APPEA 2007

Santos boss calls for policy, fiscal revamp

AUSTRALIA’S energy policy and fiscal terms must be overhauled if they are to comply with the carbon-constrained economy of the future, according to Santos chief executive John Ellice-Flint.

Santos boss calls for policy, fiscal revamp

Addressing the APPEA 2007 conference in Adelaide yesterday, Ellice-Flint called for the Federal Government to “dramatically transform” its 2004 Energy White Paper.

“First it must better define Australia’s energy policy needs,” he said.

“What is the right balance between exploration, importation and exportation, and the forms of energy that we see playing a role in our energy future, whether they be hydrocarbons, nuclear or renewables.

“Two, our energy policy must be better integrated into other national priorities such as water. How we ignore the indelible relationship between energy, electricity, carbon and water in the current climate is beyond my comprehension.”

Ellice-Flint also called on the government to separate the portfolios belonging to Industry and Resources Minister Ian Macfarlane, so that Australia had a dedicated energy minister.

“We have an outstanding minister in Mr Macfarlane, but we only have a third of him,” he said.

“We need all of him. No more sharing with other portfolios – Australia needs and deserves a dedicated Minister of Energy.”

Meanwhile, Ellice-Flint also warned that the current fiscal regime was not competitive enough to encourage exploration and maintain the critical mass for a viable long-term hydrocarbon industry.

“To maintain global competitiveness, fiscal reform is required in the exploration and gas development areas,” he said.

“As a nation we need to know the size of our hydrocarbon resource so we can do long-term strategic planning both at a country and company level.”

He also expressed disappointment at mainstream coverage of the country’s future energy options and the ignorance displayed on the potential of gas.

“If I read another editorial, another article, that simplifies Australia’s energy and carbon challenges over the next 20 years to clean coal, renewables and nuclear I will lose the last of my follical resources.”

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