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You are required to choose a topic from the following list. Consult your lecturer if you need more details about each topic. 
1.Discuss Australian GDP components and economic growth during the last 10 years. Which industries have the highest growth and what are the main drivers for that growth? Analyse Australian Government major policies to promote economic growth during that period. 
2.Industry reforms in the Agriculture Industry in Australia during the last 10 years and its impact on Australian economic growth. 
3.Demand and Supply of any natural resources in Australia and their impacts on Australian Economy. 
4.Impacts of the 2008 global financial crisis (GFC) on Australia and how did Australian government use macroeconomic policies to stabilise the economy. 

The Natural Resource Industry of Australia

Demand and supply are one of the integral parts of the economic and the economy of the market that businesses operate in. Demand is the number of products or the service which the customer needs or wants. The quantity if the product or the service demanded will depend on the price that the customers are willing to pay for that product or service. This relationship that is created between the price of the product or service and the demand is called a demand relationship. Whereas, supply is the quantity of the product or service that is available or being offered by the market and the suppliers (Heakal 2015). The quantity of the product or service that is being supplied by the market will depend on the price that is received for the product or service. This relationship between the price and the supply is called as supply relationship. The demand for natural resources have always been prevalent all over the world, and hence the supply has also been high (Chegut, Eichholtz and Kok 2014). This demand and supply of natural resources created a great impact on the economy of every country. The impact that is done on the economic condition of the countries needs to be determined to understand the importance of natural resources in that country. This report will contain a discussion about the demand and supply of natural gas and oil in Australia. The demand and the supply of natural gas and oil that exists in Australia will also be determined in this report. Furthermore, the report will discuss the impacts that the demand and the supply of these natural resources, namely natural gas and oil have created on the economy of Australia from several economic aspects.

The natural resource industry of Australia consists of several small industries which operate in different ways such as processing of the natural resources, mining of those resources or even finding the area with resources and covering the whole area. The mineral or natural resource industry contributes almost 8 per cent to the Gross Domestic Product of the country (Tietenberg and Lewis 2016). The natural resources sector of the industry is among the top producers of minerals and natural resources in the world. Australia has a large reserve of natural resources and the two areas with the most minerals are Queensland and Western Australia. Several resources such as iron ore, lithium, mineral sands and others are found all over the country. Natural resources should be used sustainably so that the future generations can use them as well (Simpson 2014). The proper management of resources is very necessary for the proper utilisation by the industries so that the people are able to use the resources to their advantage optimally. The oil and natural gas industry is among the most common sectors of natural resources. Australia is among one of the biggest exporters of LNG in the world and has also surpassed Qatar with the investment that they have made in several projects of oil and natural gas. The natural gas and oil industry of Australia has given way to several innovations in the technology for industries and initiated projects for the exporting of resources and have also commissioned several other ones as well (Marin, Navas?Alemán and Perez 2015).

Oil and Gas Industry of Australia

The oil and gas industry of Australia is strong and have extended operations for the last several years and has been growing ever since with the establishment of different projects, especially in the areas of the Northern Australia, Western Australia and Victoria. The local companies present in the country have also been a part of the development by their resources that they use and the technologies that they have established to maintain their supply chain. O'Faircheallaigh (2013) states that the local companies of Australia have expertise in the technologies of drilling and exploration, the operations, maintenance, the design and engineering of the projects and the safety of the technologies that are used. This expertise is established with the help of the industries who use the resources of the local companies and in turn help in their development. The local companies also provide their expertise to the oil and gas industries in the global scenario and are well connected to several global players of the same industry. Another aspect of the natural resource industry in Australia is that is famous for being able to overcome any challenges that are faced by them. These challenges can be economic, technological, social or environmental, but it has successfully been able to eradicate any obstacles to their operations and development process. The primary competitive edge of the industry is their inclination towards innovative technologies which is in current times used by several other global oil and natural gas industries for their production (Tonts, Martinus and Plummer 2013). The Australian oil and natural gas industry has a maintained contribution to the research and development of their production and operational capabilities. Along with the development of industries with their innovative technologies, the Australian industry also concentrates on the training and development of the workforce of the sectors so that they may be able to provide proper insights and incur the right skill set to operate in the ever growing and changing industry and to gain a competitive edge over the other global players in the oil and natural gas industry. The institutes of Australia provide the required training which is needed by the people who are employed or wish to be employed in the industry in the future so that they can contribute to the development of the sector.                    

