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“Quicklook” Assessment of Greater Adelaide's Assets & Challenges ...

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MINERALS INDUSTRY, INCLUDING OIL AND GAS<br />

Interview Team<br />

• David Schieck, Team Leader<br />

• Amy Blakely<br />

• Anna Hardesty<br />

• Kevin Hudson<br />

Who we met with<br />

The team’s main interview session was held on Wednesday, July 11 th with<br />

representatives from: Adelaide Resources NL, Beach Petroleum, Geosurveys, Minotaur<br />

Exploration PTY LTD, and Southern Titanium NL. Dr. David Blight, Executive Director<br />

Office <strong>of</strong> Minerals and Energy Resources hosted the session.<br />

The South Australian minerals industry is composed <strong>of</strong> mostly smaller companies. They<br />

utilize technology extensive for their exploration and development endeavors. The<br />

sources <strong>of</strong> the majority <strong>of</strong> this technology are an extensive network <strong>of</strong> service companies<br />

and universities.<br />

On the positive side there appears to be extensive minerals and oil and gas reserve<br />

potential in South Australia. Also, the active companies are by nature risk takers that<br />

have extensive experience operating in the State. There are though, three major issues<br />

that the industry faces: access to land, access to money, and access to water.<br />

Opportunities<br />

• The Industry should continue their concerted efforts to develop a working<br />

relationship with Aborigines for access to land. Opportunities for Industry include new<br />

exploration potential. Opportunities for Aborigines include employment, community<br />

development assistance, education/skill enhancement and additional income<br />

sources.<br />

• Should initiate a feasibility study <strong>of</strong> the relative value <strong>of</strong> vertical integration to<br />

further process the raw materials produced in the State. This could help attract<br />

outside investment for all phases <strong>of</strong> the Industry. (SA Universities could be <strong>of</strong> help in<br />

an effort <strong>of</strong> this type.)<br />

• SA Universities should continue to look for ways to support the Industry,<br />

especially in regard to R&D <strong>of</strong> techniques to best solve local exploration and<br />

development issues like water use and access and salt cover.<br />

• There were indications that some companies were finding ways to attract local<br />

investment funds. Their success should be looked to, as an inspiration for others and<br />

their methods should be copied if possible.<br />

• The Industry should consider possible community education programs and other<br />

approaches to increase their recognition and acceptance. Programs and approaches<br />

used by some <strong>of</strong> the US organizations, like the Interstate Oil and Gas Compact<br />

Commission (IOGCC), American Petroleum Institute (API), and the Independent<br />

Petroleum Association <strong>of</strong> America (IPAA), could serve as references.<br />

Facilitators<br />

Resources<br />

• SA’s current mineral exports <strong>of</strong> $1.8B are second only to wine.<br />

• Based on reconnaissance studies, significant amounts <strong>of</strong> undeveloped mineral<br />

resources, including oil and gas, are believed to be available.<br />

• SA’s hydrocarbon production is split about 80/20 between gas and oil.<br />

COMMERCIAL IN CONFIDENCE<br />

103

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