The head of Santos has called for Australia to unleash its oil and gas potential, warning that the nation risks being left behind as Canada aggressively pursues new global markets. Speaking at the Australian Energy Producers Conference, Santos CEO Kevin Gallagher urged the federal government to take a more proactive approach to developing the country's energy resources.
Gallagher's Warning
Gallagher said that Australia must act quickly to secure its place in the global energy market, particularly as Canada moves to expand its liquefied natural gas (LNG) exports. He noted that Canada is investing heavily in infrastructure and seeking new customers in Asia, which could threaten Australia's market share.
“We are seeing Canada make significant moves to capture market share, and if we don't act, we will miss out on a massive opportunity,” Gallagher said. He emphasized that Australia has abundant natural gas reserves that could be developed to meet growing demand in Asia and other regions.
Government Policy Under Fire
The Santos boss also criticized the current regulatory environment, describing it as overly complex and slow. He called on the government to streamline approvals for new projects and to adopt a more supportive stance towards the oil and gas industry.
“The regulatory burden is holding us back. We need a framework that encourages investment, not one that stifles it,” Gallagher said. He pointed to Canada's more streamlined regulatory processes as a model that Australia could follow.
Canada's Aggressive Push
Canada has been actively seeking to diversify its energy exports, with a particular focus on Asian markets. The country is building new LNG terminals and pipeline infrastructure to transport gas from its western provinces to the coast for export.
This push is seen as a direct challenge to Australia, which has long been a leading supplier of LNG to Asia. However, Australian producers face rising costs and regulatory hurdles that could undermine their competitiveness.
Industry Support
Gallagher's comments were echoed by other industry leaders at the conference, who called for a national energy strategy that prioritizes the development of oil and gas resources. They argued that the industry can play a key role in Australia's economic recovery and in ensuring energy security for the region.
However, environmental groups have criticized the push for more fossil fuel development, arguing that it conflicts with Australia's climate goals. They have called for a transition to renewable energy sources instead.
Conclusion
As the global energy landscape shifts, Australia faces a critical choice: either embrace its role as a major energy supplier or risk losing ground to competitors like Canada. The Santos CEO's message is clear: the time to act is now.
