Data from the latest APPEA member survey has revealed significant nationwide benefits derived from Australia’s oil and gas industry, with its economic footprint strengthening a vast chain of businesses in manufacturing, services and construction.
“The economic footprint of the oil and gas industry goes far beyond its production wells and eight liquefied natural gas (LNG) plants. Oil and gas is not ‘just’ a resources industry,” APPEA Chief Executive Dr Malcolm Roberts said.
“The industry supplies hundreds of thousands jobs in manufacturing, transport and other industries which are supported by the oil and gas we produce.
“The latest APPEA member survey data shows that the oil and gas industry purchased more than $27 billion in goods and services from local businesses in 2016-17,” Dr Roberts said.
“Businesses ranging from national firms to local cafés all share in the economic benefits generated by the oil and gas industry.
“The industry employs directly more than 32,000 Australians, with another 70,000 jobs created elsewhere in the economy supporting the industry. With industry wages more than double the national average, it is not surprising that the industry paid more than $5.3 billion in wages to its direct employees in 2016-17.
“These are impressive numbers in anyone’s language. With the working life of projects measured in decades, the benefits will continue for many years.”
To explain what this big picture means for local businesses, Inpex Australia and APPEA today hosted a small business showcase at Parliament House in Canberra.
Four local businesses from northern Australia spoke at the showcase about how their businesses have prospered from opportunities created by the INPEX-operated Ichthys LNG Project.
“The experience of these businesses confirms how a growing oil and gas industry strengthens regional Australia – creating jobs, infrastructure and economic opportunities.
“The businesses here today are a reminder of the vital economic contribution the industry makes to help small and large business throughout Australia,” Dr Roberts said.
Australia’s oil and gas industry has invested more than $300 billion in the economy over the last decade and an October 2017 forecast outlined over $230 billion worth of projects in the pipeline ahead.