The Victorian Parliament has voted to establish a parliamentary inquiry into the decommissioning of aging and retired offshore oil and gas infrastructure.
This decision, made on August 28, 2024, comes in response to growing concerns about the environmental impact of abandoned wells and platforms in Bass Strait.
The inquiry will focus on the clean-up of hundreds of “plugged and abandoned” oil and gas wells off the Victorian coast.
Many of these wells are suspected to be leaking methane, a potent greenhouse gas nearly 90 times more harmful to the climate than carbon dioxide over a 20-year period.
This investigation is expected to have far-reaching implications for the entire Australian oil and gas industry.
With an estimated $60 billion cleanup required nationwide, the inquiry’s findings could set important precedents for decommissioning practices across the country.
While the inquiry’s primary focus is on leaking wells, environmental groups are urging for a more comprehensive investigation.
Friends of the Earth (FoE) has called for the inquiry to examine ExxonMobil’s broader decommissioning plans, including:
- Proposals to dump steel from eight rigs into the ocean
- Plans to transport toxic “topsides” and waste to the Corner Inlet Ramsar Site
Recent research suggests that one in four oil and gas wells may fail, posing significant environmental risks.
The Victorian coast currently hosts approximately 400 aging wells, with potentially 100 already leaking.
A major concern is the financial burden of proper decommissioning.
Environmental advocates argue that fossil fuel corporations should be held responsible for cleanup costs, rather than leaving the expense to taxpayers.
The Victorian Greens, led by Ellen Sandell, successfully pushed for this inquiry.
Sandell emphasised the need for a comprehensive plan to address the issue and called on both state and federal Labor governments to hold fossil fuel companies accountable for their environmental impact.
As the inquiry moves forward, it will likely shed light on the complex challenges of offshore gas decommissioning.
The findings could shape future policies on environmental protection, corporate responsibility, and the transition away from fossil fuels in Victoria and beyond.