Melissa Parke (Fremantle, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Resources and Energy and the Minister for Tourism. Will the minister update the House on the status of the Montara oil spill?

Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Link to this | Hansard source

I thank the member for Fremantle for her question on the status of the Montara oil and gas leak. In doing so, I would also join with her in welcoming the Prime Minister’s announcements today with respect to further long-term LNG contracts by Chevron. These contracts are potentially worth $70 billion over 20 years to Osaka Gas and Tokyo Gas, in Japan, and GS Caltex, in South Korea and hopefully will further assist in a final decision by the Gorgon joint venture. In doing so, I remind the House not only of the economic importance of the LNG industry to Australia but also of the environmental importance to the industry internationally. One should not forget that for every tonne of CO2 emitted in Australia during production, LNG saves four tonnes of CO2 when it is consumed in Japan and nine tonnes when it is consumed in China.

For those reasons—both environmental and economic—we as a nation have a huge responsibility to make sure that the petroleum industry in Australia operates in the best terms regarding health, practice and environmental considerations. I can advise the House that AMSA has indicated there has been a general reduction in the number and size of slick patches observed. The report indicates that fewer patches are being sighted from vessels, with only a very small amount of dispersant having been required yesterday. It is also interesting to note—contrary to suggestions from the Greens—that the oil slick and sheen are approximately 170 kilometres, or 90 nautical miles, from the mainland. More importantly, in terms of our capacity to actually shut in the leaking well, the Montara well operator, PTTEP, today advised that the West Triton rig—which has been brought from Indonesia to shut in the leaking well and then stop the flow of oil and gas—is scheduled to arrive at the Montara field at midnight this evening. From an environmental point of view, wildlife experts and environmental personnel are conducting surveys and wildlife monitoring of Ashmore Reef and the East and West Middle Islands. The latest report available to me indicates no oil-affected wildlife and no evidence of contamination in the area, which is pleasing to all in the House.

As I have previously advised the House, this is a major incident but we should not forget that this is the first world blow-out in offshore oil and gas in Australia since 1984, and around 1,500 wells have been driven safely over the past 25 years. However, we also accept that there is no room for complacency. The oil and gas industry—as confirmed by the Prime Minister today—is one of the engine rooms of growth in Australia and the key to critical investment and job creation as we come out of this global financial crisis.

This is also about energy security for Australia in the 21st century as we move toward a lower emissions economy. But we should also never forget that the nature of the industry is hazardous to the people and the environment when things go wrong. It is for that reason that all members of the House have taken the status of the Montara oil and gas leak seriously. We understand that the Australian community rightly expects no less from all of us. I therefore extend my appreciation to the opposition and especially to the member for Groom, for assisting me and facilitating an amendment to the Offshore Petroleum and Greenhouse Gas Storage Act 2006, which will provide the minister with a broad ranging major incident investigation power. That amendment passed the House yesterday, and we now look forward to support from the Senate so as to enable the minister to have the appropriate regulatory capacity to conduct an investigation once we have completed shutting in the well and stopping the flow of oil and gas.

Clearly, there is a need for a regulatory review power and consideration of a properly resourced investigative capacity from the Australian government. However, we also understand that this is an unfortunate incident. I remind the House that right now our top priorities are: firstly, to respond to the oil spill and minimise harm to the environment; and, secondly—and importantly—to shut in the leaking well and stop the flow of oil and gas safely and as soon as possible. I extend my appreciation to the House for the assistance in amending the bill to ensure that we have all regulatory capacity to do the right thing by the Australian community.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Mr Speaker, I ask that further questions be placed on the Notice Paper.