THE VIRTUOUS LIFE CYCLE FOR EXPLORATION AND PRODUCTION—LEAD AND LAG FACTORS

Abstract

‘High-trust societies fare better than low-trust societies,’— Francis Fukuyama.1

Trusted land access is both the first factor and the final outcome of a virtuous exploration and production life cycle. Key leading factors in the stewardship of trusted land access and a virtuous life cycle for exploration and production in South Australia include:

evolutionary, best practice, objective-based legislation;

transparent statements of environmental objectives (SEOs) that enable regulators to provide a one-stopshop for approvals and avoid capture;

administrative arrangements between government agencies to foster expeditious co-regulatory work-flows;

conjunctive native title land access agreements that are fair and sustainable in relation to development;

prioritised, pre-competitive studies that reduce critical uncertainties; and,

highly motivated government officers focussed on building trust and reducing uncertainties, so both the community and investors sustain positive expectations for outcomes from exploration and production investment.

This paper characterises the South Australian Government’s roles and measures for success in the virtuous life cycle for petroleum and geothermal resource investment. The critical importance of local, leading actions will be demonstrated with examples, including: proposed enhancements to South Australia’s Petroleum Act 2000; streamlined but stringent project approvals; progressive achievements in native title land access agreements; the evolution of Australia’s geothermal energy sector; and, perception moulding research in the Cooper, Otway and Officer basins.