Thanks, Samantha [McCulloch, AEP chief executive], for that introduction.

I acknowledge the Turrbal and Jagera people – the traditional custodians of the lands we are gathered on today – and pay my respects to their elders past and present.

I extend that respect to First Nations People in the audience today.

Thank you, Shannon [Ruska], for your warm Welcome to Country. 

I would also like to give a very special acknowledgment to the new Assistant Minister for Resources Anthony Chisholm who is here today. 

I was thrilled when Senator Chisholm was appointed to the portfolio, particularly given the huge contribution Queensland makes to the resources industry. 

I would also like to acknowledge:

• Meg O’Neill, AEP Chair and CEO of Woodside
• the virtual presence of the Hon Joe Hockey, our former ambassador to Washington, and 
• other distinguished guest and speakers here today.

It is important to acknowledge the contribution of the oil and gas industry to Australia’s economic development, and to powering Australian cities, towns, industry and homes.

Energy exports from Australia play a globally significant role in ensuring that our regional neighbours enjoy energy security and can pursue their pathways to net zero and decarbonisation. 

Every Australian receives a dividend from our energy exports – and that very important dividend is regional stability. 

It is simply not possible to overestimate the critical importance of regional stability.  

It is very much in our national interest.   

It is a great honour to be once again addressing you as a proud member of a re-elected Albanese Labor Government. 

It is a privilege to be reappointed as Australia’s Minister for Resources, and I look forward to continuing to work with each of you over the course of the next three years.

While I am solidly focussed on implementation of existing policy and looking towards the future, for the sake of our international visitors, I don’t intend to spend much time dwelling on the recent Australian election campaign.

It was an important election and one that demonstrated the breadth of support of the Australian community for the Albanese Labor Government’s approach to a wide range of policies.

Gas policy was put front and centre by the then Leader of the Opposition, but perhaps not in the way industry expected.  

In any event, this foray - as underdone as it was - shows how important gas policy is.

The industry, the energy and the feedstock it provides, is too important to the nation and the region to be little more than a thought bubble offered on the eve of an election.

As those in this room who have dealt with me know, I have always taken the approach of developing policy changes in a methodical and considered way, with extensive industry consultation. 

This approach will continue in my second term as Resources Minister.

Three years in review

To understand where we are today and our future plans, we should go back three years to when the Albanese Government first came to office. 

The Morrison Government had left us with the risk of an acute east coast gas shortage. 

On the day I was sworn in – 1 June 2022 -  I was calling gas companies to ask them to help prevent a forecast 56 PJ shortfall in the east coast market.

At this time, producer offers of gas supply were hovering around $30 a gigajoule having jumped up from $10. 

This seemed like a steep jump, but little did we know, prices were yet to reach their peak.

Prices for homes and businesses on the east coast were high, while Australian gas was fetching record prices on overseas markets. 

Australian families and businesses were rightly questioning how a nation with so much gas could be facing gas shortages. 

There was of course Russia’s full-scale invasion of Ukraine affecting the international market. 

We really had only one tool available to us – the so-called gas trigger – the Australian Domestic Gas Security Mechanism.

But the ADGSM was not fit for purpose. 

And it was scheduled to expire at the end of that year. 

We immediately set about reforming the ADGSM so that it could be triggered more responsively, if needed. 

We also renegotiated the Heads of Agreement with east coast LNG producers, committing them to offering uncontracted gas to domestic customers ahead of exports.

But rocketing prices had to be dealt with and so we introduced the Emergency Price Order on 23 December 2022.

For the first time, and Australian Government capped the price of gas in this country.

…Gas, a commodity we have in abundance.

Why was such drastic action required? Because in between May 2022 and December 2022, producer offers of domestic supply hit $70 a gigajoule.

This was simply not sustainable.

Some Australian businesses were facing closure. Households were suffering.

And it triggered another six months of work that saw the Mandatory Gas Code introduced in July 2023. 

By this time, prices had come down from their peak, settling at around $20 a gigajoule– still high. And higher than what industrial users had been used to.

But importantly, more natural gas was now flowing into the east coast market.

In all, the Government has secured up to 644 petajoules of gas supply for the domestic market in legally enforceable commitments through the Gas Market Code. 

Looking to the future

I know there is much more to do. 

And there must be a better way to do it.

It is as clear as day to anyone who cares to listen, that Australians are tired of seeing our vast gas resources exported overseas while simultaneously paying some of the highest gas prices in the developed world here at home. 

Australians recognise this to be unfair. 

