Australia offers a broad range of investment opportunities in the energy and resources sector through its abundant and diverse mineral and energy resources, sophisticated equipment, cutting-edge technology and services industry, and strategic partnership with the growth markets—these make Australia.
Australia also has a long history of oil and gas production and progressive development of its substantial reserves, making it a global key player in this sector. With an earning of A$28.7 billion in 2013–14, oil and gas exports play a substantial role in the economy of the country.
The International Monetary Fund is anticipating that Australia will achieve an average annual real GDP growth of 2.8% between 2013 and 2019. This is the highest forecast by far among major advanced economies. The resources alone account for around 60% of total goods and services exported. It is also forecasted that the export earnings will increase by 8 percent annually from 2013-2014 to total A$284 billion in 2018–19.
Wealth of Resources
Australia is abundant with mineral and petroleum deposits, and its comprehensive geoscience data provide investors with exploration, operations and maintenance opportunities. A substantial pipeline with 25- to 50-year life cycles ensures sustainability in mining, oil, and conventional and unconventional gas production investments.
Ready Government Support
The Australian, state and territory governments have developed policy and regulatory framework to facilitate the increased international investment and participation in mining, oil and gas projects. Eligible companies can also avail of exploration and research and development (R&D) tax concessions.
Investors who plan to invest in Australia can collaborate with some of the world’s biggest mining and oil and gas companies, as well as their suppliers across the globe, that have longstanding operations in Australia. There is a demand in the sector for maintenance and operations firms that can improve productivity and cost competitiveness within the sector.
Research & Development
Australia is concentrating dedicated efforts for the resources and energy sector. Various institutions are in a serious business of researching and developing highly effective methods to enhance the resources productivity, and investors can collaborate and share in the research outcomes.
With mature research links, free trade agreements, and a strong logistics and shipping network, exporters from Australia has access to the high-growth Asian markets. Australia serves as an excellent base from which to export commodities, services and technologies. For more than a decade, the resources and energy sector has added value to the economic growth of Australia. The resource industries of the country are anchored on world-class expertise and technology in exploration, development, production, processing and environmental management.
Facts & figures
Here are some facts and figures on the resource and energy sector of Australia: In 2012–13, the resources and energy industry is accounted for around 10 per cent of the country’s GDP. The industry also earned A$175.9 billion in export income, which represents 58.5 per cent of Australia’s total export income. It employed 266,000 people or 2.3 per cent of the national workforce. It generated A$12.7 billion in new private capital expenditure, up 15.5 per cent on 2011–12. And invested A$7.1 billion in minerals and petroleum exploration.
Australia’s Oil and Gas
To businesses that seek investment opportunities in Australian oil and gas, Australia offers significant oil and gas reserves. Investors can have access to the rapidly growing Asian energy markets. The country also provides investors a supportive environment for exploration with access to comprehensive geoscience data. Investors can also enter the global supply chain of multinational oil and gas companies. They will also have access to leading research and development and innovative oil and gas technologies.
The Economic Demonstrated Resources (EDR) of conventional gas of Australia were estimated at 110,120 petajoules (2.83 trillion cubic metres). In view of the current production rates, the EDR of conventional gas are projected to last another 51 years. Carnarvon, Browse and Bonaparte basins off the coast of Western Australia and the Northern Territory holds around 92 per cent of Australia’s conventional gas resources.
In the past three years, the EDR for coal seam gas (CSG) has doubled to an estimated 45,013 petajoules (1.16 trillion cubic metres) at the end of 2013. An estimated 223,454 petajoules (5.75 trillion cubic metres) of identified resources of CSG is predominantly in the large coal basins of Queensland and New South Wales. Australia also ranks 7th in the world go recoverable shale gas, which can potentially add another century to the nation’s gas supply. Shale gas and tight gas have attracted exploration activities in South Australia, Western Australia and the Northern Territory.