The energy giants argued that Australia's tax and regulatory regimes made the country internationally uncompetitive and were an obstacle to large-scale investment in its energy industry.

The taskforce, which will report back to the government by the end of April, will look at development of remote reserves, satisfying eastern state markets, greenhouse gas emission reduction and the effect of the regulatory regime on development.

One issue that has drawn a lot of industry anger recently has been the abolition of accelerated depreciation. Many in the industry argue that it unfairly penalises companies involved in the construction of projects such as pipelines and offshore platforms which require huge capital outlays.

Industry lobby groups have said the proposal to have accelerated depreciation move from about eight years to 50 years means the costs of installing infrastructure would be too high while rates of return for transporting gas will be too low.