For the Australian oil and gas industry the budget was largely a positive.
For the Australian oil and gas industry the budget was largely a positive.

Gas, oil given a boost in Federal Budget

THERE are plenty of people with plenty to say about the Federal Budget. Most of it isn't too flattering.

For the Australian oil and gas industry, however, the budget was largely a positive one.

Industry leaders have called the budget an important first step toward improving fiscal sustainability and more importantly, driving long-term economic growth, which of course means new jobs.

The budget highlighted major LNG projects currently under construction and their projected contributions to the national economy and also recognised supply challenges facing the industry, with exports set to double by 2015-16.

Australian Pipeline Industry Association chief executive Cheryl Cartwright said the industry needed to see a growing economy, as in turn it means a growth in businesses within the oil and gas sector.

"We don't rely on government handouts or assistance, so a strong private sector and increasing demand for energy would be good for our industry," she said.

Similarly, Australian Petroleum Production and Exploration Association chief executive David Byers said the budget would encourage investment in the sector, spurring new job creation.

"The critical role that Australia's oil and gas industry can play is through investment in the next phase of projects currently under review," Mr Byers said. "There is no simple or single solution that will ensure that Australia captures a new wave of growth and prosperity."

Meanwhile, the finalisation of the US$10 billion funding package for the Roy Hill iron ore project in Western Australia and the development of the Ichthys project have seen the mining and resources job index post its first positive result for the year.

According to the Index, compiled by DFP Recruitment, the strongest performing sector remains oil and gas, seeing an increase of 4.8% in what has been an otherwise slow start to the year. According to DFP, momentum appears to be gathering.

DFP believes the industry in general will benefit from further exploration and the proving up of viable economic resources.

"It is very positive to see the index indicate an increase in opportunities within the exploration sector as the industry welcomes an increasing trend moving forward," the report says..