Oil and gas industry contributed $28.3bn to the economy last year

A report commissioned by the Australian Petroleum Production and Exploration Association (APPEA) says the oil and gas industry contributed about $28.3 billion to the Australian economy in 2010/11, representing about 2% of the national economy. Some $24 billion was due to core oil and gas reserve operators, while the remaining $4.3 billion was from industries such as exploration support and professional services, maintenance and construction, transport and storage, and wholesale trade, the report said.

Capital expenditure on the major oil and gas projects was expected to peak at $39.2 billion in 2013, the report said, before falling in the following years as those projects started producing.

"Hence, as the sector moves into an operational phase, it is likely that higher output growth will also lead to higher future economic contributions," the report said.

The output from new oil and gas sites was expected to rise by more than $35 billion between now and 2017/18, according to the Deloitte report.

Source: AAP