The greenies are at it again

Senate to resume Bight probeFriday, 16 September 2016

Haydn Black

THE GREENS have gone one step beyond successfully reconstituting a Senate inquiry into oil and gas exploration in the Great Australian Bight by introducing legislation into the parliament that could bring an immediate ban on all exploration along the southern margin.


While unlikely to garner enough votes to succeed, as the move is not expected to garner the support of the two major parties, the proposed legislation puts further pressure on BP’s plans to drill the Stromlo-1 and Whinham-1 and earlier stage exploration being conducted by Santos, Chevron Corporation and Bight Petroleum.


It also raises issues of sovereign risk for any potential new entrants in the Australian exploration.


South Australian Greens Senator Sarah Hanson-Young’s proposed legislation aims to stop all exploration in what is considered to be one of the most prospective areas for big new liquids discoveries.


With fellow SA Senator Nick Xenophon and Labor she has been able to reconstitute the stalled Senate inquiry into the plans by BP and others to drill for oil in the Bight.


The original inquiry lapsed when the July 2 election was called, but yesterday the Senate environment and communications references committee agreed to call for more submissions and holding two new public hearings in Adelaide and Canberra.


New submissions are due by October 17.


The final report is due next March, most likely after Stromlo-1 has been completed, and almost one year after the original due date.


There have been 63 submissions to date, however since the original deadline closed concerns have been raised about the risks caused by a subsea bolting issue and the location of the Stromlo-1 well and its follow-up within a protected marine zone.


Hanson-Young, who recent went on a tour of the Great Australian Bight, said the pristine region was too important to risk with drilling.


She said the inquiry would “bring some much needed transparency and public scrutiny to this ridiculously secretive process”.


“The local community, the environmental groups, the industries and the traditional owners need to be heard. This inquiry will let that happen,” she said.


“BP will put this spectacular marine park at risk and, if they’re given approval, there are several other companies lining up behind them.


“Allowing the company responsible for the Gulf of Mexico spill to drill in the Great Australian Bight is a disaster waiting to happen.”


While doomed to failure, the Australian Petroleum Production and Exploration Association has condemned the proposal as “unnecessary and economically damaging”, lest it catch the spirit of public attention.


Banning oil and gas exploration in the Great Australian Bight would potentially increase Australia’s reliance on imported oil and deprive SA of much-needed new investment and jobs while delivering no environmental benefit, APPEA SA director Matthew Doman said yesterday.


Doman said any exploration in the Bight would only proceed under the highest environmental standards and only after intense scrutiny by the National Offshore Petroleum Safety and Environmental Management Authority, the body that has been responsible for offshore regulations since the Montara oil spill.


“NOPSEMA does not allow any petroleum activities to proceed without the highest standards of environment and safety legislation, and appropriate community consultation,” Doman said.


NOPSEMA has twice knocked back plans by BP to drill and is expected to weigh in on a new application early next week.


“The legislation proposed by the Greens would undermine NOPSEMA’s independence and integrity and the regulatory certainty that is necessary to attract new investment in offshore exploration,” Doman said.


“Australia already imports most of its oil. Unless new discoveries are made, we will soon be relying on imports for all of our transport fuels.


“Companies that are prepared to invest hundreds of millions of dollars in exploration activity should be allowed to get on with the job.


“With proper regulatory oversight, there’s no reason why South Australia cannot have a safe, sustainable offshore petroleum industry, just Victoria and Western Australia have had for several decades.


“The potential benefits in terms of jobs, investment and revenues to government could be significant.”


Doman said oil and gas exploration, as well as other commercial activities such as fishing, had been allowed in the Great Australian Bight marine reserve since 1995 and a recent government review had recommended no change to its multiple use status.


The Greens move come as more of Australia’s offshore areas could be locked up in undrillable marine sanctuaries, such as the Bremer Basin.


In the unlikely event Greens legislation passes the Senate, it could result in millions of dollars compensation being paid to companies who lost licences as a result of the law.