Queensland’s Energy Industry Slams State’s Ban on New Oil and Gas Development in Lake Eyre Basin
The Queensland Mineral and Energy Industry Association has condemned the state’s decision to prohibit new oil and gas development in the Lake Eyre Basin, which is the largest drainage basin in the country. This controversial move came shortly after the resignation of former Premier Annastacia Palaszczuk and the appointment of Steven Miles as the new leader of the state.
The ban means that all future oil and gas production in the basin’s rivers and floodplains will be prohibited, but existing approved conventional gas developments are exempt. Holders of existing petroleum exploration permits can apply for a production lease until Aug. 30, 2024.
The Lake Eyre Basin is massive, covering 1.2 million square kilometers across Queensland, South Australia, the Northern Territory, and New South Wales. While it is mainly arid and sparsely populated, it is home to significant oil and gas resources.
Following the announcement, Queensland Resources Council CEO Ian Macfarlane criticized the state government for overlooking the potential social and economic impact of preventing further expansion of Australia’s gas reserves.
“Reports this week indicate Australia’s East Coast is facing another gas shortage over the next few years and will rely on Queensland producers to ensure supply to millions of homes and businesses,” he said in a statement.
Macfarlane emphasized that a decrease in supply would lead to higher gas prices for consumers and would exacerbate the cost-of-living pressures already facing Australians. He also lamented the blow to the energy sector, which has worked hard to maintain high standards while supporting local communities and regional industries.
The Queensland government’s decision has cast doubt on the future of the resources sector and could deter new investments, affecting the livelihood of local communities that rely on oil and gas extraction.
This comes after a report by the Australian Competition and Consumer Commission warned of a potential gas shortfall in Australia’s southern states in 2024. The report suggested that unless there was considerable transport and storage capacity, the shortfall risk would remain.
In response, Premier Miles defended the new policy, claiming that it strikes a balance by preserving the Lake Eyre Basin while allowing for industry growth and development. Environment Minister Leanne Linard echoed his sentiments, emphasizing the importance of preserving the basin’s ecological and cultural values.
Environmental group Lock the Gate welcomed the ban, expressing relief that it would protect the fragile and unique rivers and floodplains of the Channel Country from potentially damaging oil and gas extraction.
Unconventional oil and gas extraction has the potential to be incredibly damaging, requiring the drilling of thousands of wells and the use of millions of liters of water for a single frack. The ban offers protection against such destructive development.
The future of Australia’s energy production remains uncertain, and the debate between conservation and economic expansion in natural resource development is ongoing. With both sides adamant in their stance, the conflict is far from resolved.
