Gas companies have manufactured shortage myth, economist says

But Shell Australia's Andrew Smith says onshore gas production ban will lead to price hikes for Victorian manufacturers

Australia's gas companies have manufactured a myth that there is a gas shortage, an economist with the Institute for Energy Economics & Financial Analysis, Bruce Robertson, said.

The idea that onshore coal seam gas exploration would ease pain for manufacturers by bringing down high local gas prices in a low-price global environment "goes against basic economic theory", he said.