Oil and gas major Woodside Energy CEO Meg O’Neill has called for reforms to Australia’s project approval processes, arguing that lengthy delays are undermining investment and the country’s global competitiveness.

Speaking at the Melbourne Mining Club on Thursday, O’Neill highlighted that it took six years to secure approval for the North West Shelf Project Extension, despite bipartisan support and its long-standing contribution to Western Australia’s economy.

“We understand the need for robust environmental assessment, but when an approval to continue to use existing infrastructure takes more than six years, it’s in nobody’s interests,” O’Neill said. “It does not give Australia a competitive edge, or better environmental outcomes.”

The North West Shelf project has been a cornerstone of Western Australia’s energy sector since 1984, providing billions in royalties and excise while supporting tens of thousands of jobs. The extension of this infrastructure would allow these benefits to continue for decades, yet the drawn-out approval process has stalled progress.

O’Neill contrasted Australia’s sluggish regulatory environment with other countries where projects can be assessed and approved in a fraction of the time. She urged government action to reduce bureaucratic hurdles and combat activist-driven legal challenges, which she said prioritise political agendas over the national interest.

Beyond regulatory reform, O’Neill emphasised the economic opportunity that global decarbonisation presents. She pointed out that replacing 20% of Asia’s coal-fired power stations with gas would require 310-billion cubic metres a year of gas –  three times Australia’s LNG exports in 2023.

The Western Australian government has recognised the role gas can play in reducing emissions, but O’Neill called for a broader national strategy that includes streamlining approvals for new energy projects.

She also highlighted that Australia must focus on making the most of its natural advantages and ensuring energy policy is guided by science and facts, rather than wishful thinking. “Because Australia’s energy security and ongoing national prosperity are what’s at stake,” she said.

O’Neill noted that productivity growth remains weak and that Australia must sharpen its competitive edge amid rising global protectionism and greater competition for capital. She pointed to the US’s recent efforts to deregulate its economy and spur new energy investments, making it even more crucial for Australia to remain an attractive investment destination.

One of Australia’s historic advantages has been cheap and reliable gas, which has supported industry growth. O’Neill warned that energy insecurity could threaten both existing businesses and the emergence of new industries such as critical minerals processing and decarbonised steelmaking. She cited Woodside’s recent collaboration with BlueScope, BHP, and Rio Tinto on a pilot project using iron-ore to produce lower-carbon steel, initially powered by natural gas but aiming to transition to hydrogen.

“We must keep it this way – to safeguard the businesses we have now, and hopefully, to attract businesses in new industries of the future,” she said.

While advocating for regulatory changes, O’Neill acknowledged that industry must also play its part. She urged the resources sector to focus on technology and innovation to maintain cost competitiveness, uphold its economic and social contributions, and continue decarbonising in line with global goals.

As Australia navigates its energy transition, O’Neill stressed the need for policies that balance economic growth with environmental responsibility. “We must have the courage to keep all options on the table and be guided by the facts as we map a prosperous future, together,” she concluded.