Reducing regulatory burden on the upstream petroleum sector
On 30 April 2009, the Productivity Commission released its Review of Regulatory Burden on the Upstream Petroleum Sector. The report identified significant unnecessary costs from delays and uncertainties in obtaining approvals, duplication of compliance requirements and inconsistent administration of regulatory processes. The commission found that these burdens could be reduced through new institutional arrangements—principally the establishment of a national offshore regulator—as well as implementation of best practice regulatory principles in all jurisdictions. On 5 August 2009, the Commonwealth Minister for Resources and Energy, the Hon Martin Ferguson AM MP, announced the Australian Government’s intention to establish a national offshore petroleum regulator in Commonwealth offshore areas, from 1 January 2012. The Council of Australian Governments is scheduled to consider an all-of-governments’ response to the commission’s recommendations in early 2010. The paper will discuss the policy rationale for reform, the proposed reforms and how they will be implemented.