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Our oceans are out of balance – can we learn some tips from feng shui?
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Feng shui is the ancient Chinese philosophy of rearranging built structures in the environment to generate qi or “energy”. But it may have increasing relevance for when, where and how we build into our oceans.
This month 1,500 delegates from 80 countries gathered in Montpellier, on France’s Mediterranean coast, for EcoSummit 2016, to devise sustainable solutions on how to cross the boundaries of ecology and engineering. At the heart of these discussions was marine spatial planning, an important element in the harmony and balance, or feng shui, required in our oceans.
Fragmented seascapesGlobally, we have a long history of building into the sea, dating back to the first Roman seawalls and breakwalls. Down the road from the conference centre, the coastline is armoured with stone laid down in the 17th century during the reign of King Louis XIV.
Japan has been adding artificial reefs to enhance fish production since the 18th century. This practice continues today, ranging from opportunistic sinking of ships to specially constructed installations.
Modern construction has overcrowded our oceans with energy platforms, the most densely constructed of which are often located in the smallest water bodies. The result is a fragmented seascape that creates barriers to important ecological migrations and processes.
The pace of this marine development is rapid and global, but remains fairly unregulated in time and space. Imagine how you would feel in a house where all the furniture was placed in one room, or where the doors to your dining room were nailed shut?
This is occurring in our oceans, where developments may be concentrated in just one area and hard structures block or modify natural water movements. Like our houses, we need to “feng shui” our oceans to achieve a state of equilibrium between societal needs and the environment.
The future of our oceans isn’t set in concrete, but can be a balance between hard and soft engineering – as we heard from speakers from around the world.
Balancing yin and yangOur oceans are becoming crowded. Marine spatial planning is the feng shui that can balance the needs of different ocean users – energy and aquaculture, for instance. But we need to make sure that the resources we receive from our oceans are matched by the efforts we invest in conservation and restoration.
Often the need to defend valuable commercial property from ocean forces overrides the ecological considerations, unbalancing the ocean’s yin and yang.
Some of the best examples of marine spatial planning for ecology are the networks of marine protected areas in many countries.
However, where conservation is not considered, developments remain relatively randomly spaced without thought for important principles of ecological connectivity. Marine feng shui is best supported by continuity and connectedness, principles that are crucial if our oceans are to continue delivering ecosystem services that we rely on, such as food provision.
Spatial planning relies on mapping to identify where and how the ocean is used in relation to natural resources and habitat. We now have the tools to do this at the large scale relevant to ecological processes.
At the most basic level, Google Earth provides a high-resolution picture of the built environment that can be translated for management. At a more advanced level, global observation platforms can generate information about the earth’s ecosystems with unparalleled detail. With these tools literally raining down information from above, we are now best placed to make important decisions to conserve the integrity of our oceans.
Offsetting our ocean footprintWe can look to principles already used in landscape ecology. In many parts of Asia, ecology is combining with the practical considerations for human habitation to create “healthy buildings” with natural temperature regulation, lighting and noise control. In fact, even strategies such as the Building with Nature program appear to have roots in feng shui.
With better planning and forethought about when, where and how we build into the ocean we can have more positive ecological outcomes. Encouraging multi-purpose developments, such as those increasingly used in aquaculture for economic benefits, could benefit ecosystems by constraining environmental impacts.
We can retrospectively feng shui built habitats with targeted conservation of threatened species, but also avoid building new structures in locations where they might impact on migrating birds, turtles or sea mammals. The spatial arrangement of structures might also be used to future-proof warming oceans and provide corridors of movement for ecological climate migrants.
Achieving all the necessary elements for good feng shui in our oceans will be difficult without investment in spatial planning and sustainable developments. Despite the global interconnectedness of our seascapes, their management is largely uncoordinated across territories and economic responsibilities remain uncertain.
What is clear is that our oceans are becoming a jigsaw of human-made structures, but with ecological forethought we have the potential to fit these pieces together for the greatest benefits.
![The Conversation](https://counter.theconversation.edu.au/content/64975/count.gif)
Katherine Dafforn receives funding from the Australian Research Council. She is affiliated with the Sydney Institute of Marine Science.
