06 Mar 2012
The peak body representing Australia’s oil and gas industry says the Strategic Regional Land Use Policy released today by the NSW Government will only increase the heavy regulatory burden the coal seam gas (CSG) industry faces on a day-to-day basis.
The Australian Petroleum Production & Exploration Association’s (APPEA) Chief Operating Officer – Eastern Region, Rick Wilkinson, said: “The CSG industry operates in two states in Australia and we are seeing very different stories unfold.
“Right now in Queensland, the gas industry employs 12,000 people. We are recruiting almost 100 new workers every week, and we are investing $30,000 a minute. In Queensland, the industry is offering unprecedented growth and opportunity.
“And in NSW, the industry is becalmed. CSG is struggling to even get off the ground and policies such as the one unveiled today make it harder, not easier, for NSW to develop the cleaner energy source it needs for the future.
“CSG is already one of the most regulated industries in Australia and this policy will only add to that heavy burden.”
NSW today imports around 95% of the gas it uses, meaning the development of a NSW gas industry would make a major contribution to the state economy.
Analysis from ACIL Tasman finds that a growing NSW gas industry would:
- Reduce wholesale electricity prices in NSW by 3.6% on average over the period to 2021.
- Reduce wholesale gas prices delivered to Sydney by 8.4% on average over the period to 2021.
- Increase NSW Gross State Product by $7.7 billion over the period to 2021.
- Increase real income in NSW by $9 billion over the period to 2021.
- Create 2,011 annual full-time equivalent positions on average over the next ten years.
- Increase NSW Government revenue by $480 million over the period to 2021.