Economic benefits

The Queensland gas industry

Queensland coal seam gas is being used in both domestic and in export markets.

Coal seam gas produced from inland Queensland gas fields is being piped to the port city of Gladstone where it is transformed into liquefied natural gas (LNG) for export via purpose-built ships.

At its peak, the Queensland gas industry has created more than 40,000 jobs, and it currently employs about 20,000 people. This total includes direct employees and contractor jobs. The multiplier effect across the state economy is much larger.

The Australian gas industry

The oil and gas industry contributes substantially to Australia’s current prosperity in many ways, including:

  • investment (currently contributing more than a third of Australian business investment)
  • direct and indirect job creation
  • regional development
  • export revenue
  • taxation
  • energy security.

The Australian oil and gas industry is today building almost $180 billion worth of projects. Further development of Queensland and NSW coal seam gas resources would help underpin further expansion of gas production for domestic and export purposes.

A Deloitte Access Economics report, Advancing Australia, shows that:

  • More than a third of current business investment in Australia is in the natural gas sector.
  • Over the investment phase, it is estimated that the industry will create about 103,000 (full-time equivalent) jobs across the Australian economy.
  • Companies all over Australia are supplying goods and services to the oil and gas industry, and the use of fly-in, fly-out staffing is spreading the benefits of the industry across Australia.
  • The oil and gas industry directly and indirectly represents around 2% of current GDP, with value added of about $28.3 billion in 2010-11.
  • The sector’s economic contribution to the national economy will more than double to $65 billion in 2020.

In 2011-12, the Australian oil and gas industry paid $8.8 billion in taxes ($4.8 billion in corporate taxes and $4 billion in production taxes). This is forecast to reach almost $13 billion in 2020. At a time when government revenues are under pressure, the oil and gas industry’s contribution is very important to the nation’s economic wellbeing.