Increased Oil and Gas Activity Boosts SA Finance
The State Government’s recent Mid-Year Budget Review (MYBR) has underlined the importance of the resources sector to the South Australian economy according to the South Australian Chamber of Mines and Energy (SACOME).
SACOME says the MYBR anticipates a $155 million increase in royalty revenues over the forward estimates off the back of higher petroleum production volumes and prices.
Chief Executive Officer, Rebecca Knol said the increase in production volumes and prices is positive news for the oil and gas sector.
“In addition to employing over 26,000 people directly and indirectly, the resources sector now delivers $5.8 billion in exports, $6.4 billion in production value and $1.3 billion in royalties for South Australians, making it an economic powerhouse,” she said
“These economic outcomes highlight that the resources sector is not an optional sector in South Australia. Rather it’s a key pillar of our economy and pivotal to our economic health.”
Ms Knol said the royalties generated over the next three years would be enough to clear the state’s current road maintenance back log of $723 million.
The state has 22,500km of arterial and local roads that are crucial to the economic supply chain and the Marshall Government’s growth agenda.
“These positive export and royalty revenue figures confirm the need for Government and industry to strategically consider infrastructure requirements to assist existing operations to expand and to develop new discoveries,” she said.
“SACOME is committed to assisting the State Government achieve its ambitious 3% growth target, noting this relies on investment in our economic infrastructure.”
Media contact:
Rebecca Knol, CEO SACOME, 0409 012 007
About SACOME
The South Australian Chamber of Mines and Energy is the peak industry association representing companies with interests and connections to the South Australian resources and energy sector.
SACOME says the MYBR anticipates a $155 million increase in royalty revenues over the forward estimates off the back of higher petroleum production volumes and prices.
Chief Executive Officer, Rebecca Knol said the increase in production volumes and prices is positive news for the oil and gas sector.
“In addition to employing over 26,000 people directly and indirectly, the resources sector now delivers $5.8 billion in exports, $6.4 billion in production value and $1.3 billion in royalties for South Australians, making it an economic powerhouse,” she said
“These economic outcomes highlight that the resources sector is not an optional sector in South Australia. Rather it’s a key pillar of our economy and pivotal to our economic health.”
Ms Knol said the royalties generated over the next three years would be enough to clear the state’s current road maintenance back log of $723 million.
The state has 22,500km of arterial and local roads that are crucial to the economic supply chain and the Marshall Government’s growth agenda.
“These positive export and royalty revenue figures confirm the need for Government and industry to strategically consider infrastructure requirements to assist existing operations to expand and to develop new discoveries,” she said.
“SACOME is committed to assisting the State Government achieve its ambitious 3% growth target, noting this relies on investment in our economic infrastructure.”
Media contact:
Rebecca Knol, CEO SACOME, 0409 012 007
About SACOME
The South Australian Chamber of Mines and Energy is the peak industry association representing companies with interests and connections to the South Australian resources and energy sector.