Australian Petroleum Producers and Explorers Association

Mr ODENWALDER (Little Para) (14:32): My question is to the Minister for Mineral Resources and Energy. Can the Minister inform the house about South Australia's participation in the recent Australian Petroleum Production and Exploration Association Conference in Melbourne and how that participation was received?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (14:32): I thank the member for the question and note his ongoing support for the oil and gas sector, an industry that spent $595 million on exploration in this state in the year to March, including $177 million in the first three months of this year.

I am pleased to inform the house that South Australia had a strong presence at the Australian Petroleum Production and Exploration Association (APPEA) Conference. This gathering brings together all the major producers, explorers, service providers and regulators to discuss shared experiences in the oil and gas industry and discuss the challenges and innovative advances of the past year. Let me say, it has been a challenging year for the sector, not only due to the fall in commodity prices but also the pressure that has been put on the industry across the board to reduce costs and increase competitiveness.

During challenging times such as these, it is important that jurisdictions such as South Australia continue to maintain a high profile at these events. I was delighted to attend the APPEA Conference and also to use the occasion to promote South Australia. It was an opportunity to meet major Cooper Basin producers but also to talk to those companies embarking on significant exploration programs in the Bight Basin in commonwealth waters off South Australia.

As well as our prominent South Australian presence in the exhibition hall, I was pleased to host a breakfast on the sidelines of the formal conference. At this breakfast, Mr Speaker, I echoed the call you have heard many times before that this government is pro-investment, pro-business and pro-jobs, that the South Australian government is steadfastly committed to unlocking the full potential of our state's mineral and energy resources.

Because of the proactive approaches by industry, government and the community, this state remains the epicentre of the charge to develop natural gas in deep unconventional reservoirs. South Australia has been independently assessed as having one of the top three regulatory frameworks in the world for gas in unconventional reservoirs.

I have already highlighted how the industry is adjusting to the pressure to both reduce the costs and increase productivity to remain competitive, and it is clear from my discussions at APPEA that there are critical challenges for the nation's oil and gas sector. Challenges come from our need to defend the industry from the forces that would put a moratorium on fracture stimulation and impose investment-killing policies such as gas reservation. South Australia stands steadfast in defence of evidence-based policy-making and against those people who peddle myths and untruths to undermine this vital sector.

I was pleased to tell the 70 attendees that the government is doing its share to have independent evidence produced to allay community concerns about the industry. This includes research by the National Centre for Groundwater Research and Training on the impacts of oil and gas activities on aquifers. The state government is also in the process of commissioning independent work by the University of Adelaide on the best practice for cementing wells. I also took the opportunity to release a new 16-page public information guide, called The Facts, about natural gas and fracture stimulation in South Australia. I am confident that this booklet and its complementary website will go a long way to countering many of the fears and myths about the environmental impact of this industry.

We are regarded as one of the top three regulated oil and gas industries in the world, and that is a reputation of which we should be proud. As for how South Australia's participation was received, I can point you to an article in the Business Spectator that singled out South Australia and its government as:

prepared to take community concerns seriously in a practical way while chasing the economic benefits of a thriving energy sector.

It went on to say:

In a political environment where governments in other southern states are continuously wriggling to cope with the media-fuelled forces fighting to stymie fossil fuels and gas development, the South Australian stance is giving the petroleum industry heart.

This is a government that stands with the industry, that is prepared to safeguard its reputation against lies, and that will strive to attract investment that will grow jobs and generate royalties for the people of this state.