gas to minus 162°C!
There is also the challenge of employing increasing more risky methods of extraction in an attempt to reach ever-diminishing fossil fuel resources. The highest profile approach is hydraulic fracturing, or fracking12. Fracking involves forcing massive quantities of sand-bearing water, loaded with chemicals, deep underground. The pressure behind the fluid mix creates new cracks in the rock, which allow the gas to flow more freely to the well. Fracking has proven to contaminate local land and water supplies. While this is banned in Victoria13, fracking can and does operate in other states and territories of Australia.
Alongside existing off-shore gas plants, the gas industry continues to impact Victoria (and Australia) by proposing the expansion of infrastructure13. Currently, in Victoria there are plans to expand the Victorian Gas Program. Including building onshore gas plants across the east coast of Victoria. The below map sourced from the Victorian Government illustrates the proposed areas.
Source: Victoria State Government14
These proposed sites could begin production as early as 2023, after the Victorian government introduced The Petroleum Regulations 2021 policy, which lifted a ban on onshore gas production13. While the government claims "onshore conventional gas industry would not comprise Victoria's environment or our vital agricultural sector"13, it is hard to reconcile this statement with their infographics for the required infrastructure, as shown here:
It appears that the gas industry is under pressure to extract as much gas as it can and to make as much money as it can before the market closes, as the international consensus pushes the move to renewable energy sources and increasingly there are global moves to regulate the gas industry heavily16.
Here, Victoria and Australia appear to be lagging behind, as they invite more gas production despite global trends and clear evidence about the impacts gas has for climate change13. The priorities pursued by the gas industry don't account for environmental damage, through emissions and the building of infrastructure.
Strike Three: The Global Economy
Russia's invasion of Ukraine was a watershed moment for gas. As Europe locked out supply from Russian gas fields, it initiated a global scramble to find replacement supplies17. Owing to a perfect storm of relaxed Australian domestic supply regulations and quotas, producers were able to redirect gas overseas to meet desperate need and generate huge profits18.
The only problem was that gas availability in Australia dropped in conjunction with the breakdown of coal-fired energy supply. In July of 2022, the country entered a market crisis fuelled by gas company profit-seeking, which required the government to step in and impose an unprecedented price cap so retailers and businesses wouldn't go bankrupt19.
Aside from the irony of a domestic energy crisis created by commodities that are abundant in Australia (coal and gas), the episode highlighted a couple of helpful lessons:
- If geopolitical instability increases, reliance on overseas energy sources is a huge source of risk;
- Gas companies will always follow the route of greatest profit (unless mandated by legislation), no matter what the cost to Australian businesses and households.
In summary, it's become clear that gas and the industry that extracts and sells it is more environmentally hazardous than previously understood. The industry and the global market for gas is also a huge source of risk for Australian consumers and businesses and this risk is realistically going to increase over time as fossil fuel scarcity increases.
The future: the times they are a-changin'
While the gas industry has been responsible for a range of escalating concerns and risks, alternatives for energy generation have been emerging.
The cost of renewable power generation has now dropped below that of fossil fuels (even accounting for the significant subsidies that benefit the fossil fuels industry)20.
Australia also has the unique situation of a huge footprint and low population density, a high and consistent level of sunlight exposure and the benefit of coastal proximity for most major cities. It has the highest solar radiation per square metre of any continent, which means it has the potential as the best solar energy resource in the world21!
This opens up major infrastructure opportunities for the development of solar and offshore wind farms, which support the generation of cheap, national energy.
In Victoria, the state government22 is acting on this opportunity by buying back the State Electricity Commission, with the aim to make electricity 100% state owned and renewable.
Add to that the responsivity and efficiency of renewable-based systems alongside storage (like batteries and hydro) and the business and operational cases for gas start to struggle.
World-leading adoption of rooftop solar in Australia has also proven that individuals and businesses can generate power at source, without relying on the losses and emissions from extracting and transporting gas to where it is needed23.
Government long term sentiment is also turning on the gas industry. The recently released Victoria's Gas substitution roadmap1 lays out a clear pathway to a future without gas, which is going to make it hard for industries, businesses and individuals who aren't ready or willing to make the transition.
We do recognise the apparent policy contradiction in terms of the building of new onshore gas exploration infrastructure and Victoria's gas substitution roadmap. This speaks to a tension for the government between managing a short term energy crisis and establishing medium to long-term aspirations to reduce emissions.
The benefits of gas are diminishing. Gas and the industry that supplies it are now more expensive and greater sources of risk in an increasing time of geopolitical stability than the alternatives. They are also unavoidably active contributors to a global climate crisis.
