Gas industry boom brings uneven growth to Western Downs towns

In Chinchilla on Queensland's Western Downs, Lyn McCullough throws open the doors of her bakery at 4am.

It is still dark and, at this time of year, cold. But within minutes, a line of high-vis-clad workers files in, stocking up before heading out to nearby gas fields.

"They'll come in for a coffee, pie or sausage roll — they'll spend $50 or $60 at a time," Ms McCullough said.

She opens early to catch the rush.

"Otherwise, I'd open at 6am," she said with a laugh.

The gas workers have become a key part of her business, helping offset rising operating costs.

"In 2014, our quarterly power bill was about $4,500," she said.

"You know what we're paying now? Nearly $15,000."

The pressure is being felt across the region.

In what is described as Queensland's energy capital, the coal seam gas industry has reshaped the local economy, bringing prosperity and new investment, but there are growing questions about how evenly those benefits are shared across the region.

A changing community

Chinchilla Chamber of Commerce and Industry president Robin Haig said the gas industry had become deeply embedded in her town since the early 2000s.

"Every club and organisation in town would have somebody who works, has worked, or has an immediate family member working in the industry," she said.

The industry's influence is visible in both the workforce and the town's demographics.

"Compare Chinchilla to a similar-sized rural town without gas, you'll see differences in median weekly income, median rents and particularly our average age," Ms Haig said.

According to census data, median personal income in Chinchilla is above both state and national averages, while the town's median age is 33.

"The average age in a rural town can creep up into the 50s and 60s, which is quite concerning," she said.

"It's really important for a town's economy to have young people coming through."

But that growth has not been felt evenly across the region.

A tale of two towns

One doesn't even need to leave the gas fields to find a town that hasn't shared equally in the boom.

Leaving the Warrego Highway and heading along the Tara–Chinchilla Road, signs of the gas industry remain, but the sense of prosperity begins to shift.

Gas wells dot paddocks on both sides of the road but, as Tara approaches, the aesthetic changes.

In the town's main street, about 10 shopfronts sit empty, while several others are up for sale.

Gayle Porter, who runs the Tara Newsagency, said travelling from Chinchilla to Tara was confronting.

"It's a culture shock," she said.

The median age in Tara is 47, and median weekly household income is about $600 lower than in Chinchilla.

"We used to have two pubs, two banks, a golf club, bowls and many other clubs, a thriving business hub and a strong community," Ms Porter said.

She said the town had declined over the past two decades and, despite being surrounded by coal seam gas wells, the industry had delivered limited benefits locally.

"They haven't helped much at all," she said.

Shell QGC and Origin have funded programs and projects in the town, including the Tara Festival of Culture and Camels, a breakfast program at the local school and upgrades to community spaces.

But there is little direct economic flow-on from the industry. There are no large accommodation providers, and gas-related businesses have not developed in the same way as in Chinchilla.

Most residents continue to work in agriculture, local government and education, with the gas industry not among the town's major employers.

In Chinchilla, by contrast, oil and gas extraction is the largest employing industry, accounting for nearly 5 per cent of the workforce.

Uneven gains

Western Downs mayor Andrew Smith said larger centres were more likely to see the most direct benefits of the gas industry, but smaller towns had also seen gains.

"I look back sometimes and think, 'Where are the benefits in our smaller communities?'" Cr Smith said.

"But they are definitely there."

He said the industry had helped reverse long-term regional decline.

"Thirty years ago, the Western Downs, like many parts of rural Australia, was in decline," he said.

"We saw a turnaround kicked off by coal seam gas development."

But as communities like Tara show, that recovery has not been experienced evenly.

Lyn McCullough's bakery is able to keep its ovens on thanks to the steady flow of gas workers in a booming Chinchilla but, just 70 kilometres away, on the other side of the same gas field, it's a very different story.