According to the numbers, the strong dollar resulted in the reduction of value of the country’s resource sector sales from A$27.3 billion to A$26.6 billion, a 3% drop.
In the oil and gas sector, the drop translates into a 5% fall in the aggregate value of petroleum sales - down to around A$9,695 million. This fall has been attributed to an 8% drop in the volume of crude oil sales (brought about by reduced production from mature fields) and the slight fall in the oil price in Australian dollar terms. However, this fall has been offset by the improved performance of LNG sales that saw sales volumes rise by 4%.
Despite the foreign exchange impact, the DoIR maintains a positive outlook, driven by continued strong demand and the relative importance of the petroleum and minerals sector in Western Australia.
According to DoIR Director General Jim Limerick, “[We cannot underestimate] the importance of the petroleum and minerals sector to the Western Australian economy.”
“Our resources sector constitutes about 75% of the State’s exports, around 25 per cent of the Gross State Product, and over the past 10 years, has grown at 8% per annum,” added Dr Limerick.
