F79/ 49
PRI] ME, MINISTER
FOR PRESS 18 MARCH 1979
ELECTORATE TALK
Governments around the world are wrestling with energy problems.
These problems relate to both the cost and the supply of energy
resources. Events in Iran with resultant disruption in the world's oil
supplies have focussed international attention on these major
issues. Australia is fortunate to have a strong and growing energy
resources base.
We are now about 70% self-sufficient in crude oil; we have
extensive resources of coal suitable for power generation for
industry use and for export; we have substantial reserves of
natural gas; hydro-electric power makes a notable contribution
to cur energy resources and our reserves of uranium rank with
the largest suppliers in the world.
These resources create opportunities for economic development
and for continuing improvement in our standards of living.
However, in an energy short world, we also have an obligation
to make sure we make wise and creative use of our energy resources.
Domestically, we have a firmly established energy policy. We have
encouraged the search for oil and the efficient development and
use of our existing reserves.
There is no choice but for Australia to adopt sensible pricing
pclicies. That difficult decision had to be taken. Our crude
oil pricing policies and taxation and investment incentives have
resuIted in Australia's oil reserves being upgraded by some
600-700 million barrels, approximately a further three years'
supply at current consumption levels.
The growth of oil exploration activity will continue in 1979.
Industry est'. mates that between 83 and something over 140 exploration
wells could be drilled this year. Even the lower end of the
estimate 83 wells would be the best result for seven years.
Esso and BHP alone are committed to investing over $ 1 billion
in exploration and development over th1e next five years as a
result of our energy policies. J2
2
Overall, by 1985, it is estimated that about 30 percent of Australia's
crude oil production will be derived from oil fields which have
become viable as a consequence of our oil and gas policies. This
revival of exploration activity is of vital importance if we are
to maintain a satisfactory level of self-sufficiency in oil into
the 1980' s and beyond.
I recentlv announced that Australia will become a member of the
Inter_-a: ional Energy Agency. This organisation which operates
within the frame-work of the OECD, is a major forum for continuing
consultation and co-operation on energy matters between most of
the industrialised nations.
Australia will obtain a number of benefits from membership of the
lEA. These include participation in long-term co-operation
activities covering energy conservation programmes, joint energy
research, as well as participation in the IEA's emergency oil sharing
scheme. At this stage, oil supplies for the immeditate future are assured,
and our degree of self-sufficiency in crude oil is a valuable
cushion in the current climate.
This self-sufficiency did not just happen. It was the result of
hard work and risk taking by industry and by strong support from
your government.
At the end of three Labor years there was concern that the existing
rates of production from the Bass Strait fields would decline
steadily, leaving us excessively exposed to the world oil market.
Now, as a direct result of our pricing policies, the outlook in coming
years is more favourable.
Extensive drilling and exploration programmes are taking place
off Western Australia. For example, the huge North-West Shelf
prograrmme which could involve expenditure of more than $ 3 000 million
will have been directiy encouraged by our taxation concessions,
incentives, and by our parity pricing policies.
Your government is particularly aware of the special problems
rising energy costs have for primary producers. To cushion the
effects of price rises on fuel users in country areas, the government
has given special help through the petroleum products subsidy
scheme which reducas the price of petrol and other fuels to rural
users.
We are strongly supporting the concept of a national energy
conservation programme concentrating on liquid fuels. We have received
favourabe indications from the States that they would support such
a pr c , rar,= e.
Petroieu, m conservation is important to every Australian. The government
is mindful of its role and our pricing policies are so designed
to help conserve this scarce and finite energy source.
All Australians can play a part too. We can stop and thing about
the day to day habits we can change, and so help our country keep our
obligations in an energy hungry world.