World marks hottest day as Labor grants more offshore gas permits

July 25, 2024
Issue 
offshore gas platform
Labor's 'Future Gas Strategy' locks Australia into more gas exploration and offshore drilling. Photo: Department of Industry, Science and Resources

尝补产辞谤鈥檚 federal resources minister sounds a lot like Scott Morrison with her insistence that Australia needs more, not less, gas.

While Morrison鈥檚 pitch was a 鈥済as-led recovery鈥, hers is 鈥渁 future made in Australia鈥. To that end, she announced on July 23 that Chevron, INPEX, Melbana and Woodside Energy would be granted new gas exploration permits.

碍颈苍驳鈥檚 announcement included the phrase that new gas will 鈥渇irm renewables and support the economy as Australia makes the transition to net zero emissions鈥.

As The Australia Institute鈥檚 (TAI) after Labor released its in May, 鈥済overnment policy has entered a backward land where logic is reversed鈥.聽

Environment groups challenged . A day after the , they warned it will fuel climate change and increase pressure on already stressed oceans and marine life.

The (IPCC) and the (IEA) are pushing for steep cuts in fossil fuels to have any hope of reaching net zero emissions by 2050.

That means , the supply of coal would have to fall by 99%, oil by 70% and gas by 84% to keep on track with the Paris climate targets.

But Anthony Albanese鈥檚 government is ignoring that, agreeing with the fossil fuel corporations that more gas is needed to 鈥 on the east coast.

Climate scientists and energy experts say Labor has been captured by the fossil fuel industry.

Domestic gas consumption falls

has long said Australia has Its data from last year projects that domestic gas consumption is leveling off, while demand for gas exports rise.

It said if the government bases its projections on 鈥渋ndustry participants鈥, it should not be surprising that fear mongering and recommendations for more investment in gas infrastructure are put.

TAI said even the data contained in reveals how wrong this argument is.

鈥淎ustralia is projected to use much less gas for electricity generation than it currently does,鈥 AEMO admits.

The (IEEFA) said in June that the use of gas on the east coast has been declining for 10 years 鈥渁nd this trend is likely to continue鈥.

About 80% of eastern Australia鈥檚 gas supply is for export, 鈥渂acked by proven and probable reserves, reducing the need for new gas supplies鈥.聽

IEEFA said new gas supplies are not needed in the long term and 鈥渕ore can be done on the demand side to further reduce domestic gas consumption鈥 including helping households and industry electrify and implement energy efficiency upgrades. These could 鈥渁ddress supply gaps while reducing energy bills鈥.

But while public money keeps flowing to fossil fuel corporations, there is no incentive to change: is being handed over in subsidies, a rise of 13% over 2023鈥24.

TAI鈥檚 analysis in May found that Labor has budgeted $54 billion for fossil fuel subsidies, five times the amount it has committed to its key housing policy 鈥 the $10 billion Housing Australia Future Fund.

Investing in failed technology

King also announced new permits for offshore carbon capture and storage (CCS) exploration 鈥 a technology that has yet been proven to work, certainly not on the scale required to be effective in mitigating climate change.

Joe Rafalowicz, Greenpeace Australia Pacific, said new carbon dumping permits are 鈥渁 step backwards鈥.聽

Billions of dollars have already been wasted on this technology and it is 鈥渁 distraction from the clean energy solutions we have available right 苍辞飞鈥.听

鈥淕reedy fossil fuel companies, like Woodside, use every excuse under the sun to keep drilling our oceans for gas 鈥 even the magical 鈥榗arbon dumping unicorn鈥 鈥 but the future lies in proven renewables like wind and solar.鈥

The IEA and the IPCC have said that, even if CCS worked, there is no justification for new fossil fuel projects in a climate emergency.

鈥淎 government that is serious about climate action will stop spending millions of taxpayer funds on carbon dumping, and would instead invest in a just, affordable, rapid clean energy transition.鈥

Betrayal of climate commitments

Rafalowicz said was 鈥渁 betrayal鈥 of Australian and Pacific communities to deliver accelerated climate action. He called on Labor to make its timeline to implement its transition pledge to COP28 public.

The Australian Marine Conservation Society said 碍颈苍驳鈥檚 plan to dump carbon pollution under oceans threatens our marine life and subsidises the fossil fuel industry to continue.

Permits have been issued for South-Eastern waters which, it said, are 鈥渂eing hit hard by climate change, warming 3鈥4 times the global average鈥.

AMCS Oil and Gas Campaign Manager Louise Morris said 尝补产辞谤鈥檚 Future Gas Strategy locked Australia and the world into more gas beyond 2025.

The permits for gas exploration and carbon pollution dumping for the waters between Victoria and Tasmania will impact some of the most important areas for our endangered marine life.

Tens of thousands of people oppose seismic blasting and test drilling proposals in the Otway Basin.

Morris said 尝补产辞谤鈥檚 carbon dumping permits will allow Esso/ExxonMobil to 鈥渞epurpose rusting old rigs and infrastructure, which have had two reported leaks and spills just this year, for dumping carbon in Bass Strait鈥.

The Coalition has already spent on CCS, which failed to deliver, Morris said. Now Labor plans to 鈥渢hrow another estimated at this proven failure鈥 over the next 10 years.

Long said there is 鈥渟cant evidence鈥 for 碍颈苍驳鈥檚 line that by ramping up gas production and exports, Australia is helping Asia shift from coal to clean energy.

He said 尝补产辞谤鈥檚 Future Gas Strategy effectively concedes that demand for gas exports will only continue under current policies and that scenarios consistent with committed climate action would lead to much lower demand.

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