The Labor leader was elected unopposed to the position on Monday following a caucus meeting.
Foley told the ABC yesterday that believed it was time for a state-wide moratorium on coal seam gas.
"I have spent some time in the past with the residents of Fullerton Cove, a couple of years ago, when they were battling against the coal seam gas industry in their community," he said.
"I helped draft Labor's policy for a total statewide moratorium on coal seam gas until all 16 of the chief scientist's recommendations are addressed and implemented.
"Of course there will be some areas that should be permanently off limits to coal seam gas. Whether it's our productive agricultural land or our water, it's just too much of a risk."
APPEA called the comments "alarming news" for gas users and the industry alike.
"It's disappointing the new Opposition Leader has chosen to align his party with the Greens scare campaign via comments to the ABC today calling for a statewide moratorium on the production of natural gas from coal seams," the industry body said in a statement.
"Such comments ignore both science and 60 years of demonstrated experience.
"NSW regulated gas prices rose by more than 10% last year, putting pressure on both households and the manufacturing sector.
"There are gas companies willing and able to invest in NSW and help put downward pressure on rising prices."
Coal seam gas has long been a contentious topic in NSW, with the Fullerton Cove, Gloucester and Broke areas housing strong opposition to the industry.
"The science is not in on CSG. It is time to hit the pause button on CSG development in our state," Fullerton's website says.
"NSW Labor believes all current CSG exploration licences should be suspended and no new exploration or production licences issued until a tight regulatory framework based on independent science can be established.
"The risks to our aquifers, waterways, our high-value farmland and our biodiversity are too great."
The website goes on to blame a large portion of the party's 2011 election defeat on a reaction to its then open CSG policy.
