Innovation is the key to maintaining Australia's standing in an increasingly competitive global oil and gas market according to Arrow Energy Chief Executive Officer Andrew Faulkner.
Speaking to a CEDA audience in Brisbane, Mr Faulkner said the industry must improve its stakeholder engagement to promote better coexistence and create new technology.
"We lost sight of the external environment for some period of time," he said.
"I think the great change which I am sure the industry is capable of doing is stepping up that environmental external social challenge while continuing the technical innovation," he said.
Mr Faulkner noted areas for improvement include social licence to operate and stakeholder engagement.
While the relationship between gas companies and external stakeholders has got better, there is still a long way to go, he said.
"It's an irony in a way that in the world of social media and instant transparency that the world wants a doubling of energy use but on the other hand wants an environmental performance that is beyond anything we've ever seen," he said.
On the industry's long history of innovation, Mr Faulkner said it will continue to develop new platforms and technology such as floating rigs.
Safety innovation has also become an integral part of the industry and will continue to be for years to come, Mr Faulkner said.
"Safety has become intrinsically part of raison d'etre, intrinsically part of your headspace and the recognition is absolutely good for business," he said.
While addressing the market climate, Mr Faulkner said demand for commodities will rise due to increasing GDP in Asia's developing countries.
"Global energy between now and 2050 will double (or) triple in size," he said.
Mr Faulkner said there is a huge market for countries such as Australia to progress.
But Australia will also face competition from suppliers in America, African, Europe and Canada. Therefore, the industry must manage the cost and productivity of business in Australia.
"Do I think Australia can be competitive? Absolutely…but it's not something Australia should take for granted," he said.
In order for Australia to continue to reap the benefits of its strong standing in the global market, it must develop surety in the fiscal regime and better regulatory environment, he said.