“LNG is going to be a very large contributor to GDP growth this year, but in particular in 2016 and 2017. And not only that, but then the maintenance and the service industries that come along with such an industry will create jobs.”
Dr Keith Suter, foreign and international affairs editor and foreign policy analyst at Sky TV, continued the global outlook theme for the day, outlining the geopolitical implications of the United States’ “shale revolution”, OPEC’s decision to maintain supply levels during the oil price glut, Iran petroleum production implications on the Middle East, and the role of Russia and Australia in the scheme of things.
He concluded that while the low oil price is a consequence of OPEC’s decision to maintain supply in the face of a resurging US energy production market in the shale revolution, the global slump may in fact help Australia in the long run.
“Australia and the region are export reliant economies. They need a flourishing global economy to ensure their own guaranteed, long-term survival,” he said.
“Now, the lower oil price is actually a good thing in that it is helping China transition into its consumer based economy, and helping Australia to trade with them on other levels such as tourism and education.”