APPEA says greater industry consultation needed to avoid ‘ad hoc’ policy decisions

The nation’s peak oil and gas body has used its WA State election platform to call for greater industry engagement, after criticising both the McGowan Government and the Liberal opposition over “ad hoc” policy decisions. The Australian Petroleum Production and Exploration Association said it was critical WA attracts long-term business investment to grow the State’s oil and gas industry as the economy recovers from COVID-19. The sector has been hammered by falling oil prices amid a steep decline in consumption of gasoline and jet fuel. Releasing its blueprint for the next WA Government, APPEA said investment would be locked in by providing a stable regulatory regime and “ongoing engagement with industry to prevent ad hoc policy decisions”. “For example, the sudden changes to the WA Domestic Gas Policy... without industry consultation could, contrary to its aim of increasing gas supplies for domestic consumers, actually reduce supply as a result of reduced investment and consequently, the State’s energy security.” Premier Mark McGowan was slammed by industry groups in August last year after updating the domestic gas policy to prevent onshore gas extracted from WA being sent to the eastern states or overseas. APPEA WA director Claire Wilkinson said the industry stood “ready and willing to help” with the recovery but urged political parties to collaborate to maximise benefits to the community. “From the McGowan Government’s abrupt changes made to the Western Australia Domestic Gas Policy, to the Opposition’s recent energy announcement, decisions made without industry consultation pose a genuine risk to our State’s energy security and economic recovery.” Opposition Leader Zak Kirkup last week announced a Liberal Government would deliver a “mega project” in renewables. It would produce and export 250,000 tonnes of green hydrogen a year from a port near Geraldton, in the Mid West. But the announcement blindsided the energy industry, with stakeholders saying natural gas — which accounts for over 50 per cent of the State’s energy supply — still had a key role to play. APPEA stressed the importance of natural gas as a partner to renewable technologies in its election platform, noting gas-fired generators can be rapidly started to provide baseload power and grid stability whenever wind and solar are intermittent. It also said natural gas could be utilised to help meet emissions reductions targets, including by supporting low emissions technology like blue hydrogen with carbon capture and storage. Blue hydrogen is derived from natural gas and is generally considered a cheaper alternative in the short-term to green hydrogen, made from 100 per cent renewable energy. In other recommendations, APPEA said it supported responsible onshore development — highlighting “significant” onshore gas opportunities in the Perth and Canning Basins — and urged the Government to recognsise interstate fly-in, fly-out workers will be needed for some specialised skillsets. Mr McGowan has been urging urging resources companies to incentivise workers to relocate or prioritise the employment of WA workers. Almost $7 billion worth of WA oil and gas projects were either under construction or committed in 2019-20.

APPEA says greater industry consultation needed to avoid ‘ad hoc’ policy decisions

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