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

Australia’s shale industry – how we can become globally competitive

Peter Cox
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Worley, PO Box 15081, City East Brisbane, Qld 4002, Australia. Email: peter.cox@worley.com

The APPEA Journal 59(2) 546-548 https://doi.org/10.1071/AJ18085
Accepted: 15 March 2019   Published: 17 June 2019

Abstract

Project delivery technology is changing and developing at a rapid rate, and Australia’s oil and gas industry could do a better job of embracing change and getting to the forefront of advanced digital technology applied to developing onshore gas resources – particularly to our vast undeveloped shale reserves. Our shale deposits are in remote parts of our country, so present significant challenges, especially in relation to geographical distance away from local and international markets. This paper will focus on the use of automation and standardisation in the engineering design process combined with project execution strategies to significantly reduce both schedule and cost in delivering surface infrastructure required to get our gas shale reserves to both domestic demand centres and export facilities. The traditional project delivery models that have served us well in the past need to be challenged and a new paradigm adopted. Standardisation of the compression and dehydration facilities in the US market has been developed over many years, resulting in efficient project delivery, and enabling reserves to be brought to market on a fast track basis. This paper will work through practices in the US and how they can be applied to Australia. Australian standards and industry practice defines how we design our gathering and pipeline networks. This paper will present a combination of construction strategies and automation of engineering design to optimise life cycle cost in remote regions where construction mobilisation and logistics is a significant factor combined with changing priorities as further reservoir data is obtained from exploration wells.

Keywords: automation, Beetaloo, best practice, construction, cost, design, digital, efficiency, engineering, feasibility, gas, logistics, maintenance, operations, project execution, schedule, standardisation, technologies, viability.

Peter Cox is a Chartered Professional Engineer and a Graduate of the Australian Institute of Company Directors. His current role is Global Vice President – Pipelines Systems for Worley. He is a past President and current Director of the Australian Pipelines and Gas Association. He has been in the industry for over 30 years as project director, project sponsor and senior executive successfully delivering multiple projects in Australia and overseas. The last 27 years has been with Worley. Peter has been involved in the burgeoning coal seam gas industry in Queensland as it has grown from a small marginal business to become a major gas play in Australia. He is chair of the Coal Seam Gas Steering Committee responsible for developing the APGA Code of Practice for Upstream Polyethylene Gathering Networks – CSG Industry. He is also the Worley representative on the APGA Research and Standards Committee and sits on the ME 38 Standards Australia committee responsible for the Australian Petroleum Pipeline Standard.


References

Canavan, M., and Gunner, M. (2018) Memorandum of understanding – harnessing the potential of Northern Territory’s gas industry. Senator the Hon. Matt Canavan and the Chief Minister of the Northern Territory, The Hon. Michael Gunner, 15 November 2018.

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