Both of these natural resources are found in abundance in Australia. The production of crude oil in Australia has seen a decrease in the last few years. The production has been at around 600,000 barrels every day in the year 1990 and has reduced to about 500,000 barrels in the year 2009 and after. This shows that the production of crude oil has seen a decline in the years in the Australia industry (Ford, Steen and Verreynne 2014). However, it has also been observed that the consumption level of crude oil has increased among the population if Australia from being 600,000 barrels every day in the year 1990 to about 936,000 barrels every day in the year 2009. The last few years have seen more increase in the consumption and a decrease in the production of crude oil (Sterner and Coria 2013). This scenario has created a significant imbalance in the industries of natural resources and has created a significant impact on the trade conditions of Australia. The major portion of the oil resources present in Australia are available on the Western Australian coast, especially in the Carnarvon Basin. This area consists of approximately 64 per cent of the crude oil resources in Australia, 57 per cent of the liquefied petroleum gas or LPG and about 75 per cent of light oil or condensate resources. A considerable amount of investment is made for the development of natural resource industries in Australia by different facilities of the country (Banks 2017). The North West Shelf Venture (NWSV) which is operated by the Woodside facilities are one of the most significant development facilities for resources like oil and the natural gas contribute to almost 40 per cent of the production of oil and natural gas in Australia. There are six partners for the NWSV which are Woodside who is the operator, Mitsubishi, BP, Chevron, Shell and Billiton Petroleum. The offshore production units of NWSV are Angel Platforms, Goodwyn A and North Rankin A (Crossley 2018). There are also several basins which are producers of natural and condensate gas and oil. They have been the producers since the year 1960. Other producers of these resources are Santos.

Production and Consumption of Oil in Australia

Just like oil, Australia also has a high production of natural gas whose output is much higher than that of oil. These resources are also found in abundance in the northwest of Western Australia and the Timor Sea. The most critical supplies of gas are located in the eastern Australian region such as the basin of Victorian Gippsland and onshore basin of Cooper and Eromanga which is present in the southwest of Queensland and the northeast part of South Australia. The natural gas resources in Australia gives a significant production if domestic gas for the usage of the people of Australia and also contributes majorly in the exportation of Liquefied Natural Gas (LNG) to several other countries all over the world. The export of natural gas was started in the year 1980 with a quantity of 7.5 million tonnes every year, and this quantity has significantly increased to about 16 million tonnes every year (Leather et al. 2013). The exports of Liquefied Natural Gas has been set to grow by the year 2030 to about 50 million tonnes every year if the projects that have been started are operated in the proper way (Werner et al. 2015). With the increase in natural gas exports, the country will be able to take several advantages which will be beneficial for the country and will also lead to their development. Hence, the oil and natural gas industries of Australia aim towards the maximum production and the optimum usage of the resources that are available in Australia and focuses on the growth and the development of the country (Raufflet, Cruz and Bres 2014).                            

