Over the past few years, growth in Australia’s petroleum sector, which includes crude oil, condensate, LPG, natural gas and LNG, has been largely attributed to LNG.

In fact, as several major gas projects step up to completion, the contribution of liquid natural gas (LNG) to the Australian economy is anticipated to increase from AU$12 billion to AU$60 billion by 2018.

As growth in the gas market continues, how is the rest of the petroleum sector fairing? In our series on The Future of Australian Mining Minerals, this latest article explores the petroleum sector and how global trends are expected to influence exploration, production and exports.

PETROLEUM IN AUSTRALIA

In Australia, the production of oil, condensate and LPG has been trending down since it peaked in 2000, according to the Australian Petroleum & Exploration Association. A greater than 50% slide in oil prices, caused by a global oversupply, has made exploration and development of new projects far less attractive to Australian producers.

Conversely, Australia’s production of natural gas (LNG, domestic gas and natural gas from coal seams) has more than doubled since 1998. This year alone will see several new LNG processing plants come online, and the start of production for one of the Curtis Island LNG plants.

FUTURE GROWTH IN PETROLEUM PRODUCTS

The outlook for the petroleum industry is mixed. Australia’s oil production has been declining and there is approximately only one decade of known oil resources remaining (taken at today’s production rates). That said, there has been little exploration of onshore oil reserves.

On the other hand, Australia has the largest natural gas reserves in the Asia-Pacific region with production continuing to increase. Western Australia has the largest producing basin in the country, new discoveries are being made and more exploration yet to be done.

Liquid natural gas is the fastest growing energy sector and the outlook looks good for continued growth. We are currently the world’s fifth largest LNG exporter and a global leader in LNG innovation.

ARE YOU IN THE PETROLEUM SECTOR?

If you’re in the mining and minerals sector such as LNG, National Plant and Equipment provides flexible earthmoving equipment solutions to meet your needs. We supply only reputable brands of mining equipment for sale or for hire.