Credibility up in flames as government opens 21 new gas and oil exploration sites

The federal government will open up 80,000 square kilometres of new offshore acreage – an area larger than Tasmania and ACT combined – to gas exploration as Prime Minister Scott Morrison continues his ‘gas-led recovery’.

During a speech made to the Australia Petroleum Production and Exploration Association (APPEA), Mr Morrison praised the important role of gas in Australia’s economic future.

“The oil and gas sector is a major contributor to Australia’s prosperity – always has, will always be – employing tens of thousands of women and men across the country, many of them in high-wage jobs in regional Australia, creating stronger, more resilient local communities,” he said.

This is despite the latest ABS data showing the gas and oil sector has shed 3,800 jobs between May 2020 and February 2021, during which time the remainder of the economy added 863,000 jobs.

Credibility up in flames as government opens 21 new gas sites

Climate Council acting CEO Dr Martin Rice argued that while the PM is prone to praising Australia’s efforts to curb climate change on the world stage, back at home the Morrison government is inviting fossil fuel companies to exploit new gas fields.

“The world sees through our climate-wrecking hypocrisy and is losing patience with Australia, and it is Australian workers and businesses who will bear the consequences, such as carbon tariffs from G7 economies,” he said.

“The decision to open up new oil and gas exploration, at a time when energy experts, investors and our strategic allies are all moving away from fossil fuels, goes against all scientific and economic reasons.”

Australia’s new gas and oil venture comes a month after the International Energy Agency found it could still be possible to reach net-zero emissions by 2050 if explorations of new fossil fuels seized this year.

“The science is clear: we need to rapidly reduce emissions this decade, and no new coal, oil and gas projects are compatible with protecting Australians, our economy and unique ecosystems from worsening climate impacts,” said Dr Rice.

Dr Rice pointed out that the economics for new gas prices no longer stack up, with consumers paying more for the privilege of using gas.

“Gas drives up electricity prices. Gas is a fossil fuel that worsens climate change. As our trading partners shift away from fossil fuels like coal, our fossil-fuelled economy is becoming increasingly exposed, and vulnerable,” he highlighted.

The Climate Council has recommended Australia cut its emissions by 75 per cent by 2030 (based on 2005 levels), and reach net zero by 2035.

“By choosing to ignore the experts and passing measure after measure that actively worsens climate change, the federal government is exposing Australians to growing economic, diplomatic and climate risks,” said Dr Rice.

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About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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