Prime Minister Scott Morrison has called time on PEP-11 while saying gas remains a big part of Australia's energy needs

That, however, is the situation after Scott Morrison's visit to Terrigal on Thursday morning to confirm he was telling the NSW government that the Commonwealth would not support an application by the holders of the PEP-11 offshore oil and gas exploration area to renew their permit, which lapsed in February this year.

The system of PEP licences is regulated by a Perth-based bureaucracy, the National Offshore Petroleum Titles Administrator, which in turn answers to a "joint authority" of federal and state MPs with resources responsibilities.

IN THE NEWS:

The former NSW representative, John Barilaro, was a loud opponent of PEP-11 and there is no reason to suppose his successor, Paul Toole, has a different view.

The holders of the lapsed title now have 30 days to "respond" to NOFTA in an effort to change the outcome, but it looks very much as though PEP-11 is effectively dead in the water.

The sustained opposition from across the political spectrum suggests that few people outside of the companies involved will mourn the decision.

The companies wanting to explore PEP-11 were all fairly small players in the resource sector.

Shares in those with stock exchange listings were declining well before yesterday, indicating the decision was no surprise.

If anyone was sensing a wholesale change of heart by the PM, Mr Morrison's formal statement emphasised gas as "an important part of Australia's current and future energy mix".

Given his government's determination to have Snowy Hydro build its gas-fired power station at Kurri Kurri, he could hardly say anything else.

This win over PEP-11 echoes the campaign that saw Norwegian company Equinor retreat almost two years ago from its plans to drill for oil off the Great Australian Bight.

Coal, already on the outer, is looking increasingly marginalised as steps are taken to meet "net zero emission" targets.

As we have said here before, it's the storage of power, not its generation, that limits renewable energy at the moment. PEP-11 was probably a long shot from the start.

But the battle between climate protesters on one side, and governments feeling responsibility for energy security on the other, has room yet to intensify.

ISSUE: 39,748

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: