The discovery by the partnership of Esso Exploration and Production Australia Inc. and Hematite Petroleum Pty Ltd during the past eight years of the natural gas and crude oil fields off the east Victorian coast has often been compared to that of gold in the State in the 1850's in its impact .on the economic, industrial and social life of the community.To date the amount spent in the State on the discovery and overall development of these fields is approximately $600 million. The value of oil and gas recovered over the period of nearly four years since production commenced in 1969 and distributed and utilised by various means to 31 December 1972, amounts to about $500 million. In addition the value of refined products from Victoria's three refineries and items produced by industrial processes through the use of natural gas and petroleum products as fuels, amount to many more millions of dollars. The total impact on Victoria in one form or another could, if measured in monetary value, he equivalent to about $1200 million-all in the course of about eight years.Other States have also benefited. The building of tankers, barges, tugs and work boats and the modification of refineries in New South Wales and Queensland, have probably cost in the region of $200 million whilst indirectly the success of the Gippsland oil and gas discoveries has spurred other explorers to step up the search in many areas and, as far as natural gas is concerned, with considerable success.The speed and efficiency with which the four gas and oil fields developed to date were brought into production, the necessary treatment plants erected, the pipelines laid and distribution facilities organised; and with which the gas industry changed over to the new fuel and refineries modified their processes to use indigenous crudes have, by world standards, been exceptional. From the time the first gas field-Barracouta, was found in February 1965 until the last oil field in the program -Kingfish came fully on stream late in 1971, less than seven years elapsed.During that time Victorian fuel patterns underwent vast changes. Today over 95% of all gas consumers are using natural gas and about 70% of crude processed by local refineries comes from the Gippsland Basin. The significance of natural gas in particular is demonstrated by a 41% increase in gas sales in Victoria in 1971/72 over the previous twelve months and this trend is expected to accelerate as a result of recent arrangements for the supply of large volumes of this fuel to industrial plants including paper mills, cement works and an alumina smelter.Also of major significance to the State has been the development of the port of Western Port where the loading of tankers and LPG carriers has resulted in it becoming the State's second busiest port. Of less immediate impact but still of great value in the long term, has been the building of better roads and facilities needed to service the installations and the emergence of many valuable skills in the petroleum industry which will make easier the task of future development of new fields and facilities in Victoria and other parts of Australia.
Revisiting Egypt's Energy Policy
