Australia’s Gas Boom Very Good for Economy, But Brace for Labor Shortage
Australia is set to ride on a massive natural gas boom that will surely propel the nation to a new level of economic heights, but it ought to drumbeat its labor supply as early as now to aid this development.
In an analysis Written by the Deloitte Access for the Australian Petroleum Production and Exploration Association (APPEA), it said that investments in liquefied natural gas (LNG) by 2016 will add 2.2 per cent to Australia's gross domestic product growth, making the island-nation the world's second-largest exporter of LNG.
But the report cautioned Australia many projects likewise stand to face hurdles as far as number of workers is concerned.
At present, there are 14 gas liquefaction plants under construction around the globe. More than half, or specifically eight, are in Australia. They compose more than 64 per cent of all Australian investment if all fully succeed and go online.
In numbers, they refer to $185 billion worth of new projects.
"The economic consequences of this are overwhelmingly positive for Australia," David Byers, APPEA Chief Executive.
The nation's LNG sector's contribution to the national economy from present to 2025 will be motivated by the rapid growth in installed capacity, which is forecast to double to $65 billion in 2020 and $60 billion in 2025, the report said.
To support this boom, Australia need more workers, otherwise many large-scale projects might struggle and get delayed. Thousands of workers need to be flown in from overseas to overcome the shortage.
"This once-in-a-century resources boom could yield an economic dividend well into the future or be seen, in retrospect, as an opportunity at least partially wasted," the report said.
"Harnessing Australia's prodigious comparative energy advantage and spreading the economic benefits of the resources boom widely within the community, represent the single most important policy challenge for governments."