Rudd Gloom Misses Australia’s Looming Natural Gas Surge: Economy

Prime Minister Kevin Rudd’s strategy of centering an election pitch on his ability to steer Australia through the end of a China-led minerals boom is overlooking the next big thing: natural gas.

The Treasury two days ago forecast deeper budget deficits in the next three years as growth slows, unemployment rises and mining investment wanes, constraining Rudd and opposition leader Tony Abbott’s election pledges. Whoever wins a three-year term at the Sept. 7 poll may find that gloom lifts from 2015 as a surge in gas exports replenishes Australia’s coffers and propels the nation toward becoming the biggest shipper of the fuel.