The Cost of Capitalism: Who Really Profits from Australia’s Energy Wealth?

In a world where the gap between corporate profits and community well-being continues to widen, the latest financial results from Australian energy giant Woodside raise critical questions about who truly benefits from the country’s vast natural resources. The company’s 2024 full-year profits have more than doubled to $US3.57 billion ($5.6 billion), while production hit record highs, further entrenching the idea that wealth is extracted from the land but rarely finds its way back to the communities that need it most.

This scenario is a textbook case of capitalism rewarding a privileged few while the broader population struggles with cost-of-living crises, housing unaffordability and economic inequality….

And at the same time, the environmental costs of unchecked fossil fuel extraction—climate change, loss of biodiversity and destruction of sacred Indigenous lands—are left for the public to bear.

But what if there was another way? What if national resources were managed not for the benefit of shareholders but for the common good? Bolivia’s experience under Indigenous leadership provides a compelling case study that Australia should take seriously.

“Under Morales, the number of Bolivians living in extreme poverty has fallen to one in five from more than a third of the population of 10 million in 2006.” – Reuters, 2014

Evo Morales and Bolivia’s Nationalisation Model

When Evo Morales, Bolivia’s first Indigenous president, came to power in 2006, he took a bold step that many Western governments would not dare: he nationalised Bolivia’s oil and gas industries. Instead of allowing multinational corporations to extract wealth while leaving crumbs for the local population, Morales ensured that revenues were redirected into public services, infrastructure, and social programs.

The results were transformative:

• Poverty rates fell from 60% in 2005 to 35% in 2018 as state-controlled revenues funded social welfare programs.
• Public investment in healthcare and education surged, reducing illiteracy and improving life expectancy.
• The economy saw consistent growth, proving that resource nationalism could be both ethical and economically viable.

Contrast this with Australia, where massive corporate profits from mining and energy projects often disappear into private hands, leaving Indigenous communities and working-class Australians behind.

Reclaiming Resources for the People

Australia is a country rich in natural wealth, yet the benefits of these resources are hoarded by corporations like Woodside, BHP and Rio Tinto while Indigenous communities face systemic disadvantages…

With Traditional owners often find themselves fighting just to have a seat at the table, let alone reap the financial rewards of the lands they have safeguarded for thousands of years.

Thus, it’s time for Australia to rethink its economic model.

And the success of Bolivia’s nationalisation policies (despite the negatives) under Morales demonstrates that an alternative exists—one where resource wealth is distributed fairly and reinvested in communities.

So while nationalisation may not be a one-size-fits-all solution, stronger government control, increased taxation on extractive industries and Indigenous-led resource management could be steps toward economic justice.

Moving Forward: Indigenous Leadership in Resource Management

The push for self-determination among First Nations Australians is growing.

Calls for Indigenous-led economic frameworks, similar to those enacted in Bolivia, could reshape Australia’s approach to wealth distribution. Recognising Indigenous sovereignty over land and resources is not just a matter of justice—it is a practical economic strategy that could drive long-term, sustainable development.

If we are serious about fairness, sustainability and economic sovereignty, we must ask ourselves: Who should benefit from Australia’s natural resources—the corporations or the communities?

Until our economic system prioritises people over profit, we will continue to witness billion-dollar profits for the few while the many struggle to get by.

The choice is ours and history has already shown us that there is another way.