Publication Name: PESA (QLD) Petroleum Symposium 1999
Authors: Sherrilea Ramsay
Date Published: December 1999
Number of Pages: 9
Reference Type: Magazine Article
Abstract:
The level of hydrocarbon exploration in Queensland has fallen dramatically in recent years. This is disturbing, as Queensland, with its many large sedimentary basins, has traditionally been a leader in onshore explorationactivities both in seismic data acquisition and exploratory drilling. This activity has resulted in the employment
of an appreciable number of people, particularly in regional areas, and of course the State benefited through royalties and the general commercial activities generated by the industry. The Federal Government has enjoyed taxation receipts paid by people engaged by the petroleum industry and associated service providers. An
additional benefit has been the amelioration of the balance of payments.
Several recent Government decisions have impinged negatively on petroleum exploration, which has ground to a standstill. The result is that they have killed the "goose that laid the golden egg" as both Governments' respective take from the above taxes is steadily declining. In the case of royalties, this is a consequence of declining oil production and the failure to find and produce new reserves. With regard to Income Tax, thereduced levels of activity in the oil industry have resulted in diminished taxation revenue. Urgent action is necessary to reverse this unwelcome development if the State and the Country wish to have a viable onshore petroleum exploration, and ultimately production, industry.
It should always be remembered that there are strategic reasons for producing as much petroleum as possible
from local sources.