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Australian Energy Producers Journal Australian Energy Producers Journal Society
Journal of Australian Energy Producers
RESEARCH ARTICLE (Non peer reviewed)

Australian petroleum production and development 2018

Graeme Bethune
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EnergyQuest, Level 30, 91 King William Street, Adelaide, SA 5000, Australia. Email: gbethune@energyquest.com.au

The APPEA Journal 59(2) 482-492 https://doi.org/10.1071/AJ18285
Accepted: 4 April 2019   Published: 17 June 2019

Abstract

This Petroleum Exploration Society of Australia review looks in detail at the trends and highlights for oil and gas production and development both onshore and offshore Australia during 2018. Total petroleum production climbed strongly for the third consecutive year, driven by LNG. A highlight is the start-up of the INPEX Ichthys project. Production is set for further growth in 2019 with the ramp-up of this project and the start-up of Shell’s Prelude floating LNG project. Prelude and Ichthys are the last projects to be commissioned in a wave of seven new LNG projects that are making Australia the world’s largest LNG exporter and a crucial supplier of gas to Asia, including the largest source of LNG for Japan and China and the second-largest source for South Korea. By contrast, Australian oil production continued to fall rapidly and is now easily surpassed by rising condensate production from new LNG projects. There were stark contrasts between domestic gas on the west and east coasts. On the west coast, prices remain low and supply relatively plentiful. The east coast domestic market was tighter and LNG producers responded by diverting gas supplies to the domestic market. This paper canvasses these trends and makes conclusions about the condition of the oil and gas industry in Australia. This paper relies primarily on production and reserves data compiled by EnergyQuest and published in its EnergyQuarterly reports.

Keywords: Australia, coal seam gas, condensate, CSG, domestic gas, gas, LNG, LPG, natural gas liquids, oil, reserves.

Graeme Bethune is CEO of EnergyQuest, a company he established in 2005 to provide energy analysis and strategic advice on Australian oil and gas to companies and governments. Between 1995 and 2005 Graeme held senior executive positions with Santos, one of Australia’s leading energy companies, with responsibilities for finance, business development and investor relations. Graeme is the lead author of EnergyQuest EnergyQuarterly report and also its Monthly LNG Report. Graeme also undertakes regular consulting assignments on Australian and international oil and gas. He is regularly asked to speak at energy conferences in Australia and Asia, and his comments are sought by the domestic and international media. Graeme is Chairman of the Australian Gas Industry Trust, represents Australia on the Executive Committee of the International Gas Union (IGU) and is the IGU Regional Coordinator for North Asia and Australasia. Graeme has a First-Class Honours Degree in Economics from Monash University and a PhD from the Australian National University. He has undertaken the executive program at the Graduate School of Business at Stanford University, is a Fellow of the Australian Institute of Energy and is a member of the US Society of Petroleum Engineers and the Petroleum Exploration Society of Australia.