Australian Energy Producers Chair and Woodside Chief Executive Meg O’Neill has called for a “reset in the energy and climate conversation”, challenging opponents to be accurate with their comments.

Addressing the AEP Conference, Ms O’Neill said that when industry leaders speak “we are scrupulously careful to do so accurately and transparently”.

“And that is as it should be – society deserves the truth,” she said. “I believe critics of our industry would do well to take a similar approach.

“To this end, I commend (Federal Resources) Minister (Madeleine) King for her unequivocal statement that the Future Gas Strategy is ‘based on facts and data, not ideology and wishful thinking’.

“Because ensuring our industry can continue to supply safe, reliable, and affordable energy is not just in our industry’s interest – it is in the national interest.

“As industry, we must work constructively with government and offer practical solutions to the challenges the energy transition brings.”

Ms O’Neill welcomed the Federal Government’s Future Gas Strategy but said its success would be measured by whether it delivers policy reforms that address the barriers to new gas supply and investment.

She said the industry was pleased with changes to the Petroleum Resource Rent Tax, which have been passed by the Senate, saying it would help future investment decisions.

But that it had come at the expense of addressing the ambiguity in the consultation process for offshore approvals.

“Leaving this issue unresolved makes the timely development of new energy supply more difficult,” Ms O’Neil said.

“And the industry stands ready to work with the Government to progress these necessary reforms as soon as possible.”

Referencing the Future Gas Strategy, Ms O’Neill said it made clear statements about the critical role gas plays in Australia’s economy and will continue to play in the
future, and the need for new sources of gas to meet demand during the energy transition.

She said an example of this was BHP, which expects its local iron ore operations to need roughly seven times the amount of power it uses now by 2040.

The extra generation would be used to produce iron ore, but it would also be needed for decarbonisation projects, including the electrification of BHP’s rail and mining fleet.

To achieve this transformation, the company is planning to expand the use of gas-fired power at its Yarnima Power Station near Newman.

BHP estimates displacing diesel electricity generation with gas will avoid more than three million tonnes of carbon dioxide equivalent Scope 1 emissions between 2027 and 2052.

 “That is a huge emissions saving and it would be driven by gas,” Ms O’Neill said.

“This real-life case study highlights one of the key findings of a report Australian Energy Producers commissioned to inform its Future Gas Strategy submission.

“That report, by Ernst and Young, found that 26 years from now – when, hopefully, we are living in a net zero world, there will still be a need for gas.”

Ms O’Neill said delivering the new energy economy would require a scaling up of carbon management solutions. It was pleasing to hear the Federal Government’s
strong endorsement of the role carbon capture and storage can play in reducing the emissions intensity of natural gas production and the potential for CCS to
reduce emissions in hard to abate industrial processes such as steel and cement manufacturing.

“We know this technology works and we know it can deliver both environmental and economic benefits,” she said.

“Our trading partners want us to support their decarbonisation efforts by storing carbon here in Australia, consistent with Federal Parliament’s recent ratification
of amendments to the London Protocol.”

She commended Premier Roger Cook’s statement at the WA Energy Transition Summit last year when he said, “the benefits of WA helping other high mission
countries to decarbonise far outstrips the benefits of decarbonising our own economy”.

The Premier’s words showed a clear-eyed understanding of the complex, global nature, of the climate challenge.

“They reflect the pragmatic support that we’ll need to fulfil the title of today’s conference and deliver the new energy economy,” she said.

“With a Federal election and various state polls on the horizon I encourage all sides of politics to remain focused on these longer-term benefits.”

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