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Opening 10 new oil and gas sites is a win for fossil fuel companies, a staggering loss for Australia

Pluto LNG facility on the Burrup Peninsula in Western Australia. Photo: Oil & Gas Today

Federal resources minister Madeleine King handed Australia鈥檚 fossil fuel industry two significant wins on August 24.

The minister announced oil and gas exploration will be allowed at 10 new Australian ocean sites 鈥 comprising almost 47,000 square kilometres. She  two new offshore greenhouse gas storage areas off Western Australia and the Northern Territory, to explore the potential of 鈥渃arbon capture and storage鈥 (CCS) technology.

The  the new oil and gas permits will bolster energy security in Australia and beyond, and ultimately aid the transition to renewables. King also said controversial carbon-capture and storage was necessary to meet Australia鈥檚 net-zero emissions targets.

The world鈥檚 energy market is going through a period of disruption, largely due to Russian sanctions and the Ukrainian war. But expanding carbon-intensive fossil fuel projects is flawed reasoning that will lead to greater global insecurity.

 shows 90% of coal and 60% of oil and gas reserves must stay in the ground if we鈥檙e to have half a chance of limiting global warming to 1.5鈩 this century.

Ignoring the facts

The new sites for offshore gas and oil exploration  ten areas off the coasts of the NT, WA, Victoria and the Ashmore and Cartier Islands.

King鈥檚 announcement came at a resources conference in Darwin, where she said: 鈥淕as enables greater use of renewables domestically by providing energy security. Australian [liquefied natural gas] is also a force for regional energy security and helps our trading partners meet their own decarbonisation goals.鈥

The problem with this assessment is that it ignores two things.

First, Australia exports nearly 90% of domestically produced gas and lacks robust  to moderate this. Without these controls, increasing domestic production will not improve Australia鈥檚 energy security.

Second, gas can only enable greater use of renewables domestically and provide energy security where it is 鈥渄ecarbonised鈥 through the use of CCS. If it isn鈥檛 decarbonised, using gas undermines energy security by risking further global warming.

However, the deployment of CCS technology is complex, expensive and faces many barriers. To date it has  over-promising and under-delivering.

CCS typically involves capturing carbon dioxide at the source (such as a coal-fired power station), sending it to a remote location and storing it underground.

Offshore CCS involves injecting and storing CO2 in suitable rock formations. Doing so safely requires robust monitoring and verification, but challenging ocean conditions can make this extremely difficult.

For example, Chevron  to capture and store CO2 at its huge offshore Gorgon gas project, after the WA government approved the project on the condition the company sequester 80% of the project鈥檚 emissions in its first five years.

A  suggested the project emitted 16 million tonnes more than anticipated due to injection failure. King calls CCS a 鈥溾 technology, but Chevron鈥檚 experience indicates this is far from the case.

King  the federal government won鈥檛 rely entirely on CCS, adding 鈥渋t鈥檚 one of the many means of getting to net-zero鈥 and renewable energy remained central to Australia鈥檚 emissions reduction efforts.

But  the technology a 鈥渟mokescreen鈥 behind which fossil fuel companies can continue to pollute.

Fossil fuels are not the future

Putting gas in competition with renewable energy will end badly for the fossil fuel industry. As the renewable energy market share expands, fossil fuels will become  due to their environmental impacts and higher costs.

Eventually, natural gas will be  during periods of peak demand or when wind and solar are not producing electricity 鈥 in other words, when the sun isn鈥檛 shining and the wind isn鈥檛 blowing. It will not provide the steady, constant electricity supply that makes up our  system. This reality will significantly reduce gas demand and negate the need for CCS.

Opening up new gas and oil exploration is a reactive and dangerous move that does not support Australia鈥檚 long-term energy future. Many of our international peers already acknowledge this.

Britain, for example, now  of its electricity from renewable sources such as onshore and offshore wind, solar and biomass. The subsequent decline of fossil fuels means the UK has reduced its greenhouse gas emissions by more than 50% on 1990 levels.

 is valuable for its ability to provide rapid, flexible power supply during peak periods, to integrate with other renewable technologies and to improve system flexibility. During periods of high demand, storage devices can discharge into the grid and maintain security of supply.

Wrong way, go back

Clearly Australia is heading in the wrong direction by opening up new fossil fuel exploration.

The move will damage our longer-term security and undermine our climate imperatives. It ignores the glaring economic realities that will eventually push gas out of the market.

And opening new gas fields while CCS remains uncertain is dangerous for the planet.

[ is a Deakin Law School Professor at Deakin University. This article was first published at .]

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