The Australian oil and gas industry has a compelling economic story to tell. Much of the investment in the industry occurs in regional areas, strengthening regional economies, creating employment and making regional communities more resilient.
The Australian oil and gas industry has invested more than $350 billion in natural gas production, transport, liquefaction and export facilities over the last decade.
As of October 2018, the Department of Industry, Innovation and Science reported over $70 billion worth of projects are in the upstream investment pipeline. In the 12 months to October, more than $100 billion worth of projects were completed.
This investment will deliver returns for Australia for decades to come, through increased natural gas supply for Australian customers, export revenue, jobs, royalties and taxes.
According to the Department of Industry, Sceince, Energy and Resources liquefied natural gas (LNG) is now Australia’s second largest export commodity after iron ore, with export revenue of $50 billion in 2018-19. LNG exports have more than doubled over the last two years (from $22.3 billion in 2016-17).
Oil and gas is not just a resources industry – the sector supports a vast supply chain of businesses in manufacturing, services and construction. The industry supports 80,000 jobs directly and indirectly in Australia and hundreds of thousands more in electricity generation, manufacturing, transport and other industries that rely on the sector’s outputs.
The industry contributes nearly 2% to Australia’s GDP and around 11% of our total exports (goods and services) – this is expected to grow in the coming years. The industry’s average wages are more than double the national average of all industries at more than $150,000 per year.