The Australian Petroleum Production & Exploration Association on Monday said the Queensland government’s gas action plan is a recognition of the need for regulatory reforms.
APPEA chief executive, Malcolm Roberts, said that with the AU$70 billion investment in local LNG project, Queensland has become a world leader.
Roberts added that the state is in a position to supply gas to other states that have passed on the opportunity to develop their own industry, stressing the importance of Queensland gas with a possible gas supply shortfall faced by the eastern Australia by 2019.
“It is heartening to see the government accept the need to reduce the regulatory costs of doing business in Queensland, industry has already sharply cut its own operating costs to stay competitive in a depressed global market,” Roberts said.
Smaller explorers are facing high upfront regulatory costs and have a hard time attracting investment capital. However, smaller explorers play a vital role in finding and developing new gas reserves, according to Roberts who added that reforms in this area will push the industry to turn exploration into production.
He concluded that the government’s rejection of domestic gas reservation is welcome recognition that regulatory interventions don’t deliver reliable supply or put downward pressure on prices.