WATTLE Range Council has condemned Australia’s offshore petroleum regulator for granting an exploration licence in the Great Australian Bight, saying the economic benefit of drilling will be “minimal”.
In a letter to the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), council chief executive Ben Gower opposed exploration in the Bight, citing a “relatively simple but logical” cost benefit analysis.
Mr Gower said the risk of an environmental catastrophe as a result of oil and gas exploration was unacceptable when compared to the economic benefits any drilling activity would provide.
“While it is understood the likelihood of an industrial accident may be remote, the consequences to our immediate coastline and dependencies we have on it would be catastrophic,” council’s letter states.
“It is this council’s understanding that most of the infrastructure, technology and labour for this project will be important from overseas and any product that is extracted is likely to be processed overseas and that any future profits associated with this project are likely to flow overseas,” the NOPSEMA letter states.
Mr Gower urged the independent regulator to take council’s position into consideration when considering future exploration in the Great Australian Bight.
Council’s comments are in contradiction with the Australian Petroleum Production Exploration Association, who have said the prospects of a successful development offshore “could bring significant economic and energy benefits for the state and the nation.”
A report commissioned by the nation’s peak body representing oil and gas exploration and production found successful exploration in the Bight could create more than 2000 jobs in South Australia.
It also determined the project could generate more than $7b in average tax revenue to Federal and State Governments over the next four decades.
Last month, council wrote to NOPSEMA, Federal Energy Minister Angus Taylor, State Energy and Mining Minister Dan van Holst Pellekaan and Shadow Energy Minister Tom Koutsantonis to formally advise of its opposition to oil and gas exploration in the Bight.
In a response, Mr van Holst Pellekaan said the State Government was confident strict regulatory oversight and scrutiny would be applied through NOPSEMA’s approval process.
Limestone Coast Protection Alliance chair Angus Ralton congratulated council’s “strong stance” against the prospective exploration.
“It is fantastic to see Wattle Range Council is protecting the economy and environment of the South East,” he said.
“We would urge the Naracoorte Lucindale, Tatiara and Mount Gambier City councils to join with Robe, Kingston, Grant and Wattle Range in condemning this proposal.
“We are hoping this issue will be raised as a motion at the Limestone Coast Local Government Association meeting this week and the councils adopt the stance reflecting the concerns of the stakeholders in the South East.”
Mr Ralton urged State and Federal parliamentarians to condemn the idea.