While Mr MacFarlane has impressed some in the industry with warm rhetoric about the government being a 'facilitator' and 'catalyst' to develop business and industry growth, he will no doubt be measured by his response to four critical issues facing the energy business.

These issues include a review of energy policy by the Council of Australian Governments, Commonwealth greenhouse policy, the Trebeck Review of fuel tax as well as the Tax Office's "effective life of asset" decision on energy infrastructure.

Australian Petroleum Exploration Association (APPEA) executive director, Mr Barry Jones, faces a "transport fuels" choice. "Whichever way one looks at it, if governments don't do something, Australia will be importing more oil in the future," he said. Mr Jones argues that cheap electricity on the eastern seaboard is the main political imperative.

The energy industry is also concerned by the CoAG review, which is running six months late and has had its credibility questioned because of the controversial appointment of coal man, Mr Warwick Parer. It seems a report will not be delivered before 2003 with the result that energy supplies will become unreliable, according to industry insiders.

The other bugbear for industry lobby groups is the Tax Department's treatment of energy infrastructure, with the Howard Government promising a review. Many argue that an uncompetitive tax system will not only inhibit Australia's ability to contain greenhouse emissions, it may also stop investment in a fifth production train for the North West Shelf LNG gas project.