Industry leader reminds South Australians of importance of gas and oil

SUPPORT: Australian Petroleum Production and Exploration Association chief executive officer Andrew McConville encourages South Australians to continue their support for oil and gas as we move towards renewable energy.
SUPPORT: Australian Petroleum Production and Exploration Association chief executive officer Andrew McConville encourages South Australians to continue their support for oil and gas as we move towards renewable energy.

While the Upper Spencer Gulf represents the powerhouse of the states renewable energy resources, residents are reminded to think of the importance of oil and gas as a reliable source of energy in their everyday lives.

Aside from the development of renewables, the oil and gas sector faces an enormous challenge in recovering from the COVID-19 pandemic.

From turning on your stove top to putting petrol in your car, oil and gas is used in our daily lives and for the past 60 years has provided South Australians with a cost-effective, reliable energy source.

Australia's oil and gas industry has invested more than $350 billion in oil and gas supply infrastructure development in the past decade, has contributed to government revenue through the payment of $71 billion in tax payments and levies and supports more than 80,000 jobs.

Australian Petroleum Production and Exploration Association chief executive officer Andrew McConville is encouraging residents to continue their support for oil and gas as we move towards sustainable energy.

"The key point for us is the importance of South Australia and its gas industry and there is a lot of talk at the moment with coming out of COVID," he said.

"I think SA is a really interesting study of how renewables and gas can complement each other because a lot of people see the debate around energy as well - it has to be renewables or it has to be fossil fuels - and, in fact, we say you can have both working together.

"We have had such a long history of gas development not too far north from here at the Cooper Basin and then looking at how places like the Upper Spencer Gulf can continue to develop renewables, get their emissions down, but support that with gas.

"We need to understand the role of gas in our daily lives and the importance of gas, not just now ... and that community engagement part is really important in what we do.

"Now and probably for the foreseeable future there isn't adequate storage capacity for renewables.

"Battery technology is not yet large enough, efficient enough and cheap enough to provide that storage, so when the sun isn't shining or the wind isn't blowing, you have still got a reliable energy supply.

"It is about recoginising that this is an important industry that can play a significant role in delivering energy supplies, generating jobs and exports."

After an announcement from the federal government on September 15, key steps were outlined to help grow Australia's oil and gas industry.

Mr McConville said the announcement was "a good first step to reinvigorate the industry which will be important to help power Australia's economic recovery".

"Reliable and competitively priced energy is crucial to the health of our nation's economy," he said.

"While the average wholesale gas price in Australia last year was about 40 per cent less than the average wholesale price for the Asia Pacific region, more can be done to lower the retail price paid by consumers and businesses.

"The government's plan recognises there is no 'silver bullet' to drive down gas prices and that several steps need to be taken."

This story Powering gas and oil first appeared on The Recorder.

Comments