One Nation's Norway-Inspired Oil and Gas Policy

Australian politician Pauline Hanson has unveiled a new oil and gas policy for her right-wing One Nation party, inspired by Norway's model. The proposal would involve the commonwealth government acquiring up to 30% equity in new upstream projects, starting as early as the exploration stage. Hanson described this as a "bold long-term vision" and a "massive shift" in how Australia obtains returns from its resources. The policy would also abolish the Petroleum Resource Rent Tax (PRRT), which Hanson labeled "a failure," replacing it with a 10% royalty model for new projects. Government profits from these ventures would be placed into a sovereign wealth fund called the Australian National Investment Wealth Corporation.

Key Mechanisms and Oversight

Under the proposal, companies would receive a 30% rebate on exploration expenditure in commonwealth waters in exchange for the government taking up to a 30% equity stake in the project, lasting through to decommissioning. A new commonwealth investment body would oversee the government's stake but would not be involved in day-to-day asset operations. Existing oil and gas projects would continue under the current PRRT scheme if the policy is implemented.

Criticism and Concerns

The opposition Liberal and National Coalition strongly criticized the plan, with Liberal frontbencher James Paterson calling it "borrowed from Venezuela and Hugo Chavez, not Australia." He acknowledged the principle of wanting better returns on natural resources but argued that nationalizing the industry is not the answer. Resources Minister Madeleine King also rejected the Norwegian model as inappropriate for Australia, stating that One Nation's cherry-picking of another country's system reflects a lack of knowledge about Australia's gas and political systems. Additionally, an academic and a geoscientist expressed concerns that taxpayer money could be wasted on unsuccessful exploration, potentially becoming a vote-loser, and that the government might take years to see financial returns from hydrocarbon production.