The latest Resources and Energy Quarterly report from the Federal government showed soaring demand for Australia’s gas resources, pushing exports to record levels and helping fund public services and infrastructure.
Demand for gas will help push Australia to a record $425 billion in export earnings this financial year – up from a then record $379 billion forecast only three months ago.
According to the report, earnings from Australia’s LNG exports are forecast to rise from $30 billion in 2020-21 to $70 billion in 2021-22, and $82 billion in 2022-23.
Australian export volumes are forecast to increase to a record 82 million tonnes in 2021-22.
In 2021-22, Australian crude and condensate export values are forecast to rise 86 per cent to $13.8 billion, driven by high oil prices and stronger production volumes, particularly for condensate.
Exports are forecast to rise slightly in 2022-23, due to the higher oil prices forecast for 2022 and 2023.
Between 2023-24 and 2026-27, export values are projected to remain around $11 billion.
The Australian Petroleum Production & Exploration Association said the report illustrated the enduring strength of the gas industry.
APPEA chief executive Andrew McConville said the report showed the extraordinary demand for Australia’s oil and gas and confidence in the sector remained very strong.
He said: “We are helping the government fund key public services and infrastructure while creating and supporting thousands of jobs and driving economic growth.
“Ultimately, we are again shown to be central to our economy and delivering huge benefits – helping support key areas like schools, hospitals, and roads.”
The industry announced investments of more than $27 billion last year in new Australian supply, technology, and decarbonisation initiatives.
McConville noted the recent Federal Budget also confirmed the enduring and significant economic contribution of Australia’s oil and gas industry to the economy and its role in a lower emissions future.
He said: “As noted by the Treasurer in his 2022-23 Federal Budget speech, Australia is on a pathway to net zero emissions by 2050.
“Measures such as expanding the patent box concession for low emissions technology innovations, $300 million additional funding to support low emissions LNG, hydrogen production and associated carbon capture and storage infrastructure can help us continue to contribute to that pathway.
“Additionally, improvements to environmental regulation and planning for new infrastructure are all important to facilitating ongoing investment that will deliver more secure supply and cleaner energy.
McConville said also APPEA recognised the need for the Government to focus on inflationary pressures, cost of living, and housing affordability.
He continued: “However, there are some practical changes that would have further cemented Australia’s role as an energy leader by helping to attract global capital and capitalise on our competitive advantage.
“We would like to have seen temporary investment allowances announced previously to be expanded in scope and be made a permanent feature of the taxation landscape as part of a longer term reset of investment policy.
“This would have complemented our own investments and benefited the economy more broadly.
“Incentivising investment can stimulate growth in capital availability, wages, and GDP in the same way as a company tax cut, while also raising national income.
“We will continue to work with whoever is in government to get the settings right to ensure Australia is best placed to maximise our competitive advantages in energy security and decarbonisation.”
