Great Australian Bight oil industry would need decades of subsidies, report warns

Australia Institute argues that South Australia would receive few benefits and would be exposed to huge risks

The South Australian government needs to prepare itself for decades of subsidies if it wants to develop an offshore oil and gas industry in the Great Australian Bight, according to a new report.

Analysis by the progressive thinktank the Australia Institute draws on industry modelling to argue South Australia is unlikely to receive any noticeable benefit from tax payments as a result of oil and gas production in the Bight, with the benefits mostly flowing to the commonwealth. It says in the exploration phase, production would be minimal, paying no royalties or taxes.