Land Down Under

Despite persistent weakness in most OECD economies, continued demand for Australia’s commodities, particularly from its rapidly developing Asian neighbors, has helped the country’s economy to rebound from the Great Recession much faster than its European and North American peers. Energy exports make up a significant portion of Australia’s GDP, and the country has continued to invest in developing these outbound resources. In the face of declining crude oil volumes, Australia has shifted attention to its more abundant hydrocarbons, namely, natural gas. Projects such as the $40 billion Gorgon LNG project are aimed at very literally fueling Australia’s GDP growth. But even as Australia’s focus shifts away from conventional crude oil production, there may be still be chances for tanker owners trading in Pacific markets to benefit from the country’s investments. Download here