A new Federal Government report illustrates the soaring demand for Australia’s gas resources, pushing exports to record levels and helping fund public services and infrastructure.
The Australian Petroleum Production & Exploration Association (APPEA) today said the latest Resources and Energy Quarterly showed the enduring strength of the gas industry.
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.
APPEA Chief Executive Andrew McConville said: “The report shows the extraordinary demand for Australia’s oil and gas and confidence in the sector remains very strong.
“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 $27 billion last year in new Australian supply, technology and decarbonisation initiatives.
“The return on our previous investments is clear to see,” Mr McConville said. “And our ongoing role and commitment to Australia will see us continue to deliver for many years to come.”
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% 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.
Mr McConville said: “It is our industry that is performing at a time of great economic uncertainty arising from the pandemic, helping ensure Australia has the financial capacity to respond effectively and strongly and keep the lights on at home.”
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