Target for Beetaloo explorers remains gas, not oil

In a recent comment piece, the Energy Minister Angus Taylor discussed the need for Australia to better secure its independence by finding more oil.

"More local supply of crude oil will help, which is why the government is focused on opening up the Beetaloo Basin in the Northern Territory," Mr Taylor wrote.

Some of those opposed to the development of an onshore gas industry in the NT have previously claimed the focus of mining companies is not gas but oil, as Mr Taylor suggested.

But Australian Petroleum Production and Exploration Association director for NT Keld Knudsen today reaffirmed the current exploration program in the Beetaloo Basin is focused on gas from shale rock, and is intended to evaluate both dry and liquids-rich gas.

"The development of liquid-rich gas is important for Australian fuel security. It includes propane, butane and other gases that are a liquid under pressure. These are commonly found in your barbecue and are an essential ingredient in many manufacturing processes," Mr Knudsen said.

"There are significant areas in Australia where conventional onshore oil and gas operations handle liquids rich gas (e.g. the Cooper Basin in north east SA and south west Queensland is has significant liquids production and is Australia's largest onshore oil producing area.)

"The Mereenie fields west of Alice Springs have seen significant liquids production over the years as well.

"The well construction, fracture stimulation, subsurface, and waste management does not materially change. The Pepper inquiry assessed these aspects and concluded any risks can be managed by effective regulation.

"The inquiry concluded that if liquids were developed this would "not materially affect the mitigated risk assessments contained in this report".

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