AUSTRALIA'S PETROLEUM RESOURCES, PRODUCTION AND DEMAND IN THE 1970'S

Abstract

At the end of the third quarter of 1971, Australia's estimated remaining proven reserves of crude oil were 1,685 × 106 barrels, and of natural gas were 13.97 × 1012 cu. ft., with 273 × 106 barrels of condensate recoverable from natural gas.

Additional quantities have been discovered, but not proved as yet. Australia's found petroleum resources at the beginning of the last quarter of 1971 would have approximated 3.000 × 106 barrels of hydrocarbon liquids, and 45 × 1012 cu.tf of natural gas, together representing a thermal value of 64 × 1015 BTU, or about 20% of the thermal value of Australia's recoverable black coal resources.

Depletion of petroleum resources by production amounted to 10.14% of the initial proven reserves of crude oil, and 1.21% of natural gas proven reserves.

About 73% of our found petroleum resources are in the Mesozoic and Tertiary sediments beneath the Gippsland and the Northwest continental shelves. Factors quoted by Weeks in favour of the offshore vis-a-vis the onshore seem to have been confirmed by Australian experience to date The production of crude oil from proven deposits in the period 1.10.71 to 31.12.79, estimated as 1,070 × 106, will fall short of the estimated demand of 2.170 × 106 barrels. Possible additional production from deposits discovered but not yet proven is not likely to make up this shortfall. No estimate of the likely cost, or time required, to discover additional crude oil deposits can be given.

An additional problem concerns the supply of the products at the heavy end of the barrel, unless heavier type crudes are discovered.

The greater portion of our found petroleum resources consists of natural gas and its liquids. Unlike crude oil, the potential production from these deposits could exceed local demands, which for the period 1971 to 1979 are estimated as 1.8 × 1012 cu. ft.