The oil and natural gas industries are growing, and there is a continuous demand for both of these resources in the local as well as the global market. The need for natural gas and oil will never subside due to the vast usage of both of these resources. There is a massive opportunity for the oil and natural gas industry due to the ever-growing demand for both of these resources. Oil and natural gas are used both for domestic as well as industrial purposes, and therefore it makes it an important resource for the people and other industries (Nick and Thoenes 2014). Australia has vast reserves of oil and natural gas to meet the demands of the people; however, these resources are slowly depleting with time due to the increase in the consumption and therefore the demand for these resources (Shaffer 2013). Due to the increase in the demand for the oil and natural gas resources, it has been seen that the consumption of these resources have increased drastically so that it might be impossible for the resources to satisfy the demand of every individual in the long run. Due to this scenario, industries have decreased the supply of these resources and have increased the prices so that people might have a steady demand of these resources and they might be able to use it sustainably without exploiting it and make it available for the future generations use these resources (Solarin and Shahbaz 2015). Additionally to match the growing demand of these resources the industries have to produce more amount of oil and natural gas every day so that the production subsequently increases every year and they can supply more to the demanding population.

Production and Export of Natural Gas in Australia

There have been various researches which show that the demand for oil and natural gas is expected to rise in the following years. The daily requirement for these resources is expected to be double of the current demand in the coming years and hence to meet those demand the industries have to develop ways through which they can produce more of these resources and supply them. The demand is not only in Australia but a global scenario which makes it more of a challenge for the industries of Australia as they have to satisfy the demand from a global perspective.   

The industries in Australia which produce oil and natural gas create a great economic impact on the country. The factors that were benefited were the export contributions, the revenue of the government, the development of new projects, employment, gross state product, gross domestic product or GDP and investment in research and development projects and infrastructure for the country. The industries of oil and natural gas contributed to making the everyday life of the people of the country better by providing them with the necessary resources (Bergstrom and Randall 2016). There has been a boost in demand for natural resources in Australia, and this has proved to be a major advantage for the states such as Queensland and Western Australia who have an abundance of resources. This rise in the demand for natural resources has led to the increase in the monetary aspect and the economy if the country. The exports bring in more money and hence the income that is associated with the natural resources such as oil and natural gas occur is increasing day by day. The growth that is happening in the industries of natural resources has been putting pressure in the upward direction for the increase in prices for raw materials (Barnett and Morse 2013). With the changing scenario in the resource industry, the income for natural resources will keep on increasing with time.

The industrialisation of the economies in Australia has led to the increase in the demand for natural resources and also for export purposes. The demand for resources has risen to be high which the country is supplying in calculated amounts, and therefore the amount of such natural resources have become high. The major earner in the country is from the exporting of these natural resources. Various projects are being built by the oil and natural gas industry which contributes to the development of the country and raise the economic level (Hackett and Dissanayake 2014). The industries invest in different projects as mentioned above to establish a fixed growth rate of the country and also in various research and development projects so that innovations emerge from them. These innovations can, in turn, be used by the country to develop and reach a stage of economic stability which will help the population of the county also to develop themselves. Apart from the development that it does for the country with their investment, it also benefits the people by giving them jobs in the various industries. The employment rate in Australia comes at a low rate because of the several employment opportunities in the country due to the numerous industries that are present of the oil and natural gas resources (Rees 2017). The wages of those employed are also more than the national average wage, and hence this proves to be an advantage for the people of Australia. Apart from the people, the businesses also benefit from the industries as both the big firms and the local shops benefit from the oil and gas industry in an economic aspect. The local business also gets an opportunity to grow due to the infrastructure and the several opportunities that are being provided by the industries and also the creation of end number of jobs for the people of the country (Hawken, Lovins and Lovins 2013). The oil and gas industry in Australia has made investments of more than $300 billion for the economy of the country and almost $230 billion in different projects.    

