A planned oil and gas exploration off the NSW coast has been praised as the public could benefit from a drop in petrol prices.  However the Greens believe it would give false hope and put the environment at risk.
Media reports have said skyrocketing oil prices had driven an Australian joint venture to develop a drilling rig 22km off the Central Coast and Newcastle to search for oil and gas.
In a statement on Sunday, the office of Mineral Resources Minister Ian MacDonald said an application for an exploration licence had been received and was being assessed but no drilling had taken place.
Perth-based MEC Resources is a part of the venture and have conducted aerial surveys which detected evidence of petroleum seeps on the sea surface.
The planned exploratory drilling received a warm welcome from NSW Opposition Leader Barry O’Farrell who said if the venture was successful the public would benefit from a drop in petrol prices.
“As is evident by the increasing price of oil, we’re reliant on international oil cartels and the prices are currently only going in one direction.
“If we’re talking about oil rigs 20 kilometres off the coast, if that offers the hope of increased oil (and) reduced petrol prices, I think the community will welcome it,” he said.
However the plan also faces opposition, with the Greens MP Lee Rhiannon  claiming it poses the potential for an oil spill which could wreak untold harm to the tourism and fishing industries.
“It will give false hope and could damage the economy by any environmental disasters,” Rhiannon said in Sydney on Sunday.
“… the associated potential for oil spills demonstrate that proposed oil exploration off the NSW coast should be scrapped before it starts.”