Peter Dutton’s blast over Labor gas policies sparks war

Peter Dutton has pledged to reverse the PM’s sweeping market and regulatory interventions in the oil and gas sector.

Opposition Laeder Peter Dutton will warn oil and gas executives that ‘we’re witnessing one of the most interventionist governments in our nation’s history’. Picture: NCA NewsWire / Martin Ollman

Peter Dutton will reverse ­Anthony Albanese’s sweeping market and regulatory interventions in the oil and gas sector, and rally resources companies to “fight” alongside the Coalition against energy policies driven by Labor’s “renewable zealotry”.

Amid emerging rifts between cabinet ministers over the role of carbon capture and storage (CCS) ­technologies in cutting emissions across the resources sector, the Opposition Leader on ­Thursday has invoked former US president Ronald Reagan and pledged to wind back government interventions.

Speaking by videolink to the Australian Petroleum Production & Exploration conference in Adelaide, Mr Dutton warned oil and gas executives that “we’re witnessing one of the most interventionist governments in our nation’s history”. With energy and competition regulators warning of severe gas shortages and blackouts, Mr Dutton accused the government of being “deeply sceptical of the free market, of individual enterprise and autonomy”.

“Labor sees businesses and ­industry as instruments of the state,” Mr Dutton said.

“It wants to use the chains and whips of regulation and tax to control and cannibalise the private sector. Nowhere is this more visible than in energy policy and its interference in the gas industry.

“Anthony Albanese and Chris Bowen will say publicly that they’re behind the gas industry. But of course, their actions betray their words. Labor wants gas gone. The government’s not on your side – let’s be very clear about it.”

Mr Dutton’s broadside against Labor policies comes as Industry Minister Ed Husic and Resources Minister Madeleine King clash over the viability of CCS technologies in reducing emissions across oil, gas and mining sectors.

After Mr Husic on Wednesday cast doubt over whether CCS would effectively slash emissions, Ms King told The Australian it was a “proven technology” and crucial in achieving net-zero emissions by 2050.

Ms King – who will announce on Thursday $50m in grants to accelerate the development of new critical minerals projects in Western Australia, NSW and Queensland – said the government was committed to examining opportunities providing regulatory and administrative ­certainty for CCS across industries.

“The Albanese government announced $12m in the 2023-24 budget to review the environmental management regime for offshore petroleum and greenhouse gas storage activities to ensure it is fit-for-purpose for a decarbonising economy,” Ms King said.

“(CCS) is an important part of getting to net zero and we are focused on making sure projects that are commercial have regulatory certainty so they can get on with it. The (International Energy Agency) notes that around the world, deployed CCS has the capacity to sequester up to 45 million tonnes of carbon dioxide on an annual basis.”

Mr Husic earlier said that CCS had not shown that it was able to “work at scale” and the government should prioritise investments in wind and solar to “give us the best bang for buck”.

With major trading partners Japan and South Korea raising concerns about Labor’s crackdown on the oil and gas sector, APPEA is preparing a national ­advertising blitz pushing back against the government’s market and regulatory interventions.

Mr Dutton attacked Labor’s gas price caps, reduced funding for gas exploration and projects, additional support for activists waging lawfare, mandatory code of conduct, higher taxes on gas companies, radical industrial relations laws and the safeguard mechanism imposing climate ­targets on heavy industry.

He warned that Labor policies are pushing up prices and businesses will have no choice but to pass costs on to consumers or “pack up shop and move offshore where it’s cheaper to operate”.

“In such cases, there won’t be any environmental benefit,” he said. “In fact, there will be more emissions into the air. All this carbon tax will do is damage our own economy and have a de-­industrialising effect.”

Mr Dutton explained how Reagan managed the oil crisis in 1981 by decontrolling the price of domestic oil and stopped the government from “putting ceilings on its pricing and production”.

“He did these things despite all the scare tactics and dire warnings,” Mr Dutton said.

“Five years later, Reagan spoke about the success of these policies. He let ‘freedom solve the problem through the magic of the marketplace’ – as he said. That episode in US history is an important lesson about the perils of government intervention. It’s a lesson ignored by the Australian government in 2023.”

The warning on prices and emissions comes after Mr Dutton used his budget reply speech to ramp up pressure on Labor for small modular nuclear reactors to be included in the energy mix as part of the transition to net zero.

Mr Dutton urged oil and gas producers to “fight for yourselves” and make the case against policy decisions.

“We need you to speak up frankly and more avidly,” he said. “And to have a discussion with the Australian public just outlining the facts. I know it can be difficult, I understand why, particularly in an age of social media, where companies have absented themselves from the public debate … But if you don’t speak up now, I think it’s just going to put the sector at even more risk. It’s our country’s future prosperity that we’re talking about.”

After business groups last week lashed Jim Chalmers’ budget for failing to include measures to boost productivity and more investment incentives, Mr Dutton described Labor’s energy policy as being “driven by renewable zealotry”.

“It’s doing everything possible to shut down coal and frustrate the gas sector,” he said. “We understand that you need to balance commercial viability with national environmental goals. Yet Labor’s new carbon tax (safeguard mechanism) will force businesses and industries to meet aggressive emissions reduction targets or pay hefty fines. And for many, by design, this tax will be financially crippling.”

Mr Dutton warned oil and gas companies that the “worst is yet to come”, with the government preparing a shake-up of the Environment Protection and Biodiversity Conservation Act.

“We all want to protect and improve our environment,” he said.

“But we also have an obligation to promote the longevity of Australian industries and businesses which underpin our economic prosperity.”