New analysis shows value of, and demand for, Australia’s natural gas
June 1st, 2016
The nation’s peak industry economist has laid out the value add of the oil, gas and energy resource sector in a new report.
The Office of the Chief Economist’s Industry Monitor for May 2016 includes comparisons of the five industry growth centres identified by the Federal Government:
- Food and agribusiness
- Mining equipment, technology and services
- Oil, gas and energy resources
- Advanced manufacturing
- Medical technology and pharmaceuticals
The comparators show that in 2014-15, oil, gas and energy resources provided employment for 111,000 people with a gross value add of almost $55 billion, placing the sector ahead of the four others in terms of value added, and third behind food and agriculture and manufacturing in terms of employment generated
This data comes off the back of new data from the Australian Bureau of Statistics (ABS) which confirms that strong LNG exports are a source of growth in our domestic economy.
And, in more good news, the US Energy Information Administration’s latest World Energy Outlook, shows clearly the continued demand for natural gas as a primary energy source across the Asian region – our primary export market – for the next two and a half decades.
The full tables showing the expected demand in both OECD and non-OECD Asian countries can be accessed here, but the TL;DR summary is simple:
- For OECD Asian countries, the average annual percent change to 2040 is 1.6%
- For non-OECD Asian countries, the average annual percent change to 2040 is 4.4%
In both cases, those projections far outstrip the scenarios for coal over the same period.
Combined, these datasets show the importance of continuing to develop Australia’s gas industry – ignoring the shrill anti-industry activist campaigns and focusing instead on jobs, investment and export opportunities.