Gas in WA: the economy

WA is a globally significant gas exporter, but gas is insignificant in the WA economy.
by Mark Ogge

WA is a globally significant gas exporter, but gas is insignificant in the WA economy.

Gas royalties make up just 1.3% of the state budget, less than half the contribution of vehicle registration.

Federal taxes paid by Chevron, Exxon, Woodside and Shell raise less money than beer excise.

Just 0.7% of the state’s workforce is employed in oil and gas extraction.

The gas industry enjoys large public subsidies. According to the WA Government, without its $8 billion in subsidies to the North West Shelf project, the project would not have proceeded. Its support was “massive and integral”. Subsidies continue, particularly through investment promotion and infrastructure provision.

The gas industry clings to its social license by exaggerating its economic benefits and hiding its negative economic impacts. In WA, the industry’s close links to government and media outlets ensure that its spin is rarely contested.

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