Queensland boosts inspectorate

The Queensland Government has set aside $550,000 in the 2008 - 09 State Budget for Queensland’s Petroleum and Gas Inspectorate.

Four specialist safety staff will join the Inspectorate to boost industry monitoring, inspections and audits.

Over the past three years, the rapid increase in CSG production, drilling, new pipeline and downstream gas use has had a significant impact on the workload of the Inspectorate, with over 3,400 locations on its inspections database.

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There are around 3,000 MW of gas-fired power stations in the planning stage, a number of liquefied natural gas projects, and growing demand for domestic and automotive gas services.

Minister for Mines and Energy Geoff Wilson said “Gas is a vital path to a cleaner energy future and it’s in abundance in the Surat Basin. The Surat is set to rival the Bowen Basin as the state’s economic powerhouse”.

Australia's energy future

Minister for Resources and Energy Martin Ferguson has outlined Australia’s response to the domestic and global energy security challenges, emphasising the need to do more with the country’s gas reserves.

Speaking at the Committee for Economic Development of Australia’s State of the Nation 2008 Conference, Minister Ferguson said high oil prices and high price volatility will continue to affect Australia’s economic outlook, however developments in coal-to-liquids and gas-to-liquids could play a greater role in meeting domestic demand for transport fuels and providing clean diesel and jet fuel to Asia-Pacific markets.

Minister Ferguson said “Not only do we have to do more with our vast coal and gas reserves; we have to find more oil.”

APPEA Chief Executive Belinda Robinson has welcomed the Minister’s comments. “The Government is to be applauded for grasping the gravity of the current global race for energy security and Australia’s strategic position as an energy superpower,” she said.

“World energy demand is forecast to grow 40 per cent by 2030. Today’s upward pressure on energy prices should be fuelling a serious look at how Australia makes the most of its energy resources and proximity to the Asia-Pacific energy market."

Ms Robinson said that under the right conditions, Australia had the capacity to triple exports of natural gas and to increase domestic gas use in processing and electricity generation.

“While we continue to find vast reserves of gas that can sustain us for more than 100 years, we remain underweight in the development of our gas reserves, according to leading analysts WoodMackenzie,” Ms Robinson said.

PIRSA receives funding

The South Australian Government will invest an additional $11 million over four years to strengthen the capability of the Minerals and Energy Resources Division of Primary Industries and Resources SA (PIRSA).

APPEA Chief Executive Belinda Robinson said the extra capacity within the department was important to ensure the pipeline of exploration and production applications kept moving.

The funding will provide the regulatory skills, departmental capacity and business confidence needed to ensure ongoing exploration for precious petroleum resources.