Photo by: Bloombeg
PERTH (miningweekly.com) – The Australian government would invest A$15.4-million over the next four years to establish the Oil, Gas and Energy Resources growth centre.
Industry, Innovation and Science Minister Christopher Pyne said on Wednesday that the new growth centre, dubbed National Energy Resources Australia (Nera), would drive innovation, competitiveness and productivity across the oil, gas, coal, coal seam gas and uranium sectors.
“This growth centre will focus on harnessing the sector’s existing competitive strengths, embracing innovation and putting research to work,” Pyne said.
“The growth centre will work closely with researchers from universities, CSIRO and Cooperative Research Centres to build links with business and industry organisations. Importantly, it will also promote industry-led research in priority areas by facilitating deeper engagement between industry and researchers.”
Energy, Resources and Northern Australia Minister Josh Frydenberg said the growth centre would help position Australia’s energy and resources sector for the next wave of investment.
“Australia’s energy and resources sectors make a vital contribution to the Australian economy. During this challenging time, the growth centre will drive collaboration and innovation, and direct research to industry needs, ultimately improving productivity to ensure Australia remains globally competitive,” Frydenberg said.
Growth centre chairperson Ken Fitzpatrick told delegates at the Australasian Oil and Gas conference on Wednesday that while the sector currently punched above its weight, generating about A$66-billion worth of export earnings this year alone, and growing to A$97-billion over the next four years, the industry was still faced with a number of challenges, including low commodity prices, high capital and operating costs and community opposition to development.
“We want to enable growth through collaboration, innovation and knowledge sharing, and through a national focus improve competitiveness, collaboration and productivity for the Australian resources sector,” Fitzpatrick said.
He noted that over the past 25 years, Australia’s competitive position has been slowly declining, compared with other Organisation for Economic Cooperation and Development countries, as other nations reformed their economies, while Australia remained stagnant.
“We need to reduce the cost of doing business, strengthen networks and linkages, and improve the innovation system as a whole.”
The Australian Petroleum Production and Exploration Association (Appea) has welcomed the launch of the growth centre, saying it came at a critical time as Australia looked to build on a period of unprecedented growth in the oil and gas sector.
Appea CEO Malcolm Roberts said Nera had an important role to play in supporting innovation, collaboration and productivity across the industry.
“[The] announcement recognises the importance of the oil and gas sector to the Australian economy,” Roberts said.
“The investment of more than A$200-billion in new gas projects will see Australia emerge as the world’s largest exporter of liquefied natural gas (LNG) by 2018.
“Nera’s focus on innovation, collaboration and productivity in order to reduce costs and improve Australia’s global competitiveness is welcome. This is absolutely essential if Australia is to maximise the benefits of the current wave of new LNG projects and position itself as a low-cost destination for future investment.”