Oil spill: Qld exploration site the size of Singapore takes state ‘back to the 1970s’
The Queensland government is hailing new oil and gas exploration rights as a way to open up Australia’s first major new oil province since the 1970s. But conservationists claim its the wrong move stepping back in energy history.
The Queensland government hopes a basin the size of Singapore in the state’s south west could solve the nation’s looming gas shortage and help drive down prices.
On Tuesday, the State Government announced Omega TN Pty Ltd, Tri-Star Stonecroft Pty Ltd and Drillsearch Energy Pty Ltd have been appointed as preferred tenderers to explore for gas and petroleum in the Taroom Trough, near Miles in South-West Queensland. A move criticised by the Queensland Conservation Council.
The 750 square kilometre exploration tenement forms part of a wider package of exploration areas, which were opened for tender last year.
According to the government, exploration in the region is aimed at unlocking future energy supplies to put downward pressure on prices.
Gas production from the area would occur under the Australian Market Supply Condition, the government said in a statement, putting Australian homes and businesses first for any gas produced.
Natural Resources Minister Dale Last said awarding the exploration rights in the Taroom Trough sent a “clear message that Queensland is open for business”.
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“This new exploration area is a critical step in boosting Queensland’s domestic energy supplies to put downward pressure on energy prices.”
While the petroleum potential of the Taroom Trough has been known for decades, the oil presence has not been well understood in the market, he said.
“This area is emerging as a real prospect to become Australia’s first major oil province since the 1970s, with serious potential to revitalise a domestic oil production industry.
“By giving industry confidence and laying the groundwork for new oil and gas production, we’re securing Queensland’s energy future, supporting regional jobs, and ensuring our resources sector remains strong for decades to come.”
Member for Warrego Ann Leahy said gas supply was critical for both energy security and agriculture.
“Gas is a major input into fertiliser, so when we create more gas supply, we help put downward pressure on manufacturing costs right across the supply chain,” Leahy said.
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“That flow-on effect helps keep fertiliser more affordable for farmers and supports the industries our South West Queensland communities rely on.”
Beach Energy was also awarded acreage in the emerging oil and gas region today and will take a non-operator position in Block 9 alongside Omega Oil and Tri-Star.
Managing Director and CEO Brett Woods said the Taroom Trough has significant potential to become a major hydrocarbon development region supporting domestic gas, Australian manufacturing and jobs.
“Beach will continue to seek further opportunities to build our portfolio in onshore Queensland, where the government is strongly supportive of the sector and Beach has the opportunity to further progress our vision to become Australia’s leading supplier of domestic energy,” Woods said.
“I commend the Queensland Government on its proactive approach to the release of acreage for exploration and production which is key to safeguarding our nation’s energy security, supporting Australian manufacturing and driving our economy.”
Queensland Conservation Council energy strategist Claire Silcock says while Queensland has opportunities to build future-proofed industries powered by renewable energy, the Queensland Government is instead taking the state back to the 1970s.
“The Queensland Government has decided to repeal renewable energy targets and withdraw support for new industries such as hydrogen in Gladstone. Instead, they are celebrating trying to take Queensland back into the 1970s by clinging to industries of the past, such as oil production,” Silcock said.
Silcock claimed the announcement showed the state government was bending over backwards for the fossil fuel industry.
“We don’t need more gas, we need to rein the gas companies in to stop them exporting our gas instead of supplying Queensland families and businesses. The Crisafulli Government has committed to a 75 per cent emissions reduction target. There is no credible path to this, or even net zero, that includes new gas projects.”
“The Crisafulli Government’s energy policy is clearly driven by an ideology to support coal, gas and now oil which will hurt Queensland communities and drive up power bills. We need to see well planned new renewable energy backed by storage to keep Queensland’s electricity affordable and reliable into the future,” Silcock said.
