IN WESTERN AUSTRALIA - Department of Mines and Petroleum

The oil and gas industry is a significant contributor
to the economic development of Western Australia
and is the State’s largest resource sector, with total
petroleum sales in 2002–03 of more than $10
billion, or 37 per cent of the total value of the
State’s mineral and petroleum sales, and annual
exports of $7.8 billion in 2002–03 (Figure 1).
The industry directly employs over 13,000 people in
Australia. Around 900 Western Australian service
and contracting companies are involved in the
industry.
The oil and gas industry has enormous potential,
with increasing demand for LNG in the USA, China,
Korea and Japan, as well as opportunities for
further downstream processing in WA. Gas is also a
major source of energy for the State in electricity
generation, minerals processing and service
provision.
Gold
12%
Iron ore
20%
Alumina
11%
Nickel
9%
Others
11%
Petroleum
37%
Minister’s Message
Western Australia is increasingly becoming a major
player in the global oil and gas industry. This
position is predicated on a number of strategic
advantages.
First, WA has significant petroleum reserves, with
our already world-class natural gas reserves
expected to increase substantially with further
exploration and advances in technology.
Second, WA has a strong record of meeting supply
commitments, led by Woodside’s faultless record in
the export of LNG to Japan over the last two
decades. This record contributes to Western
Australia’s reputation as a low sovereign risk
environment.
Third, WA is proximate to many of the world’s
fastest growing economies, making us ideally
placed to both meet their energy needs and assist
them in developing their own oil and gas industries.
Crude Oil
41%
Natural Gas
6%
Condensate
19%
LPG - Butane
2%
LNG
30%
LPG - Propane
2%
Figure 1. Western Australia Resources Sales 2002-03 - $A27.9 billion (Graphic source: DoIR)
PWA April Edition - Minister’s Message
Hon. Clive Brown,
Minister for State Development Western Australia
Fourth, WA has a high quality and diverse skills
base, with our traditional trades skills
complemented by growing expertise in engineering
design, engineering construction and fabrication.
Fifth, WA is a wonderful place in which to live and
do business. We have a high and affordable
standard of living and a warm and welcoming
society.
The challenge for WA is to take advantage of these
strategic advantages and continue to become a
major player in all levels of the oil and gas industry.
We have to utilise WA’s strategic advantages and
the current boom in projects to develop local service
and supply capabilities. It is for this reason that I
organised the Summit on Maximising Western
Australian Business and Employment Opportunities,
which was held on Friday 27 February 2004 in the
Legislative Assembly of the Western Australian
Parliament.
My vision is for a local support industry that will be
able to provide competitively priced services and
supplies not only to our local Western Australia
projects but also to the Asia Pacific region.
Over 60 representatives of Industry, Government
and the Unions attended the Summit to discuss
ways to maximise the benefits to Western
Australians from the State’s major oil and gas
projects. It was a common view of those who
attended that all parties should work together to
maximise the business and employment
opportunities. It was also a common view that
ongoing communication and the building of trust
between the key stakeholders were essential if
progress was to continue.
The major outcome of the Summit was the
establishment of a new Coordinating Council which I
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