This week, outgoing Senex Energy chief executive Ian Davies made headlines when he warned within a few short years, Australia won’t have enough gas to meet our demand, due largely to government inaction and intervention.

This is both true and not true. Australia-wide, there is no shortage of gas. We’re the world’s second largest exporter of liquefied natural gas (LNG), after all. Critics see the purported supply crisis as a move by the industry to open up new gas fields.

But in gas-dependent Victoria, the risk of shortages is very real. That’s because the state’s offshore gas wells are running out, and governments and industry haven’t acted to boost supplies until renewables can cover the gap.

Since 2010, production from offshore gas wells in Victoria has fallen by 70% and there’s not been enough new gas to replace it. The state government has banned fracking. And while New South Wales will soon have a gas import terminal (Australia’s first), Victoria knocked back a similar proposal on environmental grounds three years ago, and another, proposed for Geelong, is yet to secure environmental approval.

Victorian leaders will be relieved winter is ending and the gas heaters will be turned off. But the problem will not go away without concerted action.

Australia’s energy market operator has issued increasingly direct calls for more investment........

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