PERTH (miningweekly.com) - The Australian Petroleum Production and Exploration Association (Appea) has reiterated its call for the Australian government to implement a number of reforms in this year’s federal budget to improve the investment environment for the oil and gas sector.

Speaking at the Australian Domestic Gas Outlook conference, Appea CEO Andrew McConville noted that there was an enormous opportunity to create thousands of jobs and help Australia reach zero net emissions by 2050.

“Sadly, vested interests have spread misinformation on gas and it is time to set the record straight because the fact is demand in South East Asia for gas is forecast to double by 2040 and we need to able to capitalise on that,” McConville said.

“If we get this right, then the prize for Australia is immense. We need to be bold again in Australia and get the policy settings right for investment.

“In the first decade of the new millennium, decisions were made that meant policy stability and more than A$450-billion was invested in Australia’s oil and gas industry and tens of thousands of jobs created.

“This year’s federal budget is an opportunity to pull the right levers and get fiscal settings right.”

Appea has suggested reforms that would make it clear that salary and wage costs would be immediately deductable, improve investment allowances to attract investment, and remove barriers to business project restructuring through providing tax asset rollover relief.

McConville also recommended that the federal government should amend the Petroleum Resource Rent Tax (PRRT) Assessment Act to link a petroleum project to a production licence where a production licence may revert to a retention lease, and should close out the PRRT Gas Transfer Pricing Review without change.

“Make these changes and the jobs will flow,” he said.

“A recharged oil and gas industry will stimulate growth in other industries and every additional person employed in oil and gas can support up to 10 other jobs and innumerable small businesses.”

McConville pointed to a recent Ernst & Young report, commissioned by Appea, which showed under the right investment settings, the oil and gas sector could provide a A$350-billion boost to the economy and more than 220 000 jobs over the next two decades.

McConville also outlined how natural gas will be vital in reducing Australia’s emissions and supporting a cleaner energy mix.

“Using more natural gas in Australia’s power generation and resource processing can further reduce emissions,” he said.

“Natural gas plants are more reliable and longer lasting than battery storage and produce much lower levels of noxious substances such as sulphur dioxide, nitrogen oxides and fine particle emissions compared to coal.”