Election 2022: Santos CEO Kevin Gallagher warns of ‘knee-jerk’ fear

Energy boss Kevin Gallagher is worried about ‘kneejerk’ reactions from the winner of Saturday’s federal election.

Santos boss Kevin Gallagher has raised concern over a ‘knee-jerk’ reaction to the energy industry from the winner of a federal election on Saturday.

Santos chief executive Kevin Gallagher has warned the winner of Saturday’s election against “knee-jerk reactions” or a Joe Biden-style clampdown on the energy industry as concern grows over a minority government or hung parliament.

The company, one of Australia’s biggest oil and gas producers with billions of dollars of fossil fuel projects in the planning stages, sounded caution just three days out from the federal poll.

“My request is no knee-jerk reactions and there’s no big Biden-style policy announcements on day one, closing things down, because I think that would be very disruptive,” Mr Galla­gher told the Australian ­Petroleum Production & Exploration Association conference on Wednesday. “That would not help with the energy transition.”

Mr Biden introduced a ban on new oil and gas leases in the US after being elected as part of a more ambitious climate agenda than his predecessor, Donald Trump. A potential hike in US oil and gas royalties to reflect higher climate costs was also under consideration.

Cooper Energy managing ­director David Maxwell, a member of APPEA’s board, told The Australian he was worried about political uncertainty.

“My concern is not so much about a minority government per se, but it’s just the period of instability that you have before it settles down and gets going again,” Mr Maxwell said.

“What society doesn’t like is uncertainty. So if that’s the space we end up in I hope it is short lived and there’s clarity about how it’s going to work.

“When there’s uncertainty, people leave their hands in their pockets, they don’t spend money … because they’re sitting there waiting to see what the rules are.”

The International Association of Oil & Gas Producers said the industry must make sure it avoids “stupid” policies.

“We need that balanced voice at the table so that we don’t get insensitive and sometimes, to be honest, plain stupid policies being put forward that will in the end actually harm society,” IOGP executive director Iman Hill said.

While both major parties have a net-zero emissions by 2050 goal, Labor plans to lower Australia’s emissions by 43 per cent of 2005 levels by 2030 while the Coalition has pledged to cut emissions by 26 to 28 per cent by the end of this decade.

Asked if he was concerned that Labor’s more ambitious climate pledge could disrupt the energy industry, Mr Galla­gher said: “There are a range of outcomes, but I think there’s a ­reality of the energy environment we’re in and energy security is going to be important no matter who is in power. The revenues are required, the jobs that are supported for the industry are all very important factors.

“Whoever gets into politics has to work on getting alignment across all sectors of politics and take a long-term view on energy policy with the goal of net zero by 2050.”

Ahead of the federal election on Saturday, the Australian Petroleum Production and Exploration Association said on Tuesday it was wary of any change in political rhetoric given the $500bn investment the ­industry has provided to the economy.