One of the most controversial aspects of the reforms is the break-up of Western Power into three separate entities. Many in the market believe the Government's determination to implement the reform package could see the position of Western Power chief David Eislze (who opposes disaggregation) become untenable.

On the eastern seaboard, Industry Minister Ian Macfarlane wants Australia's main consumer watchdog to oversee the nation's $100 billion energy industry, thus delivering a blow to Warwick Parer's plans for a single regulatory authority. As you would expect, state energy ministers are not exactly thrilled about the plan.

This week saw the East Timorese begin to debate the merits of the Timor Sea Treaty. With the Sunrise project in limbo, many sceptics in the market believe the Sunrise partners (Shell, Woodside, Phillips Petroleum and Osaka Gas) will use any wayward comments from parliamentarians there as fodder to divert attention for the real reason in the project's slow development - their own internal squabbling.

Staying with politics and the energy industry, the Federal Government found itself in hot water after leaked Cabinet documents showed it knew beforehand that too much ethanol in petrol could cause extensive damage to engines of ordinary motorists.

WA's Curtin University of Technology is the site for the new 'Centre for Fuels and Energy', which just opened this week. The centre is a high level project involving many Australian businesses and government groups, which will also build on the burgeoning relationship with China.

In the markets, junior explorer Essential Petroleum was in the market looking to raise funds, as was Mosaic Oil, which will use the money to help build the pipeline that will connect its Churchie gas field to Queensland grid.

In a development that is sure to fire up Hardman's AGM tomorrow in Perth are reports the company is under investigation by the Australian Securities and Investment Commission, which will look into irregular share trading activities preceding the company's share placement in late September.

Controversial oil shale producer Southern Pacific Petroleum is cashed up after raising nearly $10 million in a rights issue and private placement, bringing the amount of funds available for its Stuart Project to nearly $20 million.

Melbourne-based Lakes Oil NL has given partner AusAm Resources till the end of the year to raise the necessary funds for their onshore Gippsland Basin joint venture.

One company that could go to the market looking for more money is energy investor CityView, who told the market this week its loan to IT developer and Burswood neighbour Sands Solutions could be in jeopardy now that the company said it is in the hand of administrators.

Out in the moose pastures, Santos and partners announced a successful oil discovery in the southern highlands of Papua New Guinea after Bilip-1 hit hydrocarbons.

Drillsearch Energy said it acquired new 2D seismic data from its exploration permits in the Southern Bornaparte, offshore Western Australia, and hopes to start 3D seismic work early next year.

Norwest Energy continued to mop up the remainder of Black Rock Petroleum's Perth Basin portfolio by picking up 80% and operatorship of EP-419 with Black Rock retaining the rest.

Emerging conventional player Eastern Star Gas is one step closer to getting a petroleum production lease from the NSW Government after the Narrabri Shire Council granted development approval for its Coonarah Gas Field.

The Japanese are looking to diversify from the turbulent Middle-East and are looking at emerging oil and gas projects in Australia to help them. During the week, Mitsui farmed into the BassGas project by buying a stake from Australian Worldwide Exploration. Together with farmins off the WA coast, this means the trading house giant has a portfolio of assets across the Australian continent.

Overseas, the Spanish and French authorities are to crack down on old, single-hull tankers following the disastrous 'Prestige' tanker oil spill off the Spanish coast. French submarines have been despatched to check if the tanker is still leaking.

On the other side of the world, a Greek-owned tanker carrying 20,000 tonnes of LPG caught on fire off the coast of Hong Kong though firefighters said there was no danger of an explosion.