The oil and gas industry is doing a good job of talking up its contributions to the Australian economy.
The Australian Financial Review has repeated claims by oil and gas peak body APPEA that their industry is a $500 billion benefit to the economy. In reality, ABS data shows the total oil and gas industry’s value is $33.8 billion.
The oil and gas industry is largely foreign-owned so outside of salaries paid in Australia most benefits of the industry’s activities go offshore. This is especially true given the extremely minimal tax paid by the industry, paying zero income tax and minimal amounts of PRRT on vast revenues.
If all industries made the same claim, it would add up to 15X the actual value of the Australian economy according to economist Mark Ogge.
Callum Foote is a journalist and Revolving Doors editor for Michael West Media. He has studied the impact of undue corporate influence over Australian policy decisions and the impact this has on popular interests.