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

The case for shared infrastructure to unlock onshore resources

Kai C. Eberspaecher
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Bengal Energy, 8/46 Edward Street, Brisbane, Qld 4000, Australia. Email: keberspaecher@bengalenergy.ca

The APPEA Journal 60(2) 431-434 https://doi.org/10.1071/AJ19020
Accepted: 28 February 2020   Published: 15 May 2020

Abstract

This paper outlines the current state of the upstream industry for smaller oil and gas developers in Australia’s mature onshore basins. In particular, a strategic review of the market landscape based on Porter’s Five Forces model is undertaken from a junior exploration company’s perspective with a focus on barriers to market entry, such as access to infrastructure, capital, assets and expertise. In the strategic framework context, the paper examines the opportunities to break down natural monopolistic structures and barriers to entry across incumbent producers, pipeline transportation companies and contractors. It also investigates potential changes in resource policy dealing with access to infrastructure and general development requirements. In its analysis, the importance of junior explorers to extend the longevity of mature basins by looking at other petroleum provinces around the globe is highlighted. Examples in North America (onshore) and the UK (offshore) are used to showcase approaches in assisting smaller companies converting resources into reserves. In its conclusion, the paper demonstrates qualitatively how shared infrastructure, coopetition and incorporating renewables can be game changers for junior explorers in unlocking further resources and new prospects in the Australian onshore hydrocarbon provinces. The paper also calls for further coordination between companies, industry bodies and government under an improvement framework to ensure continued success.

Keywords: energy mix, infrastructure, junior exploration company, onshore, strategy.

Kai C. Eberspaecher is Bengal Energy’s Country Manager for Australia. Kai started his career as a production engineer with Shell International working in the North Sea. He then joined BG Group, where he held several corporate, operational and project roles in the UK, Kazakhstan and Australia. In 2015, Kai became Advisian’s Practice Lead in Operational Excellence for Asia-Pacific working with clients on organisational change, business improvement and corporate due diligence focused on the oil and gas sector. Last year, Kai joined Bengal Energy as Country Manager to support the commercialisation of Bengal Energy’s resources in the Cooper Basin. In the same year, Kai became a Non-Executive Director with Elite Energy Consulting, a specialist advisory in hydrocarbon accounting and production management. Kai is a Fellow of the Institute of Chemical Engineers, a Chartered Engineer, a Fellow of the Association for Project Management and a Registered Professional Engineer in Queensland. Kai holds an MEng in Chemical Engineering from Imperial College London and an MBA from the Tepper School of Business at Carnegie Mellon University in Pittsburgh.


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