In view of the major LNG capital projects planned by oil and gas projects in Queensland and Western Australia, the most prominent risks in the oil and gas industry are around safety, according to Deloitte.
Safety is always a challenging issue, and will continue to be so particularly while thousands of new employees join the industry in the rush to resource major new projects, said Stephen Reid, the national leader of Deloitte's oil and gas industry sector.
"Project proponents can't afford to outsource their safety obligations along with parts of the project. High safety standards will need to be maintained throughout the supply chain," he said.
The major LNG capital projects are $15 billion plus complex developments with multiple stakeholders, many of which are proposed to be developed simultaneously, said Reid.
"Australian industry will be challenged to deliver into these projects as they battle, commodity and wage inflation and talent shortages of their own," he said.
"Risks that are not sufficiently well managed could translate into costly delays to project timelines and reductions in project returns."
Reid's comments came following the release of a Deloitte report which said the oil spill in the Gulf of Mexico had oil and gas producers around the globe now reexamining their safety policies in an effort to ensure sustainable operations.
"This often involves identifying and quantifying environmental, health and safety (EH&S) risks according to the new cost paradigm as well as implementing effective methods for managing and controlling these risks," said the report, Oil and Gas reality check 2011.
"Also, it frequently entails establishing ultimate accountability and clear roles and responsibilities for implementing EH&S policies and procedures."