The Resources and Energy Quarterly September 2020 released today confirms the ongoing critical role resources exports will play in supporting the recovery of the Australian economy as it emerges from the COVID-19 global pandemic.
According to the Department of Industry, Science, Energy and Resources, the value of Australia's resources and energy exports set a record of $290 billion in 2019-20. Liquefied natural gas (LNG) exports have more than doubled over the last few years and are contributing significantly to Australia's economic resilience. LNG is now Australia's second largest export after iron ore, with export value estimated at $47.6 billion in 2019-20.
APPEA Chief Executive Andrew McConville said the report highlighted the significant role LNG exports are playing in sustaining Australia's economic resilience, maintaining living standards and in helping to lower global greenhouse gas emissions.
Mr McConville said that challenges however remain, with resource exports forecast to decline to $256 billion in 2020-21 as the adverse economic effects of COVID-19 are felt. The value of LNG exports is expected to fall to $31.2 billion in 2020-21 reflecting lower oil prices and reduced demand.
"Like many industries, Australia's LNG export industry is experiencing unprecedented challenges with low oil prices, constrained demand and growing LNG export competition. Despite these challenges, it will continue to play a significant role in Australia's economic recovery as we come out of the COVID-19 global pandemic."
APPEA's recently released investment blueprint Powering Australia's Recovery outlines steps government and industry can take to stimulate investment, create jobs and recharge industries, including the oil and gas sector. The blueprint identifies the much-needed initiatives and actions that will fast-track economic recovery, stimulate local and regional communities and generate revenue for government, helping get Australia back on its feet.
"For decades, our industry has contributed to our national economic growth, but there have been no new LNG projects approved since 2012 and we risk losing future investment. The Resources and Energy Quarterly Statement provides some early indicators of the challenges we will face in the months ahead. We must act now to restore and maintain investor confidence, or lose the opportunities our abundant natural resources can provide the nation as we look to economic recovery," Mr McConville said.
Read the Resources and Energy Quarterly report.
