What kind of hogwash is this leading the AFR?
The $500 billion a year economic benefit the oil and gas industry provides to Australia could be at risk if an incoming government is taken over by “misguided” politics, the new chairman of the industry lobby group has warned.
“It would be an awful shame to not have that benefit go to Australia because of some misguided politics or some misguided issues around how politics is formed after the election,” Ian Davies said on the sidelines of the Australian Petroleum Production & Exploration Association conference in Brisbane, where Saturday’s election outcome was a central topic.
“The focus of our opponents on stopping fossil fuel projects has had no effect on consumer demand, and no effect on emissions’ reduction,” he said in his speech to the conference. “What it has done is to push fossil fuel developments to places such as the Middle East and Russia.”
Mr Davies was joined by other oil industry leaders who voiced caution on the risks to Australia’s energy security and a further hit to prices should the election result in a minority government that bends to demands to clamp down on investment in new supplies of oil and gas needed amid the global energy crisis.
$500bn is one-quarter of the Australian economy. The reality is that the oil and gas sector contributes 10% of that number to GDP, around $50bn or 5% of the economy. It is 14th out of the 19 major sectors and contributes less than real estate agents (see green line below):
Moreover, the reality is a lot worse. Half of the growth surge of oil and gas extraction over the past decade was driven by QLD LNG. That component of oil and gas has resulted in a calamitous and near-ceaseless energy shock for the entire east coast economy becasue the gas export cartel sells cheap Aussie gas in Asia while the price is forced up at home by shortages.
In short, oil and gas has used cartel tactics to steal about 2% of Aussie GDP from everybody else while adding nothing whatsoever. In addition to this, it pays no tax!
The political and media fear and loathing that surrounds this parasitic industry is a case study in Banana Republic economics to make your hair stand on end.
