NSW to Introduce Legislation to Ban Offshore Oil and Gas Exploration

Gas and oil pipes wind through The Kurnell Oil Refinery in Sydney, Australia, on March 22, 2005. Ian Waldie/Getty Images

The New South Wales (NSW) government is taking action to ban offshore oil and gas exploration in the state.

On Feb. 6, the state Labor government announced that it would introduce a new piece of legislation to amend the Environmental Planning and Assessment Act 1979.

Under the changes, all sea bed petroleum and mineral exploration and recovery activities in the state’s coastal waters will be banned.

In addition, the bill will make it impossible for energy companies to carry out other developments related to offshore oil and gas exploration (such as pipelines) within the state.

The NSW government cited the risks of “major environmental disasters” such as oil spills, as well as greenhouse gas emissions associated with petroleum extraction as the main reasons for introducing the legislation.

“The NSW government’s bill is designed to prevent the severe environmental impacts that can result from offshore exploration and recovery of petroleum and minerals,” it said.

Nevertheless, the exploration ban will not apply to activities that the state government deems beneficial to the environment, including the recovery of sand for beach nourishment or beach scraping to help protect against erosion.

Similarly, dredging activities for purposes such as removing sediments or pollutants, and laying pipelines or submarine cables will also not be subject to the ban.

NSW Climate Change and Environment Minister Penny Sharpe believed the new legislation was the right move by the government.

“We know an overwhelming majority of people in NSW do not support offshore mining. The passage of this bill will give certainty that our government is prioritising environmental protection and our own local interests,” she said.

“This bill is a sensible amendment to our legislation to protect NSW against the risks of offshore mining.”

Echoing the sentiment, NSW Central Coast Minister David Harris said local communities would be better off under the new bill.

“This is about providing communities with certainty that is in the best interest of NSW as well as protecting the NSW coastal waters and marine environments,” he said.

State Opposition to Support the Bill

It is expected that the bill will receive support from the state opposition, which introduced a similar bill in June 2023.

While Shadow Environment Minister Kellie Sloane welcomed the announcement, she questioned why the state Labor government did not take action earlier.

“Pleased to see that Labor has finally seen the light when it comes to protecting NSW coastal waters—and has agreed to legislate Liberals and  Nationals policy to stop offshore drilling of oil and gas,” she said on social media.

“I’m not sure why they didn’t just do this 7 months ago when the Coalition introduced.”

Despite the looming prospect of a total ban, some energy producers have expressed the intention to continue their exploration activities.

On Feb. 6, Advent Energy Executive Director David Breeze stated that his company would maintain its commitment to exploring and securing gas resources in the Commonwealth waters under the Petroleum Exploration Permit 11 (PEP-11).

“Numerous reports show that NSW faces a gas supply shortfall within the next four years,” he said, as reported by ABC News.

“PEP-11 has the possibility of supplying NSW with the bulk of its gas needs for 20 years.”

Meanwhile, Samantha McCulloch, the CEO of the Australian Energy Producers, a peak industry body, criticised the new legislation, saying it ignored the critical role of gas under the net zero transition and the importance of new gas supply in ensuring energy security and reducing pressures on prices.

“Report after report from independent agencies such as the Australian Competition and Consumer Commission and the Australian Energy Market Operator have warned of approaching supply shortfalls and identified the need for new east coast gas supply–especially in NSW and Victoria,” she told The Epoch Times.

“Blanket bans unnecessarily limit sources of gas when existing regulations provide an appropriate framework to determine conditions for exploration and development.”