Minister endorses oil and gas sector in Queensland

Queensland’s new Minister for Resources Scott Stewart’s strong endorsement of the importance, contribution and economic benefits of the oil and gas industry has been welcomed by APPEA.

In a speech to Parliament recently, Minister Stewart said the industry continued to do “the heavy lifting with gas production, for the domestic and export markets” and “gas is an essential part of Queensland’s economy and will continue to be so in the future.”

APPEA Queensland Director Georgy Mayo said the industry – which is a major economic driver for the state — welcomed this ongoing support.

“The oil and gas industry is fully committed to working with the Queensland Government to support the state’s economic recovery and ensure the sector continues to support highly skilled jobs and economic growth, including across regional areas,” Ms Mayo said.

“Oil and gas is a mainstay of Queensland’s economy with companies continuing to invest billions of dollars each year in on-going exploration and development.”

Mr Stewart’s acknowledgement of the major projects and investments being delivered by companies including Senex, APLNG/Origin and Arrow Energy, to help bring more gas into the market, was also welcomed by APPEA.

“This industry has invested more than $70 billion into Queensland’s economy and the sector makes a significant contribution to the state including through petroleum royalties – which are forecast to increase to more than $2 billion over the forward estimates — to help build schools, roads and hospitals,” Ms Mayo said.

Ms Mayo said the Government’s plans to invest $5 million in pipeline infrastructure to secure new gas reserves in the resource-rich Bowen Basin and the $3.3 million Strategic Resources Exploration Program will help to unlock more supply.

“The Queensland Government’s ongoing releases of acreage for exploration and development are essential to building wealth, economic resilience and whole-of-economy gains for Queensland and the national economy,” Ms Mayo said.

Gas-driven recovery

Meanwhile, in the Top End APPEA said the release of the Territory Economic Reconstruction Commission (TERC) final report has highlighted the key role the oil and gas industry can play in supporting the NT’s economic recovery.

APPEA’s NT Director Keld Knudsen said the report outlined key recommendations to improve the investment environment for the Northern Territory, focusing on smart, fit-for-purpose regulations and ambitious approaches for collaboration to encourage economic growth.

“It’s clear the oil and gas industry is a central pillar to the TERC plan as the sector can play a key stabilising role in the Territory’s economic recovery by providing jobs and investment along with taxation revenue to the Northern Territory Government,” Mr Knudsen said.

Mr Knudsen said successful exploration, appraisal and development of natural resources could provide significant benefits of jobs, local business opportunities infrastructure and community investment for decades to come.

“With abundant natural resources, access to key markets in Asia and a skilled workforce, the Territory is well positioned to rebound from the COVID-19 pandemic and to capitalise on the emerging opportunities created by increasing global energy demand, particularly in Asia,” Mr Knudsen said.

Importantly, the report highlighted mining and energy will have the biggest contribution towards increasing economic growth at 27.5 per cent.

“We have a tremendous opportunity to continue to turn the Territory’s existing and prospective natural resources — including in the Beetaloo Basin — into long-term wealth and increase economic growth,” Mr Knudsen said.

The TERC report also highlighted that “globally, the use of gas is expected to rise both as a feedstock and a source of power” driven by growing energy demands and a desire to implement cleaner energy solutions.

“The responsible development of natural gas resources will provide lower emissions energy to the local economy and globally through LNG exports to Asian customers.  Emissions from natural gas generated electricity is 50 to 60 per cent lower than from coal generated electricity.  Exporting gas as LNG also enables our Asian trading partners to reduce the emissions from their economies.

“Industry looks forward to engaging with the NT Government on the implementation of the report and continuing to create new opportunities for the Territory.”