Federal Resources Minister Matt Canavan says a blanket ban on fracking would amount to "an act of economic self-harm" for the Northern Territory as the onshore gas industry fears for its survival after Labor's landslide win in Saturday's election.
One of the key points of difference in economic and industry policy between CLP and Labor has been Labor's pledge to slap a moratorium on hydraulic fracturing, a controversial technology crucial for the extraction of unconventional gas, to carry out another review of the science, engage in more community consultation and strengthen regulation.
"All I ask the Northern Territory government to do is to consider the impact on the territory of a complete, blanket ban," Mr Canavan said.
"We would be better to look at each individual development proposal on its inherent merits," he said. "As a nation we need more gas and that presents an economic opportunity for Territorians."
Labor leader Michael Gunner has pledged to imposed a temporary ban on fracking.
The overwhelming win for Labor triggered calls by the industry for the review to be based on science and for the incoming government to avoid the sort of blanket ban on the process that could send investors packing.
"I do hope that sanity prevails," said Nick Mather, executive chairman of NT shale explorer Armour Energy, which says its acreage in northern Australia holds prospective resources of 41.3 trillion cubic feet of gas and 2.2 billion barrels of oil.
"I am confident that the basis for the decision to have a fracking moratorium is sensibly based and will be backed with science. I'd be disappointed if any government, regardless of their political persuasion, just kept it going on ad infinitum and simply avoided a conclusion because it was going to be politically difficult."
Victoria already has a moratorium on fracking and any onshore exploration drilling, which has been extended several times, and the promised moratorium in the NT further widens the restrictions on onshore exploration just as the federal government is driving reforms aimed at encouraging more supplies onto the market.
The Australian Petroleum Production & Exploration Association said the moratorium was unnecessary but admitted it reflected community concerns about the industry's impact which it said had been stirred up by false and exaggerated claims by opponents.
APPEA NT director Matthew Doman said on Sunday said there was "no reason" for a moratorium, noting the studies that have already found that the activity is safe if properly carried out and regulated. Fracking can also be used to extract conventional gas from onshore fields, but isn't used at offshore fields that support the NT's growing LNG export industry.
Re-elected Member for Wanguri Nicole Manison said fracking was "a real issue of concern for many Territorians".
"From that we're going to sit down and make a decision about whether or not fracking is banned in the Northern Territory, or if it is allowed – in what highly-regulated way would it be allowed," she told the ABC.
"At the end of the day it's not good news," said Richard Cottee, managing director of NT gas explorer and producer Central Petroleum, who questioned a moratorium and made an argument that Central, as a local employer whose conventional gas production lies in non-agricultural land, should be less affected.
Mr Mather, managing director of DGR Global which owns 23.25 per cent of Armour, said Queensland had shown how the coal seam gas industry could co-exist with farming, to the benefit of communities, landowners and the state government. He said he thoroughly supported keeping fracking away from aquifers and also suggested decisions be made on a case by case basis.
"I do appreciate that a moratorium will provide the time that is necessary to properly investigate and conclude where you can do it safely and where you can't," he said. "I am confident that the government there will balance economic outcomes with social and environmental outcomes and hopefully keep politics out of it."
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