Queensland government appoints tenderers for new oil and gas exploration in Taroom Trough

Queensland’s Taroom Trough: A New Energy Frontier or a Step Backwards?

The Queensland government has given the green light to oil and gas exploration in the Taroom Trough, a 750-square-kilometre area near Miles in southern Queensland. The move, announced on Tuesday, February 10, 2026, has sparked both excitement about potential economic benefits and concerns from environmental groups.

Unlocking Australia’s Next Oil Province?

The Taroom Trough is being touted as potentially Australia’s first major new oil province since the 1970s. Minister for Natural Resources and Mines Dale Last stated the area has “serious potential to revitalise a domestic oil production industry” and boost energy supplies, aiming to put downward pressure on prices. Three companies – Omega TN Pty Ltd, Tri-Star Stonecroft Pty Ltd, and Drillsearch Energy Pty Ltd – have been appointed as preferred tenderers for exploration.

Australian Energy Producers director Keld Knudsen emphasized the importance of expanding exploration sites to sustain fuel supply for key sectors like transport, mining, and agriculture. Energy analyst Rick Wilkinson, of Energy Quest and the University of Queensland, noted “very encouraging oil results” from existing projects in the area, adding that it’s “early days” but the region is emerging as a promising onshore exploration site.

Domestic Focus, But at What Cost?

The Queensland government has stipulated that any gas produced from the Taroom Trough will be directed to the Australian market, adhering to the Australian Market Supply Condition. This aims to prioritize domestic energy needs. However, this commitment hasn’t quelled criticism.

Environmental Concerns and a Clash with Emissions Targets

Conservation groups are raising alarms about the potential environmental impacts of the exploration. Concerns center on groundwater quality, water consumption, and increased fossil fuel emissions. Queensland Conservation Council’s Clare Silcock argues the decision directly contradicts the state government’s emissions reduction target of 75 per cent below 2005 levels by 2035, stating they “just don’t have a plan to meet it and they’re actively going against it.”

Lock the Gate national coordinator Ellen Roberts highlighted the potential for experimental gas wells to be placed up to 4km underground, with infrastructure remaining permanently even after production ceases. She also pointed to a broken pre-election promise to protect prime agricultural land on the Darling Downs.

The Gamble: Risk vs. Reward

Omega Oil and Gas chief executive Trevor Brown acknowledged the high costs and risks associated with exploration – a single well can cost between $15 million and $20 million. However, he believes the potential economic and energy security benefits justify the investment, framing it as a “national security and an energy security issue.” He also emphasized the industry’s adherence to strict regulations and solid relationships with local communities.

A Broader Trend: Balancing Energy Needs and Climate Goals

This decision comes amidst a wider debate about Australia’s energy future. In January, the Queensland government approved three gas exploration sites in the Cooper-Eromanga basin and CleanCo withdrew from the Moah Creek wind farm, opting for a different wind farm project in north-west Queensland. These moves signal a complex balancing act between securing energy supplies and meeting climate commitments.

Frequently Asked Questions

What is the Taroom Trough? It’s a 750-square-kilometre area in southern Queensland identified as having potential for significant oil and gas reserves.

Who are the companies involved in the exploration? Omega TN Pty Ltd, Tri-Star Stonecroft Pty Ltd, and Drillsearch Energy Pty Ltd have been appointed as preferred tenderers.

What are the environmental concerns? Concerns include potential impacts on groundwater quality, water consumption, fossil fuel emissions, and the protection of agricultural land.

Will the gas be exported? The Queensland government has stated that any gas produced will be for the Australian market.

What is the potential economic benefit? The government hopes the exploration will revitalize the domestic oil production industry and put downward pressure on energy prices.

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