The Australian Energy Producers conference in South Australia last week came as the world grapples with its biggest energy shock in decades, while at home the oil and gas industry is being cast as both saviour and cash cow. In the lead-up to the federal budget there was a populist push for a 25 per cent gas tax that industry warned would crush investment. The Albanese government stepped back from that, for now, but its move on setting up a domestic gas reservation has left many in the sector confused.
It was against that backdrop that this discussion, A Global Energy Reset, unfolded.
Dr Michael Green from the United States Studies Centre set the tone by pointing to the shockwaves from the third Gulf war. Even if the conflict eases and the Strait of Hormuz fully reopens, he argued, something more lasting has shifted: energy security is now front of mind, and countries are actively seeking reliable alternatives.
Australia is well placed to meet that demand. As BP’s Rachael Risucci, MODEC’s Soichi Ide and Wood’s John Mtanios each noted, the opportunity is real, but so is the risk. If Australian governments make it too difficult to invest and operate, capital and customers will simply look elsewhere.
The tension, as the panel saw it, is that while domestic politics is confused and flat-footed, the rest of the world is moving fast, scrambling to secure supply in an increasingly uncertain age.
Panel
Prof Michael J Green, chief executive officer at the United States Studies Centre.
Rachael Risucci, BP’s vice president Australia, Gas & Low Carbon Energy
Soichi Ide, senior executive managing officer MODEC
John Mtanios is president of Wood’s Asia-Pacific business
Video courtsey of Australian Energy Producers, the peak body representing Australia’s natural gas and oil explorers, developers and producers.
