Coalition senators' additional comments

Introduction

1.1The Coalition recognises the importance of security and stability in the gas industry, for oil and gas workers, continued investment, and consumers. Ensuring adequate gas supply by securing a strong and stable oil and gas industry will drive energy prices down for businesses and households.

1.2Australia’s gas sector has seen serious uncertainty over the last two years, and this coupled with dramatic market interventions have seen the risk of supply shortages emerge, and prices go up. In particular, the offshore oil and gas sector has seen significant delays to their approvals thanks to two court challenges in the last 18 months. These challenges saw the National Offshore Petroleum Safety and Environmental Management Authority’s (NOPSEMA) average approvals period reach over 560 days, despite a statutory 30-day timeframe.

1.3This delay was the result of a lack of clarity and guidance from the Australian Government on consultation requirements, and that is why the Coalition has consistently called for urgent reform to commence to resolve the regulatory uncertainty facing the sector.

1.4Whilst this Bill does not solve the regulatory issues within the offshore oil and gas industry, it does provide the structure for the Government to take the much-needed reform.

Workplace Health and Safety Reform

1.5The Coalition notes that the workplace health and safety reforms set out within this Bill are the result of a review that the Coalition initiated in government.

1.6The Coalition supports responsible workplace health and safety laws in the oil and gas industry, which protect workers without providing militant unions with restrictive powers. Offshore oil and gas workers operate in extreme conditions, and play an important role in delivering essential, reliable energy for Australia and our international partners.

1.7The Coalition notes support from Australian Energy Producers, and Woodside for the workplace health and safety reforms set out in this Bill. As MsSamanthaMcCulloch, Chief Executive of Australian Energy Producers told the committee hearing, ‘Australian Energy Producers supports the general intent of the amendments to the act to improve safety outcomes for Australia's offshore workforce’.[1]

Offshore Regulatory Reform

1.8As outlined, the Coalition has repeatedly called for urgent reform to the offshore oil and gas approvals processes. In particular, around consultation requirements, which were raised as issues in two court cases in the last 18 months.

1.9It is important to note that Schedule 2, Part 2—which was of contention throughout this inquiry—does not change any current requirements. Rather, it simply ensures that existing arrangements between NOPSEMA’s approvals process, and the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) are not altered. This arrangement ensures that there is not an unnecessary duplication of approval requirements, which would put an undue burden on the sector.

1.10As Mr Robert Jeremenko, Head of the Oil and Gas Division in the Department of Industry, Science and Resources, said:

…the schedule does not introduce anything new into the law; it simply allows flexibility for improvements into the law to be made without automatically reintroducing a burdensome and overly bureaucratic process.[2]

1.11In addition to this, Mr Bruce Edwards, Head of the Nature Positive Regulation Division within the Department of Climate Change, Energy, the Environment and Water highlighted that NOPSEMA’s processes had the endorsement of the EPBC Act, telling the inquiry that ‘the EPBC Act does not apply to those [NOPSEMA’s] arrangements, because they’ve been endorsed as meeting the Act’s requirements’.[3]

1.12It is apparent from both the departmental representations at the inquiry, and representations from the oil and gas industry that the removal of Schedule 2, Part 2 would open NOPSEMA and the offshore oil and gas sector to additional, undue burdens.

1.13Further, it is apparent that despite some witnesses and submissions attempting to claim otherwise, the inclusion of this Schedule does not change any existing environmental standards.

1.14It is disappointing to see Greens and Independent Senators refuse to genuinely engage on regulations that seek to balance environmental, social and economic outcomes, instead using their opposition to Schedule 2, Part 2 as a smokescreen for their ideological crusade to shut down the entire gas sector.

1.15The Top End Aboriginal Coastal Alliance highlighted their support for the preservation of the existing arrangements between the EPBC and NOPSEMA, telling the committee that:

TEACA are supportive of the proposed changes presented to the bill that provides for these matters regarding the proposed additions of section 790E to preserve the effects of the offshore petroleum and greenhouse gas storage proposal.[4]

1.16As outlined, the offshore oil and gas sector has faced significant difficulties in the last 18 months. This Bill will ensure that the Minister for Resources has the regulatory security to propose reforms to the approvals process, to ensure the long-term future of the oil and gas sector in Australia.

1.17With gas shortfalls looming in Australia in coming years, and the increasing demand for Australian energy resources from our international partners, it is imperative that the industry receives regulatory and legislative clarity.

Senator Andrew BraggSenator Dean Smith

Deputy ChairMember

Liberal Senator for New South Wales Liberal Senator for Western Australia

Footnotes

[1]Ms Samantha McCulloch, Chief Executive, Australian Energy Producers, Proof Committee Hansard, 14 March 2024, p. 2

[2]Mr Robert Jeremenko, Head, Oil and Gas Division, Department of Industry, Science and Resources, Proof Committee Hansard, 14 March 2024, p. 39.

[3]Mr Bruce Edwards, Head, Nature Positive Regulation Division, Department of Climate Change, Energy, the Environment and Water, Proof Committee Hansard, 14 March 2024, p. 44.

[4]Mr Bobby Wunungmurra, Founding Member, Top End Aboriginal Coastal Alliance Incorporated, Proof Committee Hansard, 14 March 2024, p. 23.