“We have no intention of resting on our laurels in Western Australia,” APPEA executive director Barry Jones said yesterday.
"There is more oil to be found in and off the state and this will generate a major national balance of trade benefit."
APPEA is the Australian body representing the upstream oil and gas industry and is celebrating the 10th anniversary of its presence in Western Australia.
There are about 900 companies with a total of 19,000 emplyees in Western Australia that depend on the oil and gas industry.
Revenues from oil and gas to the Western Australian government rose from $A113.2million in 1994/95 to $A416.3 million in 2003/04 – a $A3 billion revenue stream, Jones said.
“A major economic stimulus has been provided to Western Australian businesses,” he said.
There was more on the way in the future as more than 5,500 construction workers were employed or would be employed in major current and planned oil and gas projects.
“Already, two and possibly three new liquid natural gas hubs are under consideration with a total estimated value of $A17 billion,” Jones said.
In 1995, APPEA’s objectives were facilitating development of WA’s petroleum resources and ensuring the state’s and Australian service companies got maximum whole-of-life benefit from new developments.
It also wanted Perth promoted as a petroleum capital and as a regional centre of petroleum education and research excellence.
But APPEA chose not to follow a high public profile strategy to do this and instead developed constructive relationships with government and representatives of all political parties, Jones said.
“The association sought to influence policy by providing government with sound, informed, factual information and by informing political stakeholders and the community of the industry’s achievements."
Jones said APPEA and its member companies believed they had achieved success over the past decade with liquids production in Western Australia increasing from 79 million barrels to 113 million barrels, valued about $A5.5 billion a year.
Some of this is used at the Kwinana Refinery to produce 40% of Western Australia’s transport fuel needs.
“LNG production has risen from 6.9 million tones per annum (Mtpa) in 1995 to 8.4 Mtpa in 2004 and is projected to grow to around 27 Mtpa by 2010,” Jones said.
Domestic gas usage has expanded from 181 petajoules per year in 1995 to 301 PJ per year currently.
“Natural gas will continue to provide an environmentally attractive fuel both as a source of direct energy for minerals processing plants and mines and also in electricity generation,” Jones said.
CSIRO moving its Petroleum Division to Perth, the creation of the Australian Resources Research Centre at Curtin University and the establishment of the WA Energy Research Alliance showed the state’s importance, he said.