The energy debate was not grounded in facts or reality and was why the Chamber of Commerce and Industry WA commissioned independent research to present the real picture, the Energy Exchange Australia conference was told this month.
In a keynote address to the conference, CCIWA Chief Economist Aaron Morey said the review was developed with input from independent consulting firm Australian Venture Consultants and included a survey of more than 850 businesses.
“If we don’t bring on new sources of supply, we are going to be facing significant shortages,” Mr Morey said.
He said that the report found that if WA faced the same gas prices as the Eastern States, the State’s economic activity would be slashed by up to $42 billion, government revenue would drop by $2.9 billion, and job losses could hit up to 45,000 workers.
Mr Morey said WA needs the North West Shelf gas project approved and the “confusion” in offshore approvals addressed.
Releasing the report, CCIWA Chief Executive, Peter Cock said the work highlighted
the need for a regulatory regime and political consensus which supports investment
in gas developments.
“We simply cannot afford to sleepwalk into a gas crisis,” he said.
“Natural gas is the lynchpin of our economy, so it’s time for a fact-based debate on the essential role it plays in WA’s economy today and what the impacts
would be if we don’t support further investment in gas supplies for the future.”
The review shows the critical role gas plays in WA’s mining sector, from powering the machinery that extracts minerals, to processing, milling and smelting.
“Without affordable and reliable gas supplies, WA’s mining sector would simply not be able to operate as it does today,” Dr Cock said.
“Even a modest drop in gas supplies would put significant pressure on mining operations, which would make it more difficult for Australia to maintain its
world leading status as a reliable supplier as well as compete with emerging mineral markets.”
The report also highlights the critical role gas plays as a direct feedstock in chemical manufacturing for things like fertilisers, as well as in the creation of
construction materials like bricks and cement, and in food and beverage production.
“A reduction in gas supply for WA wouldn’t just be an inconvenience – it would cause significant economic and social damage,” Dr Cock said.
“If WA’s gas supply is jeopardised, the impacts would be felt right through the WA economy, impacting the job security and prosperity so many of us enjoy today.”