APPEA says the results from the latest rounds of bidding for offshore petroleum exploration acreage, released recently, confirm a deepening problem for Australia.
“The results announced today will surprise and alarm people across the industry. With just one bid in the first round of releases in 2016, offshore exploration is in dire straits,” said APPEA Chief Executive Dr Malcolm Roberts.
“We are witnessing something more fundamental than just a passing, cyclical downturn. Offshore exploration has been in steady decline for many years, despite strong commodity prices until recently.
“We are already feeling the effects of this decline. Australia’s oil production is at its lowest level since the 1960s.
“A combination of pressures is stifling the exploration needed to keep Australia’s industry growing and competitive. Urgent action is needed to reverse this trend.
“Containing unnecessary regulatory costs and time delays is essential.
“Policy makers should not lose sight of the fact that investment capital is scarce and will always go to the best commercial prospects. Australia needs to maintain a stable, attractive policy environment in key areas such as tax and environmental regulation.
“APPEA supports further work to develop practical options to promote exploration in promising but under-explored and frontier areas.
“There are no easy solutions that will deliver a quick turnaround. But we need to see governments recognize that business as usual will not deliver the new reserves needed to sustain and grow one of Australia’s most important industries.
APPEA red flags continuing trend of falling exploration
Posted by | 18/12/2016
