Oil and gas conquer future major resource projects propels the economy

Australia’s oil and gas industry has arisen as the prevailing driver of nation-building new assets projects, making new positions and drawing in billions of dollars of expenditure in Australia.

The Australian Government’s Resources and Energy Major Projects 2023 report said 12 oil and gas projects represented $36 billion of speculation of the $77.4 billion pipeline.

Lithium and iron metal each addressed $7.2 billion worth of committed projects, gold represented $6.6 billion and coal was behind $4.6 billion of ventures.

Just a single new oil and gas project reached the final investment choice in the year to November 2023.

“The pipeline of mining and critical minerals projects will also rely on natural gas supply, with AEMO forecasting resource projects will add a further 23 TJ/day to gas demand in Western Australia by 2026,” said Australian Energy Producers Chief Executive, Samantha McCulloch.

Just a single new oil and gas project reached the final investment choice in the year to November 2023.

“Australia’s oil and gas continues to power the national economy, creating jobs and delivering billions of dollars of investment, much of it into regional communities.

The pipeline of new gas projects highlights the importance of policy settings and regulatory certainty to unlock investment in new supply.

With Australia facing energy shortfalls on both coasts, new gas supply is urgently needed to avoid blackouts and put downward pressure on prices while securing future economic benefits,” McCulloch added.

The report likewise found developing interest in hydrogen projects however with just three out of 76 arranged projects arriving at the serious stage in 2023, addressing a capital use of $234 million.

“Natural gas combined with carbon capture, utilisation and storage (CCUS) is today the most affordable and mature pathway to scale-up low-carbon hydrogen production.,” Ms McCulloch added.