Bight has ‘strong potential’ for nation’s fuel security, says Resources Minister Keith Pitt

The Great Australian Bight has “strong potential” as a fuel source for the nation says Resources Minister Keith Pitt, as the Federal Government seeks to bolster its sovereign capability through the COVID-19 pandemic.

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Resources Minister Keith Pitt says the Great Australian Bight has “strong potential” as a fuel source for the nation, as the Federal Government seeks to bolster its sovereign capability beyond the COVID-19 pandemic.

As Australia investigates its fuel security, the competition watchdog this month authorised petroleum industry suppliers to co-operate to ensure fuel is available for business and consumers.

The Advertiser last week revealed South Australia could play a key role in the growth of an advanced manufacturing sector following heightened shortage risks of medical and personal protective equipment during the pandemic.

Resources Minister Keith Pitt speaks during Question Time in February. Picture: AAP Image/Lukas Coch

But off the coast, a contentious resource remains untouched, after Norwegian company Equinor in February abandoned its plan for oil exploration in the region.

“We know the Great Australian Bight has strong potential as a source of fuel and I would encourage and welcome any resources company considering exploring the region,” Mr Pitt said.

“However, as we saw through the Equinor experience it is a major investment decision that does not come without financial risk that any company must take into account.

“I would hope that when market conditions improve it will entice Equinor, or another resources company, to consider exploring the potentials of The Bight.”

Labor resources spokesman Joel Fitzgibbon said more investment in exploration was needed, but the Government needed to deal with the rise of environmental activists.

The Great Australian Bight, one of the longest sea cliffs in the world.

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Australia had 78 of 90 days of oil stocks agreed to with the International Energy Agency at the end of January.

But an arrangement with the US is expected to build up emergency petroleum reserves, Energy Minister Angus Taylor last week told a special G20 energy ministers meeting.

Australian Petroleum Production and Exploration Association chief executive Andrew McConville said the oil and gas industry was committed to developing new energy resources, and supported the government’s energy security push.

“The decline in the oil price over recent months makes this challenging, but our core point is, we need more exploration,” he said.

Opposition energy spokesman Mark Butler called for a clear Government plan that explains how Australia will safeguard and modernise its existing refining capacity, especially as refiners face the impacts of the current pandemic.