Can Australia create ‘super’ basins?

Abstract

The world’s need for sustainable energy requires the upstream industry to utilise and deliver renewables and carbon capture and storage (CCS) at scale. To do that we must focus on where the synergies with low-carbon technologies are greatest. We define these as the energy ‘super basins’ of the future – where large hydrocarbon resources are co-located with plentiful clean electricity and CCS potential. These basins provide a viable pathway for industry to become sustainable. Basins without these attributes are disadvantaged, and face being left behind. This paper will focus on where Australian basins sit on this scale – which are the most advantaged through to disadvantaged? Which have the most viable renewables and CCS/CCUS (carbon capture, utilisation and storage) potential? Advantage also depends on cost – renewable energy must be abundant and affordable. In Australia today, upstream resources are plentiful but advantaged resources are not. But that perspective is not fixed, and there is much industry can do to strengthen its outlook. The average upstream emissions intensity of Australian projects is significantly above the global average – due to remote locations, high energy intensity and contaminants. Using renewables and CCUS to cut emissions is a logical step. Government policy, new technologies and exploration can also make a difference. But what of smaller basins without scale? Can Australian operators create ‘boutique’ basins with niche advantages – such as copious wind or solar power – that enable them to extend their longevity? Making Australia’s upstream sector resilient and sustainable is a huge challenge and will require ambitious, innovative basin-level thinking.