Development and production review 2022

Abstract

The Petroleum Exploration Society of Australia (PESA) Year in Review Development and Production review looks back at the oil and gas production and development activities in Australia in 2022, with a look at both the historical context of these activities, and the future implications. With the invasion of Ukraine, increasing inflationary pressures, supply chain problems, the prospect of a global recession looming, the impact of COVID-19 still lingering, and increased activism around climate change issues, sentiment was subdued for most of the year, yet there were still several highlights and events. Liquefied natural gas (LNG) production again hit record high levels although, as expected, Australia lost its position as the top LNG exporting country in the world to the USA. The development of the Scarborough/Pluto 2 LNG project continued, as did the Barossa project, although the latter hit legal and approval hurdles resulting in suspension of drilling activities (which are not expected to impact the overall schedule). Final investment decisions were taken on the further development of the Kipper field in the Gippsland Basin, the Crux project in the Browse Basin and the Walyering project in the Perth Basin. The domestic markets continue to have unique issues with major concerns about gas supply in the East co-existing with stalled developments and falling supply in the Northern Territory in stark contrast to the West, where there is significant development and take-over activity.