PESA PRODUCTION AND DEVELOPMENT REVIEW 2006

Abstract

The Australian petroleum industry is having considerable success in offsetting natural field decline through new developments in existing basins and projects in new basins. The industry is also having great success with less conventional coal seam methane production. In energy terms Australian petroleum production peaked in 2000, and then fell until 2003 due to falling oil production. Since then, and despite continuing falls in oil and liquids production, total production has been increasing towards the 2000 peak. In 2006 eight new developments came into production: Darwin LNG, three oil and four gas developments. Seven of these developments were in new basins. Looking to the future there are now more than 20 significant petroleum projects with a combined value of more than A$50 billion either committed or being considered. Between them these could significantly increase Australian production in the next five years, primarily through growing gas production. Replacing falling oil production remains a challenge, as does managing cost increases and skills shortages generally.