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Queensland Resources Council
Economic Contribution

Since opening this page, the Queensland resources sector has generated the following contribution to the state's economy

$150,549,540

Queensland Resources Council
HomeQueensland resources sectorEconomic contributionWhat drives resource development? - Queensland Resources Council

What drives resource development?

Global demand fundamentals

The World Energy Outlook 2014released by the International Energy Agency (IEA) underlines the scale of the economic opportunity that lies ahead for Queensland. According to the report global energy demand is set to grow by 37 percent by 2040.

A key driver in this growth of global demand for power generation is energy poverty, with 1.3 billion people having no access to electricity and 2.7 billion people without clean cooking facilities.

The International Energy Agency (IEA) suggests that by 2040 world energy supply will be divided in four almost equal parts: (i) low carbon technologies (renewable energy and nuclear), (ii) oil, (iii) natural gas and (iii) coal. Queensland has a big contribution to make across all four components of world energy supply.

The IEA projects that the global coal trade will grow by 40 per cent by 2040. Our high quality thermal coal will see Queensland competing for our share of that growing demand.

For metallurgical coal, steel consumption is forecast to increase in economies undergoing industrial development, particularly China, India and South East Asia.

Queensland will contribute significantly to the forecast rise in the share of LNG in global gas trade. As early as 2020, Australia is on track to become the world's largest source of LNG supply.

Risks to growth

Queensland’s resources sector is a 'price taker' in highly competitive global markets. Investments span decades, while people, capital and technology are all globally mobile.

Queensland’s competitiveness has slipped. Queensland’s reputation as a low-risk investment destination has been tested in recent years by a number of policy and legislative changes (at the state and federal level) and high structural costs.

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