From the explanatory memo: 'The Commonwealth would then have the right to pass on their rights to the reserve to a State or Territory of Australia.'
The bill should be supported because it aims to secure Australia's energy independence by ensuring a steady domestic supply of natural gas and hydrocarbons. This is particularly important for national energy security and reducing reliance on international markets [Judgment]. By prioritizing domestic energy needs, the bill can help stabilize local energy prices and protect consumers from global market fluctuations. Additionally, ensuring a domestic reserve aligns with national interests and can enhance Australia's strategic autonomy in energy resources.
The bill should be opposed because it imposes restrictive obligations on petroleum companies, potentially discouraging investment in the sector. The requirement to reserve a portion of exports for domestic use could reduce the profitability of Australian operations, making them less attractive compared to international opportunities [Judgment]. This could lead to a decrease in overall production and export volumes, negatively impacting the broader economy. Furthermore, the bill may inadvertently lead to increased regulatory complexity and compliance costs for businesses.
2023-09-05
Before Senate
HANSON, Sen Pauline
Unspecified
Energy Policy, National Security, Industrial Policy