Opportunities and Challenges for the Oil and Gas Industry in Australia

Conclusion

Hence, it can be concluded that the natural resources industry in Australia is at a hype with their ever-changing scenario in demand and supply. The oil and natural gas is a major industry among the other natural resources industries. There is a high demand for both of these resources which pushes the industries of Australia to produce more and supply at a higher price and gain profit from it as these industries now that the high demand will benefit them. However, these resources are found in the limit from the nature, and they have to be used sustainably so that they are existent for the future generations of the world. Whereas, the industries of oil and natural gas in Australia are also changing and growing by adopting different innovative technologies and investing in several projects which ensure the export of these resources especially natural gas. The export facilities help in the development of the country and therefore benefits the economy of the country by providing various opportunities for growth and change. The industries also employ the people of the country by establishing more industries and also provides proper training facilities to them. The demand and supply of natural resources are both aligned to each other however the growing demand may see changes in the supply of these resources in the coming years.

References

Banks, F.E., 2017. The political economy of natural gas. Routledge.

Barnett, H.J. and Morse, C., 2013. Scarcity and growth: The economics of natural resource availability. RFF Press.

Bergstrom, J.C. and Randall, A., 2016. Resource economics: an economic approach to natural resource and environmental policy. Edward Elgar Publishing.

Chegut, A., Eichholtz, P. and Kok, N., 2014. Supply, demand and the value of green buildings. Urban Studies, 51(1), pp.22-43.

Crossley, P., 2018. The Australian LNG Industry: Legal and Commercial Challenges. In The International Political Economy of Oil and Gas (pp. 139-154). Palgrave Macmillan, Cham.

Ford, J.A., Steen, J. and Verreynne, M.L., 2014. How environmental regulations affect innovation in the Australian oil and gas industry: going beyond the Porter Hypothesis. Journal of Cleaner Production, 84, pp.204-213.

Hackett, S. and Dissanayake, S.T., 2014. Environmental and natural resources economics: Theory, policy, and the sustainable society. Routledge.

Hawken, P., Lovins, A.B. and Lovins, L.H., 2013. Natural capitalism: The next industrial revolution. Routledge.

Heakal, R., 2015. Economics basics: Supply and demand. Investopedia. accessed September, 28.

Leather, D.T., Bahadori, A., Nwaoha, C. and Wood, D.A., 2013. A review of Australia's natural gas resources and their exploitation. Journal of Natural Gas Science and Engineering, 10, pp.68-88.

Marin, A., Navas?Alemán, L. and Perez, C., 2015. Natural resource industries as a platform for the development of knowledge intensive industries. Tijdschrift voor economische en sociale geografie, 106(2), pp.154-168.

Nick, S. and Thoenes, S., 2014. What drives natural gas prices?—A structural VAR approach. Energy Economics, 45, pp.517-527.

O'Faircheallaigh, C., 2013. Extractive industries and Indigenous peoples: A changing dynamic?. Journal of Rural Studies, 30, pp.20-30.

Raufflet, E., Cruz, L.B. and Bres, L., 2014. An assessment of corporate social responsibility practices in the mining and oil and gas industries. Journal of Cleaner production, 84, pp.256-270.

Rees, J., 2017. Natural resources: allocation, economics and policy. Routledge.

Shaffer, B., 2013. Natural gas supply stability and foreign policy. Energy Policy, 56, pp.114-125.

Simpson, R.D., 2014. Productivity in natural resource industries: improvement through innovation. Routledge.

Solarin, S.A. and Shahbaz, M., 2015. Natural gas consumption and economic growth: The role of foreign direct investment, capital formation and trade openness in Malaysia. Renewable and Sustainable Energy Reviews, 42, pp.835-845.

Sterner, T. and Coria, J., 2013. Policy instruments for environmental and natural resource management. Routledge.

Tietenberg, T.H. and Lewis, L., 2016. Environmental and natural resource economics. Routledge.

Tonts, M., Martinus, K. and Plummer, P., 2013. Regional development, redistribution and the extraction of mineral resources: the Western Australian Goldfields as a resource bank. Applied Geography, 45, pp.365-374.

Werner, A.K., Vink, S., Watt, K. and Jagals, P., 2015. Environmental health impacts of unconventional natural gas development: a review of the current strength of evidence. Science of the Total Environment, 505, pp.1127-1141.

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