Mariana Mayer-Pinto is affiliated with the Sydney Institute for Marine Science
Nathan Waltham is affiliated with TropWATER (Centre for Tropical Water & Aquatic Ecosystem Research), James Cook University Australia. Dr Waltham receives funding from: Australian Government, Queensland Government, Industry, Natural Resources Management Groups, Local Government and external funding grant bodies.
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We really must talk about gas
The European Commission’s latest Quarterly report on electricity markets makes sobering reading down under.
Over the last year wholesale electricity prices have been falling just about everywhere across the developed world except here in Australia, where they are skyrocketing.
Figure 32 from European Commission’s Quarterly report on electricity markets analysing wholesale market price trends to the end of Q1 2016, in Euros per megawatt hour. The Platts PEP is the Pan European Power price index. Note that as recently as early 2015, Australia had the cheapest prices, now it is heading rapidly towards the most expensive.
European Commission Quarterly report on electricity markets, see https://ec.europa.eu/energy/sites/ener/files/documents/quarterly_report_on_european_electricity_markets_q4_2015-q1_2016.pdf
Australian prices are now above European prices, well above the US prices and rapidly converging with Japan, which is still recovering from the shock of Fukushima in 2011 when prices rose to over eight times Australian.
With Japan now reactivating nuclear power production, and Australian LNG exporters putting the squeeze on domestic gas markets, it can be anticipated that Australia will soon be top of the price tree. Indeed, with 2016 Q2 and Q3 Australian prices rising at unprecedented rates, it probably already is.
Combined with exorbitant power distribution costs, the alarming trends highlighted by the EC’s report will be exercising the mind of our new Federal Minister for the Environment and Energy, Josh Frydenberg.
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The trends highlighted by the EC’s report are expressed in Euros, so they somewhat obscure local dynamics. In reality, Australian wholesale prices are rising more steeply than ever before, having risen by around 45% over the last year. Prices over the last six months are now higher in aggregate than at any comparable time during the carbon tax period, which added around 50% to wholesale prices in the period 1/07/2012 - 17/07/2014. When the impact of the carbon tax on 2014 prices is removed, prices are up by more than 65% in just 2 years.
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Compared to the same period one year earlier, wholesale prices have risen across all seasons and all jurisdictions in the last year, excepting summer in Queensland. The rate of increase has risen steadily from the spring 2015 through to the winter 2016. For the winter period of 2016, prices were up by an average by 85% compared to the previous winter, with the increase ranging from 65% in Queensland to 115% in South Australia.
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The reasons for wholesale electricity price falls in Europe and Japan are straightforward.
Both are dependant on imported gas, and with the oil-linked price for gas falling, so too are electricity prices. In the US market, the flood of shale gas greatly exceeds export capacity, so there is a continuing glut of cheap gas [1].
The story in Australia is quite different. Despite a three fold increase in gas production in the last few years, due to the opening up of new coal seam gas (CSG) fields in Queensland, the Australian domestic market is being squeezed as LNG exporters struggle to meet supply contracts.
In the Australian CSG industry it is an open secret that some exporters agreed punitive clauses in contracts should they fail to fill their LNG trains. Despite strong opposition from former industry champions such as John Ellice-Flint, exporters such as Santos stretched themselves on production by committing to two LNG trains. Now gas is being diverted from domestic markets to avoid industry collapse. The consequence is that Australian gas consumers are increasingly subject to scarcity pricing when domestic prices can rise to many times that which international buyers have contracted for the same gas.
Not surprisingly, steep rises in the cost of gas is causing a reduction in gas use in domestic electricity markets. In Queensland gas fired power output in winter of 2016 was down about 250 megawatts, over 20% on the year before. Meanwhile black coal generation was up 450 megawatts, with Queensland’s CO2-production from the electricity sector increasing by 5%.
An illustration of the impact of the rising cost of gas on the Australian electricity market are summarised in the figures below, which show how market prices varied with gas dispatch in Queensland over the winters of 2015 and 2016, respectively. In winter 2015, when gas dispatch averaged 1076 megawatts, there was no correlation between wholesale prices with the amount of gas dispatch, consistent with gas generation being a price taker. Then the average price of electricity was $39.6 per megawatt hour.
