Energy green paper recommends getting more gas out of the ground

​The federal government has released its green paper on energy and has highlighted the need to increase gas supply.

The
federal government has released its green paper on energy and has highlighted
the need to increase gas supply.

Fairfax notes that restrictions on onshore gas drilling in NSW and Victoria were
criticised in the report, released at the International Mining and Resources
Conference in Melbourne yesterday.

The states were, “creating
potential near-term supply shortages on the east coast, and also increasing
prices” the green paper claimed.

“We welcome initiatives outlined in the Paper to increase gas
production and reform gas markets so that they are more productive, competitive
and transparent, said Innes Willox from the Australian Industry Group.

The
problem is particularly severe in NSW, which produces only 5 per cent of the
gas it uses.

Willox
said that getting NSW and Victoria on board for reform was vital and needed
immediately.

“Blanket bans and moratoriums that are stifling unconventional
gas production in NSW and Victoria should be replaced by credible science-based
regulation,” he said in a statement.

The green paper’s policy goals around gas included bringing new supply
online “as quickly as possible” and creating a more transparent local market.