PERTH (miningweekly.com) – The Australian Petroleum Production and Exploration Association (Appea) this week said that the Western Australian government had "missed an opportunity" with its resources sector strategy, as it did not acknowledge the critical role that a reliable and affordable supply of energy, particularly that of natural gas, will play in future resource developments.

The state government earlier this week released its Resources Development Strategy, which outlined six priorities and focuses on policy to streamline approval processes and promote investment opportunities, and makes a commitment to continuing to support the Exploration Incentive Scheme.

“While we commend the government’s endeavour to have a strategy, it must be the right strategy. This document falls short. Rather than providing industry with a clear understanding of the government’s priorities for the future, it is instead a collection of already-announced initiatives, most of which relate only to the minerals sector,” Appea Western Australian director Claire Wilkinson said.

“We need a strategy that recognises gas means jobs. We need a strategy that pulls the right levers so gas can continue to mean economic prosperity for our state and a cleaner energy future.”

Wilkinson pointed out that gas already generated over 60% of the electricity produced in Western Australia, and provided much of the power used by some of the biggest businesses and industries such as mines and minerals processing.

“We expect support for such critical areas of Western Australia’s economy to continue in the decades to come.

“In future decades, gas is well placed to support the growth of renewables, development of low emission technologies, and enable new energy sources such as hydrogen, but in some areas the policy settings are continuing to drag on Western Australia’s investment competitiveness where capital is needed to bring new gas supplies to market.

“It is a missed opportunity that the strategy does not focus on the future. Western Australia cannot rest on its successes of the past and must strive to have in place the right policy frameworks to attract investment and develop new supplies of affordable and reliable natural gas to underpin the rest of the Western Australian economy.”

Appea has called for efficient regulatory processes between different state government agencies to reduce duplication, and regulatory changes to enable low emission technologies such as greenhouse-gas storage and hydrogen to be undertaken in Western Australia.

Wilkinson said these changes were vital as natural gas was also important in helping lower Australia’s, and indeed the world’s, emissions and in supporting the growth of renewable energy.

“There is an immense opportunity for Western Australia to not only create jobs and grow our economy but to provide cleaner energy to the world,” she said.

“The Australian government estimates our exports have the potential to lower emissions in liquefied natural gas- importing countries by about 170-million tonnes of carbon dioxide equivalents a year by providing an alternative to higher emissions fuels. That equates to almost a third of Australia’s total annual emissions.

“This has had material impacts on exploration programmes where haydraulic fracturing is required, with companies delaying their work programmes while awaiting details of the regulations under which their activities will be assessed.

“These delays are costing the economy and costing jobs and reduce the attractiveness of Western Australia as a place to invest when capital can easily find opportunities in other countries where costs are cheaper.”