State of the nation: Australia’s upstream industry in 2014

Abstract

Australia has emerged as a major international upstream player during the past few years. Record investment recently is set to transform Australia into one of the world’s leading gas exporters by the end of this decade. The significant unconventional oil and gas potential continues to attract major international energy companies to these shores, while exploration activity remains buoyant despite a reserves to production ratio (R/P) of more than 65 years. Australia has the resources and the skill set to remain at the forefront of the industry for years to come. Growing international competition, cost, regulatory and productivity challenges, however, are beginning to blot the landscape for future investment of a similar scale. Drawing on the commercial challenges of operating in Australia, the author explores whether the returns of offer in Australia stack up against some of the opportunities elsewhere in the world, and what can be done to keep Australia’s resources industries competitive.