Offshore drilling a national priority: Matt Canavan

For us not to have to rely on global markets, we must encourage offshore oil exploration, says Matt Canavan.

Resource Minister Matt Canavan at Parliament House in Canberra. Picture: AAP.

Resources Minister Matt Canavan says it is a “national priority” to encourage offshore oil exploration — including in the Great Australian Bight — so Australia can be self-reliant on petrol ­supply and not have to rely on volatile global markets.

With the government facing pressure from the rising price of fuel, Senator Canavan said Australia should follow the path of the US and become self-­sufficient in oil.

He said the government wanted to attract investment to explore potential oil supply in the Great Australian Bight, which he said was “the most prospective frontier oil basin in the world”.

The Nationals senator said it was problematic that Australia imported most of its petrol from nations in the Organisation of the Petroleum Exporting Countries, which the competition watchdog had labelled a cartel.

He said it was a national sec­urity issue as well as about petrol pricing, noting Australia used to be nearly self-sufficient in oil ­before production in the Bass Straight declined 15 years ago.

“The absolute priority of the commonwealth is to get investment in our oil and gas offshore basins,” Senator Canavan said.

“America has shown the way; the US has broken the nexus of OPEC controlling the oil security of the US and they have done so by the development of shale oil and gas.”

Senator Canavan said the government had encouraged dev­elopment of the Beetaloo Basin in the Northern Territory and there were long-term opportunities in the Great Australian Bight off South Australia.

“You have a bunch of activists running around saying we shouldn’t explore in the Great Australian Bight,” he said.

“If we let these activists win, that would confine Australians to be dependent on overseas oil prices — not something … in the long-term interests of Australia.”

He said the government was trying to facilitate an investment partner for Norwegian oil company Equinor, which plans to drill for oil in basins off South Australia: “There is a lot more exploration needed before it can be converted into a commer­cially producing opportunity.”

Australian Competition & Consumer Commission chairman Rod Sims told The Australian on Tuesday that little could be done to reduce petrol prices, despite Scott Morrison urging the watchdog to crack down on the sector and threatening fuel retailers with a “big stick” unless they gave motorists a better deal.

Mr Sims said there was no evidence petrol companies were gouging consumers, saying they were better behaved than electricity retailers and in a more competitive market.

“The fundamental problem has been the OPEC cartel,” he said. “You have this massive ­increased price in crude oil, and the exchange rate … driving what is going on.”

Bill Shorten yesterday joined the Prime Minister in blaming petrol companies for rising bowser prices, in contradiction of Mr Sims.

“We think the key issue is the petrol companies themselves,” the Opposition Leader said.