ENVIRONMENTALLY SUSTAINABLE ENERGY FOR THE EAST ASIA/PACIFIC REGION: IMPLICATIONS AND OPPORTUNITIES FOR AUSTRALIAN OIL AND GAS EXPLORERS AND PRODUCERS

Abstract

The oil and gas reserves of Australia and the East Asian region fall well short of the region's long-term requirements, even for a scenario that phases out all fossil fuels by the end of the 21st century. There is, therefore, no contradiction between vigorous exploration for oil and gas and the process of transition to renewable energy sources. However, to be an independent player in environmental policy-making, the Australian petroleum exploration industry should focus on its particular role within the energy sector as a whole, whose nature will change radically over the next several decades. This role will combine concerns over long term oil supply security with, in particular, the objective of reducing greenhouse gas emissions from oil and gas consumption to levels commensurate with Australia's international obligations. The role extends to Australian involvement in the region as a whole through the accrual of emissions credits from projects implemented jointly with developing countries. It also envisages that Australian explorers, especially those focussed on gas, will form alliances with downstream companies, power generators, appliance manufacturers and energy marketers as links in an integrated chain of operations with value added and emissions reduced at each stage. This re-orientation should lead the industry to question the extent to which its interests correspond with those of the coal and mineral industries, which do not face the same resource limitations.