APPEA director for WA and the NT, Don Sanders, said the newly announced strategy - Western Australian Hydrocarbon Industry: building a strong future – was welcomed by the Association’s member companies.

“While the upstream oil and gas industry obviously has to deliver returns to its shareholders, it must also be remembered that each year the industry delivers huge benefits to the WA community through production royalties and other taxes,” Sanders said.

“In announcing the Government’s plans, Minister Clive Brown has certainly hit the nail on the head by describing oil and gas exploration and production as a significant contributor to the economic development of Western Australia.”

Mr Sanders said APPEA had helped Brown to put together an oil and gas summit which was held in WA’s Parliament House in February 2004.

“The input provided by a range of senior representatives from APPEA member companies encouraged the WA Government to establish the Oil and Gas Industry Coordinating Council,” he said.

Discussions held between senior members of the oil and gas industry, the state government and relevant unions at the Oil and Gas Industry Coordinating Council, had helped the government and unions understand the challenges facing the state's oil and gas industry, according to Sanders.

Many of the initiatives outlined in the government's plan were designed to help address some of those challenges, he said.

“Once the recommendations provided by the Government-sponsored 2002 Keating Review are fully implemented, oil and gas companies will have a better, more efficient project approvals system," Sanders said.

"This will hopefully reduce project delays and maybe encourage other companies to develop the State’s resources.”

Sanders said APPEA also hoped to see joint venture approach to addressing the current skills shortage in the oil and gas industry.

“The oil and gas industry is working with the government to encourage more young people into apprenticeships and traineeships through a group apprenticeship scheme,” he said.

“As well, we are seeing strong Government support for research and development in oil and gas – as evidenced by the recent awarding of $20M of government funding to the WA Energy Research Alliance.

“The potential for breakthrough technologies and innovative processes developed during programs conducted by WAERA is exciting."