It is the location and suitability of the gas processing facility itself that is the fundamental factor which drives the overall competitiveness of the development. Economists are strongly in favour of the Gorgon Venture while Economists are strongly against the proposal. .
2. Examine the positive and negative externalities being encountered.
An externality is an economic effect that results from an economic choice but is not reflected in market prices. It occurs when the good is over or underestimated because people don't take into account the additional benefit or costs the good imposes on society. There are many externalities involved in the Barrow Island Gas Project.
Positive- Extensive research has identified that the only feasible site for reinjection of reservoir CO2 for Gorgon Gas is the Dupuy reservoir beneath Barrow Island; this will result in significant public relations windfall by promoting CO2 disposal. The project will foster economic growth, business development and generate government revenue. Communities will benefit from improved quality of life and well being through lower greenhouse emissions, lower particulate emissions, higher efficiency in electricity generation, lower residual waste, lower prices, less nuclear power and less air pollution problems. Australia's proximity to the Asia Pacific Market provides Gorgon with transport cost advantages as well as a secure share of the growing LNG market in Asia and North America. The Gorgon project will meet the need for clean energy in today's market place; it will enhance energy competition and security of supply in Australia. Also a huge workforce would be required resulting in a manifold increase in the level of human industrial activity thus creating employment. The workforce would also create flow-on economic benefits through spending in the region. The proposal would result in likely future discoveries and improvements in technology for extraction.