The Australia Institute made a submission to South Australia’s Natural Resources Committee Inquiry into unconventional gas. Our submission focuses on the potential net economic outcomes to the region and the rest of the state.

The net economic effects of gas development in South Australia are likely to be small:

• There would be minimal impact on gas prices as South Australia is connected to the East Coast gas market and through it to world markets.
• There would be minimal impact on employment as the gas industry is a very small employer.
• There would be minimal impact on government revenues as royalties are a small part of government revenue.

Furthermore, the impacts of unconventional gas for other local industries and communities are often negative. A detailed study of the Darling Downs in Queensland has shown a deterioration of local capital and increased costs.