The "clock is ticking" for Australia to address the explosive costs and inadequate productivity impeding its oil and gas sector or it risks losing out on $180 billion in fresh investment over the coming years, warn industry participants.
"Our ability to capture the second wave of liquefied natural gas (LNG) investment is at serious risk from rising competition in the global marketplace," said David Byers, chief executive of Australian Petroleum Production & Exploration Association (APPEA) - an industry association representing companies which explore and produce oil and gas in the country.
"If we're able to remain competitive and attract capital needed to develop these projects we have to reduce the cost of doing business in this country," he said on the on the sidelines of the APPEA conference in Perth.
The oil and gas sector is an important pillar of the economy, creating significant wealth for the country through employment, export income and tax revenue. The sector contributed $8 billion in tax revenue in the financial year ended June 2013, which is set to grow to $13 billion by 2020.