Australia’s resource and energy export earnings are forecast to hit a record $310 billion in 2020-21, up from $299 billion in 2019-20, according to the Department of Industry, Science, Energy and Resources’ (DISER) latest Resources and Energy Quarterly.
According to the report, Australian export volumes of liquified natural gas (LNG) are forecast to increase by 5.3 per cent to 83 million tonnes in 2021–22, as technical issues are resolved at the Prelude and Gorgon LNG plants.
Australia’s LNG exports earnings are expected to increase from an estimated $32 billion in 2020–21 to $49 billion in 2021–22, as oil-linked contract prices rise sharply.
DISER notes that oil prices are forecast to average US$67 a barrel in 2021, significantly higher than 2020, when prices were severely affected by COVID-19. Over the medium term, prices are projected to remain above US$63 a barrel in real terms.
Australian crude oil and feedstock exports are estimated to have declined to 286,000 barrels a day in 2020–21. Exports are forecast to increase to around 310,000 barrels a day in 2022-23.
Furthermore, Australian oil export earnings in 2021–22 are projected to recover to $10.9 billion (in real teams), reflecting higher oil prices and recovery in export volumes.
Australian Petroleum Production and Exploration Association (APPEA) Chief Executive, Andrew McConville, said the data underscores the importance of the resources industry to the nation’s economy.
“I am sure this won’t be lost on the highest levels of government,” Mr McConville said.
“We will continue to have a good working relationship with Resources Minister Keith Pitt and I am sure the new Cabinet also understands our industry is doing the heavy lifting at a time of great economic uncertainty arising from the pandemic.”
“Australia’s resources and energy exports are helping ensure that Australia has the financial capacity to respond effectively and strongly,” he said.
The full June 2021 Resources and Energy Quarterly can be found here.