Australia is heading for an economic boom with expanding liquified natural gas (LNG) investments, points out a new report from Deloitte Access Economics.
According to a study by Deloitte Access Economics, commissioned by the Australian Petroleum Production and Exploration Association, more than half of LNG projects in the world are under construction in Australia. The resulting economic consequences will pave the way for Australia to become the second largest exporter of LNG, after Qatar. Presently, Australia is the fourth largest exporter of LNG in the world.
The analysis put forth by the group says that in 2010-11 the oil and gas industry accounted for 2% of Australia’s GDP, contributing $28.3 billion to the economy.
However, this contribution is said to peak to $65 billion in 2020 and $60 billion in 2025, motivated by the rapid growth in the oil & gas industry. In 2020, when production and prices are expected to reach their highest value, the oil & gas industry’s economic contribution to the GDP is said to be around 3.5%.
Australia’s oil projects worth $185 billion, those which are in construction phase and others in planning, together account for 35.4% of all business investment. Once accomplished, they will contribute to 64% of all committed investment in Australia.
However, burgeoning oil & gas projects will create a shortage in labor and Australia cannot solely depend on local workers. The country should look at prospects which involve labor migration and fly-in, fly-out workers. Even so, unions are opposing the requirement, saying it will deny jobs to local workers.
Image Credit: Creative Commons/Marcus Wong Wongm