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In energy terms, Australian petroleum production peaked in 2000 and then fell until 2003 due to falling oil production, Bethune said.
Since then total production has been increasing towards the 2000 peak and should pass it in the next few years, but this was due to rising liquefied natural gas and coal seam methane production – oil and liquids production would continue to fall.
In 2006, eight new developments came into production in Australia: Darwin LNG, three oil projects (Cliff Head, Enfield and Basker Manta), two conventional gas schemes (Casino and BassGas), and two CSM projects (Kogan North and Berwyndale South).
Seven of these developments were in new basins. Production was continuing to fall in the mature regions – the Cooper, Gippsland and Carnarvon basins – even as the Otway and Bonaparte basins delivered more conventional gas and gas-associated liquids.
In addition, the Sydney and Surat-Bowen basins were producing ever-increasing amounts of CSM and Australia’s proven and probable (2P) CSM reserves increased from about 3500 petajoules in 2005 to 4500PJ in 2006, according to Bethune.
“Looking to the future there are currently over 20 significant petroleum projects with a combined value of over $50 billion either committed or being considered in Australia,” he said.
“This is up from around $40 billion 12 months ago.
“But most of this money is being allocated for LNG projects. Less than $3 billion of this total is being budgeted for oil projects and little work is being done on enhanced oil recovery with the notable exceptions being the [Santos-operated] Cooper Oil Project, Basker Manta [Anzon Australia and Beach Petroleum] and Puffin [AED].”
Between them these new projects could more than double Australia’s gas production, Bethune said.
Unfortunately, oil is still worth significantly more than gas and as a result Australia is running an increasing petroleum trade deficit, Bethune said.
“In 2006, the petroleum trade deficit was $8 billion, up from $4 billion the previous year. So it doubled in 12 months.”
