PM says encouraging
petroleum exploration a high priority
17-July-06 by AAP
The federal government has flagged a push to encourage energy companies to
explore for more oil in Australia.
As motorists deal with increasingly high fuel costs, further exacerbated by
trouble in the Middle East, Prime Minister John Howard has indicated the
government would take steps to encourage greater energy exploration.
"While known oil reserves are declining, Australia remains relatively
unexplored, particularly for petroleum in frontier offshore areas," Mr
Howard said.
"Encouraging further exploration is a high priority for the
government."
In a major energy speech to the Centre for Economic Development of Australia in
Sydney, Mr Howard said Australia's vast energy reserves would be more and more
important for the nation's economic wellbeing, as well as its international
standing.
"Australia's energy exports are forecast to grow to around $45 billion in
2006-07 more than three times what we earned last year from meat, grains and
wool combined," he said.
"Australia can, and should, supply the domestic and world economies with
low-cost energy.
"Making the most of a comparative advantage in energy is not just in the
national interest.
"It raises global economic welfare as well."
With war in Iraq and the recent problems in the Middle East having a major
impact on petrol prices, Mr Howard said the influence of energy in global
politics was likely to grow further.
"Mans hunger for energy, and all this involves, will profoundly shape
geo-politics this century, perhaps even more so than last century," he
said.
"Energy security concerns are assuming the sort of strategic significance
once reserved for territorial security.
"And the global environmental challenges from energy production and use are
among our most pressing. "
Reforms in the domestic energy sector could also have major economic
implications, Mr Howard said.
"Reforms in the electricity sector alone are expected to add $7 billion to
national GDP over the period from 2005 to 2010," he said.