Let me be clear: many in your industry are right now doing the heavy lifting to keep the southern markets well supplied and I thank them for that. 

Most recently, with the ACCC forecasting a tight supply situation in the southern market for the Winter months, the east coast LNG exporters stepped up with an extra 9PJ of supply options.

But there remains a lot of work to do to ensure the domestic market remains well supplied. 

Investment

I have heard your message that environmental approvals are complex and lengthy. Addressing this issue is a priority of government.

But I also say this: commercial decisions and joint venture negotiations are also complex and lengthy. And subject to change.

Not all delays can be attributed to Government regulation. 

So, this is my message to you today - a well-supplied domestic gas market at a reasonable price is fundamental to the social licence of this industry to operate. 

A well supplied domestic gas market at a reasonable price is also fundamental to the Albanese Government’s Building Australia’s Future agenda. 

The Albanese Government will continue to strive toward more affordable gas and a well-supplied market, but we simply cannot do it without the constructive participation of industry. 

We need to work together, pulling in the same direction. 

Forceful advocacy is one thing, and I guess it has a place, but effective advocacy should surely be the primary objective of industry?

Albanese Government second term objectives - implementation

One of the Albanese Government’s main objectives for this second term is to leverage this country’s energy resources to drive productivity and deliver practical outcomes for all Australians.

Our ambitious Building Australia’s Future agenda will very much include implementation of the Future Gas Strategy.

As many will recall, the Strategy strongly acknowledges the ongoing role of gas in the energy transition. 

To paraphrase the Prime Minister: You can't have renewables unless you have firming capacity. You can't get a transition through warm thoughts.

The Albanese Labor Government is the first to seek to define the role gas will play to support renewable power, electrification and net zero goals here and across the region. 

Future Gas Strategy/implementation

The Future Gas Strategy lays out our approach to meeting future domestic and regional gas needs.

The Strategy is delivering greater certainty for industry and enabling pragmatic, sensible outcomes.

Australian LNG exports to the Indo-Pacific region support and sustain millions of households and businesses. It provides that all important regional stability I referred to earlier.

Our focus is on ensuring we get to net zero without putting living standards at risk and jeopardising affordable, reliable energy.

Significant work has already been undertaken to deliver on priority actions outlined in the Strategy.

My department is consulting on changes to retention lease policies to encourage more timely development of existing gas discoveries. 

We are working with regulators and industry to reduce and, where possible, eliminate gas venting and flaring.

We are also reframing future Commonwealth offshore petroleum acreage releases to enhance exploration.

As planned, we are also about to review the ADGSM, Heads of Agreement, and Gas Market Code to make sure they’re delivering as intended.

The review will examine the role of market bodies in the system.

The various parts of the current policy settings have emerged over successive governments and in response to crises of supply or prices, or both.

I will say publicly what I have said privately to industry – the review we are about the undertake is an opportunity to achieve important reforms in the national gas system.

• to drive sustainable investment
• to improve supply
• to put downward pressure on prices and enable our manufacturing industry.

The review will be open to the public, and we want stakeholders to make their views known to us…not that anyone has been backward in coming forward!

But to achieve all these things we must work together constructively.

I think there is a case to be made for industry and industry groups turning their consultancy spends to practical policy responses instead of simplistic CEO surveys.

Regulatory approvals

An improved approvals process is a key focus for this Government. 

We must effectively balance environmental and social impacts with the best interests of households, businesses and the wider energy industry.

I want to echo Environment Minister Murray Watt in saying we are committed to legislation that protects the environment and delivers more certainty for industry and stakeholders.

The decisions we make will be transparent and in accordance with the law.

And they will follow community consultations that are thorough and meaningful.

That includes any proposed changes to the offshore environment regulations.

My department is preparing a package of reforms to clarify the expectations of companies when they undertake consultation.  

I want a more workable set of rules, and a system of consultation that works for everybody.

Conclusion

Australia’s natural advantages in energy and resources will drive the success of our commitment to Build Australia’s Future.

It is important we get the frameworks right to spur exploration, investment and the development of our oil and gas reserves. The Government is committed to this process.

In my view, the Australian gas industry should pay careful attention to public concern of rising gas prices and supply gaps.

We cannot expect everyone to understand the complexity of the gas supply system in Australia. 

But we can all absolutely recognise how consumers and manufacturers react when their bills go up. 

I look forward to your help over the next three years to meet the national challenges that lie ahead of us while positioning us to grab any new opportunities that arise.

Enjoy the conference.

Thank you.