ABC

A senior commodity economist says it is too soon to tell whether the Timor Sea oil spill will dampen investor confidence in the oil and gas industry.

The West Atlas oil rig spewed oil and gas into the sea for 10 weeks and last week caught fire.

It has since been plugged with mud.

Alan Copeland, a commodity analyst with the Australian Bureau of Agricultural and Resource Economics, says it could take months before the full effects are revealed.

"This spill is something that has obviously occurred very recently. It is within 10 weeks," he said.

"From an investment horizon point of view, a lot of these fields have been under development for many years and there is no way that you can tell what sort of impact it will have.

"But the companies in this country operate under very strict guidelines. They would be confident in their ability to operate fields to their potential."