OIL AND GAS INDUSTRY IN WESTERN AUSTRALIA

Abstract

The oil and gas production sector in Western Australia has grown dramatically in recent years and now represents the largest resource sector in the State economy. The industry has a very promising future but it faces a number of challenges if it is to achieve its full potential. Its production location in remote parts of the State confers both advantages and disadvantages. Chief among the disadvantages is the challenge of convincing the community and government of the benefits from the industry when many of those benefits are not apparent to the majority of the population. The emphasis in this paper is on economic impacts, social benefits and community attitudes.

WA has produced about 820 million barrels of oil and 2000 million barrels of natural gas when gas is calculated in energy equivalent terms. Petroleum energy production has increased dramatically over the last 15 years and the State is now a substantial energy exporter. Petroleum sources provide the energy for over 85% of the final energy used in the State. Total industry investment over the last 18 years has been nearly $21,000 million for an average of $3.2 million each day. Direct employment by petroleum companies is around 2,500 people with flow-on employment in the services sector estimated at over 17,000 people. Petroleum companies have been major contributors to government revenue and to the development of remote regions in WA.