The third part in the firm’s Building the Lucky Country series, Positioning for Prosperity: Catching the next wave has outlined a number of hurdles that stand in the way of the Australian gas industry.

Mining has long been the golden child of the Australian economy, having punched above its weight globally. It was the overachiever of the family.

But now, with weakened commodity prices, the middle child – oil and gas – is starting to regain some lost ground.

The Deloitte report said oil and Australia’s other energy exports, coal and uranium, would not have the same impact as they had in the past but that gas was going to be the saving grace.

Gas heads the list of growth drivers but is joined at the top by tourism, agribusiness, health, international education and wealth management.

Each of these sectors is expected to grow more than 10% faster than global gross domestic product over the next 20 years, which is about 3.4% per year.

“The good news is that we have at least five big-picture advantages running in our favour,” the report said.

These advantages are world-class resources, proximity to Asia, use of English, temperate climate and a well-understood tax and regulation system, as well as a softening Australian dollar.

And while it’s jolly good that Australia gets a bit of sun in the summer and uses the language of the Motherland, the country has a few major things running against it.

Wages in Australia are among the highest in the world and the price of doing business in the country is only getting worse.

Cost blow-outs in the oil and gas industry have become par for the course.

Add that to a fundamentally schizophrenic approvals process and you’ve got yourself into a bit of a pickle.

With each successive government, Australia has done its best to live up to the ideals of the environmentalists but has at the same time stifled industry.

But Deloitte says there is hope.

The sectors of growth could add about $250 billion to the economy between 2013 and 2033 – and apparently that’s not all.

There are other sectors that could be enjoying a renaissance over the coming years.

But gas is the winner of all of these sectors.

The report hails the next 20 years as the gassiest so far, thanks in large part to a technological revolution that has helped companies tap into vast, unlocked reserves.

Because gas is greener than oil and coal, it is also helping the world’s collective conscience.

And Australia is well positioned to tap into this move to gas, which has only grown since the Fukushima disaster in Japan.

A mix of massive demand and growing supply – the perfect storm.

But Deloitte said the gas industry was no sure thing.

“There are big questions over whether Australia can continue to attract the high levels of investment needed to capitalise on our good fortune,” the report said.

“Have we made ourselves so expensive and difficult to deal with that we get passed by?

“Might we see our biggest opportunity become just another good line of business for Australia Limited?”

While we do enjoy large resources, open markets, strong partners and a head start, the report says we are cutting our advantage because of high costs, regulatory burden and sovereign risk.

“The culprits are low productivity, weak innovation and a lack of collaboration within the sector and with government,” Deloitte adds.

It gave the industry and government a number of suggestions for tapping into the country’s natural advantage and they don’t seem too extreme:

• Streamline visa requirements for gas sector workers
• Review regulatory and approval frameworks to reduce duplication and obstacles
• Set firm policies on taxation, climate change and carbon trading
• Support the development of unconventional gas sources and the quelling of community concerns about the industry
• Lower costs through collaboration, better sharing of infrastructure and improved planning.

Got it? Now go back and read that paragraph again.

All of these suggestions have been made at some point or another and have been posed to government, industry and the like.

The question is whether any of these measures are being taken.

Business – check your opportunity radar, Deloitte says.

“Useful steps are to look for discontinuities that may have opened up new opportunities, such as rapid technological, regulatory and demographic shifts,” the firm said.

“There are also new options. Companies can tap social media to better understand consumer sentiment and trends.”

The report said companies needed to increase their exposure to growth or, more eloquently put, “no guts, no glory”

“Looking outside, companies can partner with third parties to expand their areas of competency and create unique capabilities,” it said.

“The more aggressive way for a company to increase its exposure to growth opportunities is to actively change the mix of businesses that it owns.

“At the same time, groups need to make hard decisions and exit areas where growth is limited.”

Government – focus on enabling, Deloitte says.

“To say that safeguarding taxpayers’ money can limit the potential for governments to focus on specific sectors is not to imply that sectoral prospects are irrelevant to governments. Quite the opposite,” it said.

The report said governments needed to be smarter about viewing the context of the global economy and supporting industries that were set to tap into this growth.

Investing in infrastructure, changing policies and building strategic alliances are the big three for government – and Deloitte says “do it now”

“Changes in tax, innovation incentives and carbon pricing policies and regular assessments of the effectiveness of green and red tape can also have a big impact – especially when well-targeted and developed in consultation with the industries they are designed to help,” it said.

Deloitte finished the report with a positive sentiment.

“Let’s start the conversation.”