NSW should follow Queensland and allow coal seam gas drilling because it is environmentally safe and will greatly enrich its economy, Industry and Science Minister Ian Macfarlane says.
Australia has plenty of gas to meet domestic demand but the federal government wants to make it easier for energy companies to get projects approved, Mr Macfarlane told the Australian Petroleum & Exploration Association conference.
Describing Australia as a global energy superpower, Mr Macfarlane said reducing the regulatory burden on the industry was a priority.
Australia's LNG exports were worth $18.2 billion in 2014/15 and are expected to increase at an annual growth rate of 21 per cent to $46.7 billion in 2019/20, putting it among the nation's top few exports.
However there is vocal opposition from Australian manufacturers, which fear they will be hurt by soaring prices or a lack of supply as natural gas is exported to Asia while people living near unconventional coal seam gas reserves oppose drilling it.
The NSW coalition government has greatly restricted coal seam gas drilling.
"There has been an unnecessary scare campaign about unconventional gas, in particular coal seam gas, which has not served the community's interest," Mr Macfarlane said.
"If the argument is based on science and fact, NSW will follow Queensland and see $60 billion in investment, 31,000 jobs and 5,000 farmers become much richer than before they signed up to co-existence agreements on coal seam gas.
"Individual farmers have received millions of dollars each out of coal seam gas with no risk, no capital."
Mr Macfarlane said unconventional gas accounts for 40 per cent of production in the eastern states and it's importance is set to grow.
He described oil and gas as an Australian success story with the nation to become the world's largest LNG exporter by 2020.
Despite the plunge in oil prices, gas demand out of the Asia Pacific was strongly growing, he said.
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