Yes. Australia has enough undeveloped gas resources to meet our long-term domestic gas needs and remain a reliable energy partner in our region.  However, Australia’s long-term energy security will require continued investment in new gas exploration and development to find and produce enough gas to meet our long-term needs. The Australian Government's 'Future Gas Strategy' recognised the need for continued investment in gas exploration and development to avert near-term supply shortfalls and meet Australia’s energy needs to 2050 and beyond.  “Without further investment in new gas supply and gas infrastructure, these shortfalls will negatively affect Australian households and businesses, and the reliability of our electricity system.”  Australian Government, Future Gas Strategy, May 2024

Not in the foreseeable future. While renewables and battery capacity is increasing, natural gas will still be needed for decades to come to provide reliable electricity during periods of high electricity demand and extended ‘renewables droughts’ when weather conditions don’t suit renewables.  The Australian Energy Market Operator (AEMO) confirms that natural gas will play an essential role in ensuring reliability of the electricity grid to at least 2050 as coal power retires and the share of intermittent (solar and wind) renewables grows. “Renewable energy connected by transmission and distribution, firmed with storage and backed up by gas-powered generation is the lowest-cost way to supply electricity to homes and businesses as Australia transitions to a net zero economy.” AEMO, 2024 Integrated System Plan, June 2024

No. For many industries that use gas to generate extreme temperatures or that use gas an ingredient to make chemicals and products, there is no readily available alternative to using natural gas. Electricity cannot achieve the extreme temperatures needed. As the Australian Government’s Future Gas Strategy confirmed:  “Manufacturing cement, bricks, glass products, nitrogen-based fertiliser and electric vehicle batteries all depend on a reliable and affordable supply of gas.”  Australian Government, Future Gas Strategy, May 2024  For some industries, converting from coal to natural gas is the most viable way to significantly reduce emissions. The Australian Government’s Net Zero Plan found:  “Out to 2035, natural gas consumption in industrial sub-sectors such as steel and alumina manufacturers could grow, as they switch from coal to gas to reduce their emissions-intensity.” Australian Government, Australia’s Net Zero Plan, November 2025

Yes. In fact, natural gas is essential for Australia to reduce emissions towards net zero emissions by 2050.   Natural gas provides reliable back-up electricity for renewables as coal is phased out, and will continue to be needed to 2050 and beyond for manufacturing and minerals processing.  “Under all credible net zero scenarios, natural gas is needed through to 2050 and beyond”. Australian Government, Future Gas Strategy, May 2024

Yes. The Australian oil and gas industry is Australia’s second largest corporate taxpaying sector. In 2024-25 the gas industry paid $21.9 billion in taxes and royalties – equivalent to the annual cost of the Pharmaceutical Benefits Scheme (PBS).   The industry pays a range of state and Commonwealth government taxes, royalties and levies, which helps governments pay for schools, hospitals, roads and essential services.

The location of a petroleum (oil and gas) project determines whether it is liable to pay royalties to a state or territory government, or a production-based tax to the Australian Government.   For projects located in Commonwealth waters, the Australian Government’s Petroleum Resource Rent Tax (PRRT) applies, whereas onshore projects are liable to pay royalties to the state or territory government where they are located.

The Petroleum Resource Rent Tax (PRRT) is just one of several taxes and levies the oil and gas industry pays. It operates in place of a state royalty scheme and only applies to projects in Commonwealth waters.  Treasury estimates gas companies will pay $5.4 billion in PRRT over the next four years to 2028–29.   PRRT applies once a project has recouped development and eligible costs — which takes many years for capital-intensive projects like LNG facilities..

Comparisons with other countries ignore fundamental differences between their tax and resources operations.  Countries like Norway and Qatar have significant direct government ownership and/or investment in their oil and gas sectors, which means the government takes on more of the risks and shares more in the returns.  These countries also provide their oil and gas sectors with generous support and tax breaks. For example, Norway provides an annual cash refund up to the value of 71.8% for exploration costs in order to reduce investor risk and encourage more oil and gas exploration and development.  In contrast, countries like Australia and the United States require private companies to assume the considerable financial risk of oil and gas development.