Australian Energy Producers conference: Santos boss wants oil and gas ‘unleashing’ as Canada chases markets

Australia should be “unleashing” its oil and gas sector instead of controlling it as Canada plots to snaffle our markets, Santos boss Kevin Gallagher says.

The chief executive agreed at the Australian Energy Producers conference in Adelaide on Wednesday that Canadian Prime Minister Mark Carney was “absolutely” targeting Australia’s customer base in developing massive new hydrocarbon infrastructure as part of an exports expansion push.

“He sees the reluctance or the apprehension in Australia about whether they’re ‘all in’ or not,” Mr Gallagher said.

“And if you look at the LNG opportunity here in Asia, we’re talking about 40 to 60 per cent growth — depending who you speak to — between now and 2050 in that Asian LNG demand.”

That was a huge opportunity for Australia’s proven reliable, close-to-market oil and gas sector.

But after a decade of interventions, as he travelled around the world, people “everywhere” were asking questions about Australian Government support and fiscal certainty, Mr Gallagher said.

The nation’s reputation as a safe haven for investment was at risk of slipping, he warned, referring to the controversial new gas reservation policy, applying from mid-2027 and confirmed after fierce debate over taxing the sector more heavily.

Investors, partners and governments overseas were all very concerned, Mr Gallagher said.

“This is a sliding doors moment for Australia, an opportunity to cement and bolster our country’s credibility as a predictable long-term destination for global capital, as a trading partner and as a country that understands prosperity is built over decades, not three-year cycles,” he said.

“If not, we risk being bypassed.

“Australia cannot assume that capital will always choose us.

“We have lots of resources in the ground and instead of thinking about controlling the amount we develop, I’d be unleashing it.”

Meanwhile, new Woodside Energy boss Liz Westcott said the Middle East conflict had “absolutely” put operators in the Asia Pacific region back in focus, with the benefit of diversified supply now “crystal clear” to customers.

“New development in the Asia Pacific is definitely attractive,” Ms Westcott told reporters on the sidelines of the conference.

Even when the Strait of Hormuz reopened, Qatar’s LNG sector — which represented 17 to 20 per cent of global supply — was going to make months or years to restart, she said.

“The LNG industry is estimating the impact of the war: I don’t think markets and consumers and society is yet fully appreciating it,” Ms Westcott said.

“There’s a belief that things will return to normal at some soon point.”

Ms Westcott said the sector was keenly awaiting more details on the gas reservation policy.

The Federal Government was acutely aware WA’s own two-decades old system worked well “so there’s no intent to stop it working well”, she added.