Gas and our health
In the final section of this article, we move closer to (your) home. Is gas bad for your health?
Recently, it has come to light that gas emissions in the home are bad for our health. This is because natural gas contains 21 hazardous pollutants24 that can negatively impact our respiratory system.
"Nitrogen dioxide exposures in homes have been associated with more severe asthma and increased use of rescue inhalers in children. This gas can also affect asthmatic adults, and it contributes to both the development and exacerbation of chronic obstructive pulmonary disease"2
A recent study measured the emissions from natural gas stoves, cooktops and ovens in residential homes and found that there is a constant release of methane, even when the cook top is off25. This is particularly concerning for small kitchens or houses with little ventilation. The study also showed that benzene is being leaked, which is a cancer-causing agent.
Emissions and their impact on our health are not reduced to just the kitchen. Gas water heaters leak and they are having a significant impact on methane emissions28. While all gas water heaters leak, instantaneous water heaters, or tankless, have twice the methane emissions of storage or tank water heaters. While the release of gas is not as severe to health as in the kitchen, due to the gas being dispersed into the air, there is still an impact, not only on the air around the system but climate change.
Natural gas is therefore bad for our health, but to what level will depend on the size of your kitchen and the level of ventilation, and the location of your hot water. It is also dependent on the presence of gas leaks.
While gas leaks are often identified by homeowners through the smell of gas, minor leaks are often not identified because people will not necessarily smell the gas26. Alongside the above respiratory health impacts, minor leaks of gas can also cause27:
- Dizziness
- Feeling sick or nauseated
- Headaches
- Fatigue or drowsiness
- Irritation to eyes, throat or skin
- Humans and pets getting sick at the same time
- Chest pains
- Loss of consciousness
Without regular checks of gas lines, it is hard to know what is going on in your house.
Conclusion
It is time to come back to the original question; is gas bad? The answer, if we really think about it, is no, as long as we leave it in the ground.
This leads us to a sobering conclusion - gas only becomes a problem when we extract it from the ground, move it around and burn it.
The bad news? Many of us are currently dependent on the extraction, distribution and burning of gas. The good news? There are immediate alternatives available for us that are less risky and damaging for the economy, the environment and our health. The pathway to those alternatives? Energy Freedom.
Next steps
Interested in getting off gas and w
ant to fast-track home electrification? Join an Energy Freedom Homes Masterclass and learn to identify your needs, gain expert installation advice, and meet trustworthy tradespeople. Check your Masterclass readiness now!References
1 Victorian Government. (2022). Victoria's gas substitution roadmap. Retrieved 2022, from https://www.energy.vic.gov.au/renewable-energy/victorias-gas-substitution-roadmap
2 Levy, J. (2022). Is your gas stove bad for your health? The Conversation. https://theconversation.com/is-your-gas-stove-bad-for-your-health-186454
3 Mercer, D. (2022). Coal and gas price caps and whether they'll lower your energy bills explained. ABC News. https://www.abc.net.au/news/2022-12-10/government-energy-price-caps-coal-gas-power-bill-explainer/101755970
4 Morton, A. (2022). Emissions from Australia's oil and gas industry rose 20% in the first five years of safeguard mechanism. The Guardian. Retrieved 2022, from https://www.theguardian.com/australia-news/2022/sep/20/emissions-from-australias-oil-and-gas-industry-rose-20-in-first-five-years-of-safeguard-mechanism
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12 Climate Council. (2020). Why is gas bad for climate change and energy prices? Retrieved 2022, from https://www.climatecouncil.org.au/resources/why-is-gas-bad-for-climate-change-and-energy-prices/#:~:text=Fugitive%20emissions%20in%20Australia%20have,atmosphere%20and%20warms%20the%20climate.
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16 Newburger, E. (2022). Biden interior rule would limit methane leaks, gas flaring from public lands drilling. CNBC. Retrieved 2022, from https://www.cnbc.com/2022/11/29/biden-rule-to-limit-methane-leaks-flaring-from-public-lands-drilling.html
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25 Lebel, E. D., Finnegan, C. J., Ouyang, Z., & Jackson, R. B. (2022). Methane and NOx emissions from natural gas stoves, cooktops, and ovens in residential homes. Environmental Science & Technology, 56(4), 2529-2539. https://doi.org/10.1021/acs.est.1c04707
26 Thompson, D. (2022). Gas used in homes has links to cancer; leaks often undetected. U.S. News. Retrieved 2022, from https://www.usnews.com/news/health-news/articles/2022-07-01/gas-used-in-homes-has-links-to-cancer-leaks-often-undetected