ExxonMobil Australia chairman Mark Nolan told delegates the research undertaken by economic modelling firm Econtech highlighted the significance oil and gas production from Bass Strait had on Australia’s national, state and local economies since 1969.

He said the importance of Bass Strait was underlined by the fact that the flow-on effects from its oil and gas production contributed more than $A200 billion to Australia’s gross domestic product over the last four decades, or some $2.2 billion per annum in nominal terms.

“ExxonMobil is proud that its operations in Gippsland and Bass Strait have had an important and positive impact on employment and living standards. Approximately 50,000 permanent additional jobs have been created in Victoria (14,000 in regional Gippsland alone),” he said.

Operations in Gippsland and Bass Strait, added Nolan, have also been responsible for generating around $300 billion in Federal Government revenue in real terms (2.1% of all government revenue collected in the period).

“Bass Strait still has a long-term future. There is a significant oil supply and approximately 7 trillion cubic feet of gas reserves remaining in the basin. We plan to keep on meeting the demand for energy in Australia as well as providing significant benefits to the wider community in which we operate,” Nolan added.

To ensure gas can be developed effectively and compete on an equal basis with other fuel sources, he claimed that government needed to address tax distortions which currently saw offshore gas taxed at more than six times the rate applied to coal.

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