NT’s Beetaloo Basin among national projects flagged to create 220,000 jobs, boost economy by $350bn in next two decades

MORE than 220,000 jobs will be created over the next two decades if key oil and gas projects currently in the pipeline, including the NT’s Beetaloo Basin, go ahead, according to new research

MORE than 220,000 jobs will be created over the next two decades and national economic output is estimated to increase by more than $350bn if key oil and gas projects currently in the pipeline, including the Northern Territory’s Beetaloo Basin, are unleashed, according to new Ernst & Young research.

The E&Y report also found that for every billion dollars of industry activity lost through burdensome regulation there could be an overall efficiency loss of up to $1.79bn to the economy.

The report, Australia’s oil and gas industry: kickstarting recovery from COVID-19, was commissioned by the Australian Petroleum Production and Exploration Association.

It highlights the significant multiplier effect of the oil and gas industry that positions it to deliver economic dividends across supply chains and local economies.

The E&Y report says the gains from reinvigorated activity in the oil and gas industry have the potential to spread throughout the economy.

This would then provide a kickstart for Australia’s industrial base by lowering energy prices, boosting demand for services and generating wealth for all Australians.

Origin Energy’s Beetaloo Basin Kyalla well site. Picture: Supplied

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It points out that securing investment requires active steps to improve Australia’s competitiveness through effective policy settings.

Australian Petroleum Production and Exploration Association chief executive Andrew McConville said while the report acknowledged the strong headwinds and challenges brought on by the COVID-19 pandemic, unlocking new energy resources at scale would help build wealth, economic resilience and whole-of-economy gains for Australia.

“Delivering these benefits will require investment in new exploration and production projects, and this is dependent on having the right investment settings in place,” he said.

“Currently, there are barriers to investment, and additional interventions being proposed are an even greater disincentive.

“So we must address Australia’s competitive position through effective policy settings to encourage, rather than deter, long-term investment,” he said.

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Mr McConville said relatively simple changes to the timing of some investment allowances and improved regulatory arrangements – along with maintaining stability in the tax regimes – would make Australia much more competitive for global investment.

“A growing oil and gas industry means more economic benefits for everyone, supporting job creation and profits in industries across the economy, including construction, trade, business services and finance, and manufacturing,” he said.

“Economic recovery is not about just manufacturing.

“It is about every part of our economy, regional jobs, international trade and major infrastructure investment.”