The Australian Petroleum Production & Exploration Association (APPEA) has stated that the oil and gas industry welcomes Commonwealth budget initiatives supporting delivery of new gas supply into the east coast market.
APPEA Chief Executive Dr Malcolm Roberts stated that APPEA welcomes the Commonwealth’s new $28.7 MM east coast gas development program.
“The only genuine, lasting solution to the tight east coast gas market is more supply,” Roberts commented. “More supply will boost liquidity and competition in the market, putting downward pressure on prices. We have ample resources in Australia to supply domestic and export markets – we should be using those resources.”
Roberts stated that APPEA also welcomes $19.6 MM allocated to the Gas Market Reform Group, accelerating “reforms agreed by the COAG Energy Council to improve gas market efficiency and transparency”, along with “the funding to the Australian Competition and Consumer Commission for regular market monitoring and reporting on the east coast gas market”.
“Progressing these reforms and improving market transparency is vital,” Roberts commented. “APPEA supports monitoring of the market across the industry value chain. We are keen to see the release of the first ACCC report later this year.
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Headline crude prices for the week beginning 12 November 2018 – Brent: US$71/b; WTI: US$60/b
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