Energy is a basic input into virtually every aspect of personal and business activity.
Energy, in some form, is involved in most household activities, such as heating,
cooling, cooking, lighting, transport or enjoying services or products that require
energy in their supply. Firms also use energy in virtually all of their activities,
whether it is processing and manufacturing materials, transporting goods, heating
and cooling premises, providing telecommunication services or powering
computers.
As a result, energy is a fundamental part of life in Australia and the
energy sector is an essential component of the Australian economy.
Expenditure on energy in Australia in 2002–03 was about $50 billion. Energy exports
of coal, natural gas, oil, petroleum products and uranium amounted to $24.2 billion
(ABARE 2004). Energy is a significant input for major industries such as aluminium,
steel, cement, and pulp and paper; their international competitiveness relies on
access to competitively priced, reliable energy. The energy sector directly employs
about 120 000 Australians while energy-intensive industries employ hundreds
of thousands more. The aluminium, cement and paper industries alone employ
35 000 Australians.
Energy production and use also has environmental impacts. Transport emissions
are a source of urban air pollution. Energy development projects can lead to a range
of impacts on air and water quality, biodiversity, noise levels and heritage. Energy
use is also the major contributor to greenhouse gas emissions.
