- The Queensland government has said that the Taroom Trough could “play a big role” in securing key oil reserves for the nation.
- Area estimated to hold hundreds of millions of barrels.
- Federal government says it will make the development decisions in its own time.
Federal Resources Minister Madeleine King has played down a Queensland government call to fast-track the development of the potentially world-class Taroom Trough petroleum play right when Australia’s looking to secure oil supplies.
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Rated by industry experts as having similar tendencies to the U.S. shale plays, which helped the U.S. go from being a major importer to a world-leading oil exporter, initial estimates suggest Taroom may hold hundreds of millions of barrels of oil and the potential to supply up to one-quarter of Australia’s fuel needs.
Queensland Premier David Crisafulli is a big fan – as is global oil major Shell. Mr Crisafulli has called on the federal government to assess the Taroom Trough under the National Interest Fast-Track Assessment Pathway, removing delays in bringing masses of new oil production to market.
“Unlocking the Taroom Trough is critical to locking in future national fuel security,” Mr Crisafulli said. “This is about streamlining the process and coordinating the infrastructure needed to get it out of the ground sooner.
“It’s there, now it’s up to all levels of government to get it flowing. Never again should we be left without the ability to generate a domestic fuel supply. This is a generational opportunity to ensure we’re not left at the end of a global supply chain.
“National fuel security is about drilling, refining and storing fuel locally for refuelling family cars, transporting food, and harvesting crops.”
The premier said Queensland is all about unlocking the development of Australia’s first major oil field in 50 years to bolster the nation’s long-term fuel security, with the state streamlining support under a new Taroom Trough Development Plan.
However, Ms King has hit back, saying the pathway to development has a long way to go and final approval will have to come via the federal government. “So really, we need the government, the Queensland government, to work with the federal government to make sure it does happen in a timely way.”
Responding to criticism that her stance is confusing at a time when gas-rich, oil-poor Oz is desperate for new fuel supplies to feed petrol station pumps, Ms King said she was in no way criticising the Queensland government’s enthusiasm
“What we need to do on the EPBC side of things is have state governments and federal governments work together in the shared responsibility of approval,” she said.
“Having said that, nothing will hold back consideration of individual projects as they come forward to the federal government. But they just have to go through a process, and everyone understands that.
“The commercial operators understand that. That order and thoughtfulness around approvals is really important so that the community can have confidence that when we do drill for oil or for gas, we make it safe for the community and the environment.”
Led by local specialists like Santos (ASX:STO), Omega Oil & Gas (ASX:OMA), and Elixir Energy (ASX:EXR) – as well as Shell – exploration has uncovered an unconventional, basin-centred oil and gas play, stretching some 50,000sqkm.
Importantly, the Taroom Trough is located close to key infrastructure and, with the right support, has the potential to add significant barrels in the near term.
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