❓ I refer to page 177 of the 2012-13 State Budget papers regarding Petroleum State Royalties. I note that the Government received less than half the anticipated royalties in 2011-12 and is predicting a
AnsweredQoN 5716Legislative Council
QuestionView source ↗
I refer to page 177 of the 2012-13 State Budget papers regarding Petroleum State Royalties. I note that the Government received less than half the anticipated royalties in 2011-12 and is predicting a further steep fall in petroleum royalty income in 2012-13, and I ask —
(1) Why were the actual royalties received from petroleum so much lower than you expected in 2011-12?
(2) Why are the budgeted royalties for 2012-13 so much lower again?
(3) As companies are telling communities that they will drill far fewer wells than originally anticipated for an unconventional gas field, will the Minister return the royalty rate for tight gas to the rate for conventional gas projects?
(1) Why were the actual royalties received from petroleum so much lower than you expected in 2011-12?
(2) Why are the budgeted royalties for 2012-13 so much lower again?
(3) As companies are telling communities that they will drill far fewer wells than originally anticipated for an unconventional gas field, will the Minister return the royalty rate for tight gas to the rate for conventional gas projects?
AnswerView source ↗
Answered
14 August 2012
Responded by
Minister for Mines and Petroleum
Response time
62 days
(1) The decrease reflects the lower than forecast sales volumes and energy prices coupled with the higher than forecast exchange rate.
(2) Page 112 of 2012-13 Budget paper No 3 states "Petroleum royalties are forecast to fall by $7 million (or 36.1%) to $13 million in 2012-13, primarily reflecting declining output from existing on-shore oil and gas fields."
(3) Tight gas exploration wells are generally more expensive and entail greater risk in making a commercial discovery, than for conventional gas. Tight gas production wells are generally more expensive and more wells are usually required, than for conventional gas. The royalty rate set for tight gas recognises the significantly higher exploration, drilling and petroleum recovery costs than for conventional gas.
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(2) Page 112 of 2012-13 Budget paper No 3 states "Petroleum royalties are forecast to fall by $7 million (or 36.1%) to $13 million in 2012-13, primarily reflecting declining output from existing on-shore oil and gas fields."
(3) Tight gas exploration wells are generally more expensive and entail greater risk in making a commercial discovery, than for conventional gas. Tight gas production wells are generally more expensive and more wells are usually required, than for conventional gas. The royalty rate set for tight gas recognises the significantly higher exploration, drilling and petroleum recovery costs than for conventional gas.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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