Production and development review 2007

Abstract

Australian petroleum production was close to record levels in 2007 with higher oil production and expansion of domestic gas, LNG and coal seam gas production. Growth in coal seam gas production has reached the point where it is not only providing a significant supply source for domestic gas and power station projects, but is proposed as the source of supply to no less than four potential LNG export plants in Queensland. Five new oil and gas developments came on stream during the year. Four final investment decisions were taken on major projects, the largest being the Pluto project in the Carnarvon Basin. The pipeline of committed and potential projects now includes about 25 significant petroleum projects with a combined value of over $100 billion. Together these have the potential to significantly increase Australian production in the next five to ten years, primarily through growing gas production. In the near term significant new oil projects carry the prospect of higher oil production in 2008. Cost estimates for new projects continued to escalate sharply and skills shortages in all parts of the project delivery chain threaten the ability to deliver all of the projects as contemplated.