General financial environment 2014
Max WilliamsonPESA
The APPEA Journal 54(1) 467-472 https://doi.org/10.1071/AJ13045
Published: 2014
Abstract
Research available from oil and gas industry commodity traders and bankers suggests relatively stable pricing of key commodities for the next two to three years. Barring another oil shock, or similar major international event, that will mean a positive atmosphere for longer term decision making by project developers and regulators. With a new, stable Federal Government and similar persuasion State Governments focused on repealing the carbon tax and developing key infrastructure around Australia including ports, it is not unreasonable to expect a period of real growth and project development, including a resurgence of interest in oil and gas exploration. Doubtless continuing pressure from political lobby groups and parties to try and claim some ground in areas like groundwater re-treatment and usage, and the repeal of the Mineral Resource Rent Tax and the carbon tax legislation packages, will be apparent. How the government may achieve these legislation changes will have significant impact on project feasibility and how projects are designed, operated and managed. Some of the fascinating developments in researching aspects of how the Australian industry will achieve its technical objectives and how they are supported by the research and development tax incentives are worth more than a cursory financial review. With a historically cheap cost of capital there will be increased focus on borrowing methodologies and supporting techniques, with equity only being freely available to the majors. The funding of exploration programs and the determination of what is research and development in those programs will be critical for smaller companies.
Max Williamson is the President of the Petroleum Exploration Society of Australia (PESA) Limited, and will remain so until around April 2015. He has been on the NSW Branch executive of PESA for more than 20 years, the President of the NSW Branch, and Federal Treasurer of PESA for two years. Max is a Chartered Accountant with 48 years of experience in the accounting profession, including 32 years of experience dealing with oil and gas matters as a tax consultant and adviser to boards. In prior roles Max has been National Director of Ernst and Young and Grant Thornton’s Extractive Industry practices. These days Max’s activities are dominated by PESA, and consulting to a range of small to medium sized mining and oil and gas exploration and production companies. Max is a Fellow of the Institute of Chartered Accounts, the Governance Institute, the Financial Services Institute of Australasia (FINSIA), and CPA Australia. His non-qualification memberships include being a Chartered Tax Adviser (Taxation Institute) and being a member of the Institute of Directors and the Australian Mining and Petroleum Law Association. Max has been presenting papers at APPEA’s annual conferences regularly in the past 25 years. Max also lectures and presents papers at major oil and gas conferences and workshops, and is considered to be a leading specialist in Australian taxation and accounting standards applicable to the oil and gas industry. wiltaxconsulting@bigpond.com |
