Executive Summary The energy industry is a major contributor to the Australian economy. In 2014–15 it contributed around $96.6 billion to industry gross value added, around 6 per cent of the Australian economy in total. AGL Energy Limited, a publicly listed Australian company provides energy products and services to the Australian economy. The company is involved in both the generation and retailing of electricity for residential and commercial use. Company began operating in Australia in 1837 as The Australian Gas Light Company. AGL is Australia's largest private owner, operator and developer of renewable energy assets among other energy providers such as Origin, Momentum energy and Energy Australia. A. Corporate Governance of AGL Energy …show more content…
Oil was the largest source of energy in Australia, accounting for 38 per cent of consumption in 2013–14. Coal was the second largest energy source (Australian Energy update 2016). Energy exports & Energy imports Australia’s net energy exports 72% and imports were valued at $34.2 billion in 2014–15 (Australian Energy update 2016). Risk factors associated with energy industry Geological Risk Geological risk refers to both the difficulty of extraction and the possibility that the accessible reserves in any deposit will be smaller than estimated (Australian Energy update 2016). Political Risk The primary way that politics can affect oil is in the regulatory sense having a range of regulations that limit where, when and how extraction is done (Australian Energy update 2016). Technology Risk Australia’s energy markets are currently in a state of transition, as a result of new technologies, evolving customer expectations and a global commitment to reduce greenhouse gas emissions (Australian Energy update 2016). Price Risk Beyond the geological risk, the price of oil and gas is the primary factor in deciding whether a reserve is economically feasible (Australian Energy update