Former oil and gas industry leaders, including senior executives from BP and Shell, are warning the Albanese government that Australians risk ongoing price shocks and higher costs if it prioritizes fossil fuel development in response to the global energy crisis.
Joint Statement from Former Executives
Sixteen ex-executives and professionals who worked for companies including Woodside, Inpex, Exxon Mobil, and Esso have urged the government to reject calls for fast-tracked gas and coal extraction. They argue that such measures would do nothing to improve the nation's liquid fuel security.
The former leaders highlighted that Australia's limited potential oil reserves, such as the Taroom trough in Queensland, would likely provide less than a year of supply even if fully exploited. They stated, "[They] are not a real solution within any realistic timeframe. The speculative resources spruiked by some would take a decade or more to develop, and provide only a fraction of our energy needs temporarily."
Signatories and Their Concerns
Signatories to the statement included former BP Australia chief executive Greg Bourne, ex-BP vice-president for global projects Russell Smith, and Bernard Wheelahan, a former director of Shell Australia and president of Shell Venezuela. They emphasized that Australia should back policies accelerating renewable energy deployment, modernizing the grid, and supporting large-scale electrification to minimize reliance on oil.
"Every electric vehicle on the road, electric vehicle in a mine, and battery replacing a diesel generator frees up diesel fuel for the rest permanently," they said.
Political Context
The intervention comes as the federal government considers expanding support to ensure fuel supplies in the upcoming budget, while the Coalition and gas lobby call for faster approvals for fossil fuel projects. Prime Minister Anthony Albanese indicated he would not undermine existing gas export contracts by introducing a 25% gas export tax, dismissing the campaign as dishonest and populist.
Risks of Expanding Drilling
The ex-gas and oil leaders warned that expanding drilling and quickly approving new fossil fuel projects in response to the fuel crisis caused by the Iran war "may appear, on the surface, easy options" but risk locking Australia into outdated infrastructure and exposing households to continuing price shocks. They acknowledged that some gas would still be required to firm renewable energy generation but stressed that Australia already has enough to meet future demand.
"Fossil fuel lobbying has slowed the transition from petrostate to electrostate for decades at great cost to Australians. It must not be allowed to happen again," they added.
Echoed by Climate Change Authority Chair
The statement was echoed by Matt Kean, chair of the Climate Change Authority, who told a Committee for Economic Development of Australia event that calls for more drilling during an oil crisis defied logic. "That’s like fixing a gambling debt by going back down the casino. It makes no sense," he said.
