OIL AND GAS SECTOR

The Hon. J.D. HILL (Kaurna) (15:27): My question is to the Minister for Mineral Resources and Energy. What recent developments in the state oil and gas sector have occurred?

The SPEAKER: Well, the minister has a lot of scope here. Minister.

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Transport and Infrastructure, Minister for Mineral Resources and Energy, Minister for Housing and Urban Development) (15:28): Thank you very much, Mr Speaker. This government supports the resources sector, which continues to pay dividends to our towns, cities and communities of this wonderful state. The government is working closely with industry, and industry has secured ongoing investment, ensuring the ongoing expansion of the state's vibrant oil and gas sector.

Just last month, the Premier and Mr Ian Davies, the chief executive officer of Senex Energy, stood side-by-side as they announced that by working together we have paved the way for more than a quarter of a billion dollars in exploration and appraisal in the Cooper/Eromanga Basin to be fast-tracked. It was because of a strong government working with a strong industry that we were able to provide the regulatory certainty needed for this investment, an investment that is expected to see the creation of nearly 200 new jobs, and an investment that is just one of many providing opportunities to the people, the businesses and the communities of South Australia.

Mr Ian Davies of Senex described the current resurgence of investment in oil and gas in this state as a return to the 'golden age in the Cooper Basin'. South Australia is set to capitalise on this golden age through what industry leaders are describing as a visionary approach by this government and its agencies—an energy revolution that is happening right here, right now. I am sure that you are all well aware that when the tap was turned by the Premier on the Santos Moomba-191—a national first for commercial operation of deep shale gas wells and one that provides, to this very day, enough gas to power 40,000 homes across this country—it was only scratching the surface of our deep gas potential.

Across South Australia we see Santos, Beach Energy, Senex, Chevron, BP, Statoil, Northern Petroleum, Cooper Energy and others lining up to expand their businesses and their commitments both onshore and offshore of South Australia. This potential is only matched by the success stories of what great companies are already doing right here in South Australia.

Recently we have seen South Australia's own Beach Energy announce a record revenue of $700 million on the back of extraordinary growth. Beach Energy is now the number one oil producer in the Cooper Basin, producing more than 10,000 barrels of oil a day. Senex Energy also experienced strong growth from the doubling of oil output to 1.25 million from their Cooper operations, and Drillsearch posted an after-tax profit of $45 million, up from $10 million, due to record production and revenue.

Billions of dollars are being invested and billions of dollars are going to be invested across our state. This investment and jobs could have gone interstate. The Cooper Basin goes across borders but it is going on here and it is going on right now, and that is no accident. It is a result of deliberate government policy to create an investment environment that inspires confidence.

Time and time again this government has shown that South Australia works best when we work together with industry. We know that the resources sector in this state has expanded from four mines a decade ago, and that is no accident. The government—whether through PACE or the road map for unconventional gas, or a world-leading regulatory environment recognised internationally—has been there to assist industry invest, grow and create jobs. It is a proactive approach to encourage, facilitate and grow investment. It is an approach that is in stark contrast to the governments of Victoria and New South Wales—

An honourable member interjecting:

The Hon. A. KOUTSANTONIS: I'm not sure how—that have sought to stop investment in oil and gas by enacting moratoriums on fracking, not through science but through fear. Those governments are conservative governments and they are a disgrace.

Members interjecting:

The SPEAKER: I think the Minister for Minerals and Energy is now starting to debate the matter; in fact, I thought he was debating it earlier until the leader interjected 'Hear, hear', which caused me to pause in pulling the minister up. I also remind the minister that 'It is no accident' was a favourite expression of Lenin and the Bolsheviks.

The Hon. A. KOUTSANTONIS: Withdrawn!