Developing a national energy policy

APPEA believes a national energy policy should deliver:

• a commercially viable, domestic energy sector based as far as is practicable on the effective use of Australia's energy resources and expertise in a socially responsible manner
• a reliable supply of energy, produced at internationally competitive prices and under world's best practice safety and environmental management regimes.

These objectives must be pursued a commitment to maintaining the Australian petroleum industry’s international competitiveness. Market forces should be the preferred basis for policy; government intervention should only occur if significant market failure is clearly demonstrated.

Energy policy must address:

• the projected decline in Australia's self-sufficiency of crude oil and condensate supply
• the need to ensure that gas plays a greater role in the energy mix
• fiscal and other issues reducing the competitiveness of Australia's current and potential gas exports.

A level playing field for gas

Any final decision on fuel inputs should be based on each fuel source’s intrinsic economic and technical merits – not on political considerations. Australia is rich in gas, and gas-fired electricity generation is much cleaner and less water-intensive than coal-fired power. And unlike renewable energy, gas is relatively cheap and is suitable for both baseload and peaking power. Yet the Australian tax and fiscal systems put gas at a disadvantage relative to coal, while the renewable energy target (RET) scheme advantages renewable energy over gas.

APPEA is striving to ensure gas can compete effectively as the fuel of choice for power generation and industrial energy in Australia as this would serve commercial and national interests by providing an energy mix that is cleaner, more affordable and more secure.