Oil and gas more valuable to state than Olympic games

An investigation into the value of Australia’s oil and gas industry has revealed the sector could create an economic boost worth almost 10 times more than Brisbane’s Olympic Games.

An economic boost worth almost 10 times more than Brisbane’s Olympic Games will be delivered by Queensland’s booming resources sector, creating thousands of new jobs.

An investigation into the value of Australia’s oil and gas industry has revealed the sector could add more value to Queensland’s economy than hosting the 2032 Games.

Analysis by economic consultants Ernst & Young reveals that “fully unleashing” the state’s gas industry could inject an extra $30bn in investment over the next two decades and produce 7000 petajoules of oil and gas production.

Under a high-growth scenario, EY forecasts $129.3bn could be added to Queensland’s Gross State Product in the next 20 years – or $64bn under a low-growth scenario.

Queensland’s economic output through gas is expected to hit $8.7bn in 2026, representing about 2.5 per cent of the economy.

Queensland Gas LNG (APLNG ConocoPhillips)

In contrast, research by KPMG reveals hosting the 2032 Games would deliver $8.1bn in benefits to Queensland, including a $4.6bn economic boost to tourism and trade and $3.5bn in social improvements to health, volunteering and community benefits.

Andrew McConville, CEO of Australian Petroleum Production and Exploration Association, said the oil and gas industry could be more beneficial to Queensland than the Olympics.

“When it comes to adding economic value to Queensland, natural gas clearly takes the gold,” he said.

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

Mr McConville said the EY report revealed the gas industry had already added $106bn or 3 per cent a year to the Queensland economy over the past decade – employing more than 36,000 workers and paying $13bn in taxes.

“EY are predicting a bright future for Queensland’s gas industry driven by high demand for cleaner energy in Asia as they look to switch from coal to gas due to our product’s lower emissions,” he said.

The expanding gas sector is expected to add up to 2200 full-time jobs in 2026.

Mr McConville said the annual tax revenue generated by the new projects would be $1.4bn – enough to fund 20 primary schools, 25 police stations, 30 fire stations and employ an extra 1000 teachers and nurses.

Premier Annastacia Palaszczuk said Queensland had a nation-leading domestic gas policy which was powering resources projects in the recovery from Covid-19.

“Our commitment to ensure gas is available for Australian consumers is incredibly important,” she said.

Queensland Gas, Westside.

“It means businesses like New Century Resources can continue to run their day-to-day zinc mining operations, and also look to expand in the future because they are guaranteed supply from companies like Senex Energy.

“As a government we see this co-operation as critical to ensuring operations can continue to support and create jobs in the future.”

Resources Minister Scott Stewart said having different sectors of the resources industry working together would ensure economic growth.

“This new agreement shows Queensland continues to do the heavy lifting when it comes to domestic gas,” he said. “The government has released more than 20,000sq km of land for tender exclusively for the domestic market, with 15 tenures granted.”

APPEA Queensland acting director Matt Paull said the economy would benefit from a reduction in gas prices and increase in productivity.

“The Australian government estimates Australian LNG exports have the potential to lower emissions in LNG-importing countries by about 170 million tonnes of CO2-equivalent a year by providing an alternative to higher emissions fuels,” Mr Paull said.

“Natural gas has only half the greenhouse gas emissions of coal when used to generate electricity and it can do things renewables simply cannot do, such as provide the high temperatures and essential feedstock needed to produce manufactured products like fertilisers, cement, steel and plastics.”

BY THE NUMBERS

■ $106bn or 3% a year to state economy

■ 36,000 workers

■ $13bn in taxes

■ $1.4bn increase in tax revenue

■ 20 schools

■ 25 police stations

■ 30 fire stations

■ 1000 teachers

■ 1000 nurses

■ $6.5bn higher economic output

■1900 more FTE jobs

■ $2.8bn increase in consumption