June 24, 2022
  • June 24, 2022

Queensland gas could be bigger than the Olympics

By on September 18, 2021 0

The Voice of the Australian Oil and Gas Industry today released a comprehensive independent report on the Queensland gas industry, which shows it could add more value than the 2032 Olympics * to the country’s economy. ‘State.

APPEA chief executive Andrew McConville said the EY report showed the oil and gas industry has the potential to boost Queensland’s economy for years to come.

“When it comes to adding economic value to Queensland, natural gas clearly wins gold,” said McConville.

“Gas means jobs, gas means cleaner energy and gas means economic prosperity for our state, especially regional Queensland.

“The report shows the industry has already added $ 106 billion or 3% a year to the Queensland economy over the past decade, employing more than 36,000 workers and paying $ 13 billion in taxes.

“But that’s just the tip of the iceberg, EY predicts a bright future for Queensland’s gas industry, driven by strong demand for cleaner energy in Asia as it seeks to switch from coal to gas due to the lower emissions of our product.

“EY has discovered that unleashing the full potential of the Queensland gas industry could result in an additional investment of $ 30 billion, producing 7,000 PJ of production capacity in the Queensland oil and gas industry over the next 20 years. .

“In fact, EY has said that with the right political parameters, an additional $ 129.3 billion could be added to the Queensland State’s gross product over the next twenty years under a high growth scenario. • With Queensland’s economic output from gas increasing by $ 8.7 billion in 2026 – this represents almost 2.5% of Queensland’s current economy.

“Even in the low growth scenario **, it stands at $ 64 billion.

“The benefits of this investment are particularly pronounced in the short term, with nearly 2,200 additional full-time jobs created in 2026 in a high growth scenario.

“To put these huge numbers into perspective, the annual tax revenue generated by these new projects would be $ 1.4 billion, which is equivalent to funding 20 elementary schools, 25 police stations, 30 fire stations and employing over 1,000 additional teachers and nurses. “

Queensland Acting Director Matt Paull said the report also says parts of the economy will benefit from lower gas prices and increased productivity.

“The benefits to the environment are also immense,” said Mr. Paull.

“The Australian government estimates that Australian LNG exports have the potential to reduce emissions in LNG importing countries by around 170 million tonnes of CO2 equivalent (Mt CO2-e) per year by providing an alternative to fuels at higher emissions. This equates to over a third of Australia’s total annual emissions.

“Natural gas only has half the greenhouse gas emissions of coal when used to generate electricity and it can do things that renewables just can’t do, like providing the high temperatures and essential raw materials needed to produce manufactured goods such as fertilizers, cement, steel and plastics.

“Our industry invests billions of dollars in emission reduction technologies. The oil and gas industry has the technology, skills, experience and business relationships to develop a hydrogen industry globally, both domestically and for export.

“Our industry’s investments in carbon capture and storage already eliminate around 40 Mt of CO2 per year, but we have greater ambitions to develop them even further. “

* KPMG research predicts that hosting the 2032 Games will bring $ 8.1 billion in benefits to Queensland, including an economic boost of $ 4.6 billion for tourism and trade and $ 3.5 billion in social improvements such as health, volunteering and community benefits.

** Low Growth – Includes investment and production for Queensland oil and gas projects that are currently under development or have a high level of investor engagement. High Growth – Building on the low growth trajectory, this scenario captures the investments and associated production returns for oil and gas projects in Queensland that are promising but have yet to secure firm trade commitments.

Read the full report

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