By winter 2016, when gas dispatch averaged 833 megawatts, a strong price correlation had established as gas generators increasingly set the price. Average prices had risen to $65.2 per megawatt hour with spot prices increasing on almost $100 per megawatt hour for each additional gigawatt of gas dispatch in winter 2016.
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In 2015, the availability of “ramp” gas made Queensland settings somewhat analogous to the US, where cheap gas increasingly fuels electricity generation. By winter 2016 when more LNG export trains had been commissioned, scarcity pricing was manifesting in our domestic gas markets impacting our electricity market, big time.
As the EC’s quarterly market report flags, this is a terrible outcome for Australia, obliterating our competitive advantage as a cheap provider of electricity in a little over a year. And it is hurting like hell, most severely in South Australia which has always been more exposed to gas prices than other states by virtue of its limited coal reserves.
While several compounding factors have played out in extreme price rises in South Australia, as discussed in my last post, the broader rises across Australia have their underpinnings in the rising gas prices as well as contractual arrangements in the gas market, including piping. The smoking gun is the steep rises in Queensland - a market that to this day remains essentially a renewable free zone.
The damaging reality of the situation is highlighted by a recent post on the tech website Whirlpool
- “We are a business in SA [South Australia] with high usage (use up to 14MW), on spot pricing since June 1st – and are turning everything off when a spike hits – but the last 5 minute spike was at the end of the half hour pricing cycle (price is averaged in half hour periods). We just chewed through $75,000 worth of power in a half and hour! (we are used to paying $1000). This period while the interconnector is down could effectively burn about 3 years of profits in 4 working days if the forecast prices come to fruition.”
One might ask why such energy users exposed themselves to spot (wholesale) pricing (the norm is via the contract market). Whatever, the cautionary is that 14 MW represents 1% of average South Australian power consumption. Ten such business at threat of going under would be devastating, with potential to reduce South Australian electricity demand by 10%.
The horse has bolted, so what next?The EC’s quarterly market report was already flagging in Q1 2016 that Australian electricity production was expensive by international standards. Since then, further steep price rises across the NEM in autumn and winter 2016 have further exacerbated price differentials, surely now placing Australia amongst the most expensive producers of electricity in the world.
No doubt the gas lobby will absolve the gas industry from any responsibility for the recent events that have transpired on our electricity markets, arguing the solution lies in even more gas production, and that renewable energy policies are more to blame.
To be sure, eastern Australia is short on supply of cheap conventional gas from the offshore Gippsland Basin and a few other locations. Expanding the gas base by exploiting unconventional resources such as CSG was always going to come at a price, since such resources are inherently more expensive.
But developing the new CSG fields at such scale was always going to risk that production would fall short of targets. As much was acknowledged by the joint Department of Industry and Bureau of Resources and Energy Economics study into Eastern Australian gas markets
The current development of LNG in eastern Australia and the expected tripling of gas demand are creating conditions that are in stark contrast to those in the previously isolated domestic gas market. The timely development of gas resources will be important to ensure that supply is available for domestic gas users and to meet LNG export commitments. Such is the scale of the LNG projects that even small deviations from the CSG reserve development schedule could result in significant volumes of gas being sourced from traditional domestic market supplies
The hope is that the events of 2016 are transients, related to temporary development schedule difficulties. If they are not, then god help domestic consumers. A broader question for our gas exporters is why should so much risk from such development schedule difficulties be defrayed onto domestic consumers?
In prosecuting the case to deliver more of our national gas resources to market, perhaps it is not too much to ask that domestic consumers are offered some insurance against any further development schedule difficulties incurred by our exporters? After all, it is our gas.
Domestic reservation, anyone?
Notes[1] Shale gas economics in the US is linked to co-produced liquids, and thus differs markedly from the CSG fields in Australia where there is no liquid hydorcarbon production.
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Mike Sandiford receives funding from the ARC for geological research.