Australia Oil and Gas Market Report - Market Analysis, Size, Share, Growth, Outlook - Industry Trends and Forecast to 2028

Anticipated to exhibit robustness from 2023 to 2028, the Australian oil and gas market is poised for steady growth. Among the pivotal catalysts igniting this trajectory is the worldwide increasing demand for natural gas, coupled with steadfast governmental backing encompassing incentives, as well as propitious policies and regulations.

Nevertheless, amidst these promising prospects, the industry encounters certain impediments that warrant consideration. Geopolitical uncertainties loom as a persistent risk, potentially affecting market dynamics. Concurrently, the ascent of stringent environmental regulations casts a shadow over growth, constituting an additional hurdle for the Australian oil and gas market's expansion.

Australia Oil and Gas Industry

The Australian oil and gas industry plays a crucial role in strengthening the country's economy, serving as a key driver of economic growth. Notably focusing on the production of liquefied natural gas (LNG), Australia has established itself as a prominent global player in this sector. The nation's substantial contribution to LNG production not only caters to its domestic energy needs but also fuels international trade in this valuable resource. 

The focal point of the oil and gas industry lies within Western Australia, home to the bulk of the nation's reserves. Nonetheless, substantial reservoirs are also present in alternate states, including Queensland, South Australia, and the Northern Territory.

Current Scenario

In 2022, the Australian production of crude oil and condensate saw a reduction, amounting to approximately 103.9 million barrels, contrasting with the 2021 figure of around 122.2 million barrels. Correspondingly, the year-on-year natural gas production experienced a decline of 4.4%, decreasing from 156.7 billion cubic metres (Bcm) in 2021 to 149.8 Bcm in 2022.

This ongoing descent in Australian petroleum production coincides with a period of limited offshore exploration and development within the country in recent years.

Conversely, the export of liquefied natural gas (LNG) showcased resilience in 2022. Notably, Australia achieved a new record by exporting 81.4 million metric tons of LNG during the year, marking a 0.5% increase compared to the previous year. The export earnings received a favorable boost due to the exceptionally high international prices prevalent throughout 2022. This substantial upswing in export revenue surpasses the record set in 2019 before the onset of the pandemic.

Drivers

The global appetite for natural gas is on a steady rise, driven by its expanding role in both electricity generation and various industries. This surge in demand finds its roots in the recognition of natural gas as a cleaner and more environmentally friendly substitute for coal in power generation and also as bridge fuel for energy transition. 

Notably, the attributes of being a fossil fuel with relatively low greenhouse gas emissions and possessing greater efficiency contribute to its preference. Simultaneously, the industrial sector's increasing reliance on natural gas further drives this demand surge, due to its versatile nature capable of fueling a wide spectrum of industrial processes.

Australia stands out as a significant player in the realm of natural gas production. The country's production profile is heavily oriented towards exportation. As global demand for natural gas witnesses a steady ascent, the effects reverberate within Australia's production landscape, proportionally influencing its output.

The aftermath of the COVID-19 pandemic has introduced a series of transformative shifts in the global natural gas market, amplifying the worldwide thirst for this energy resource. One notable facet is the heightened demand stemming from the post-pandemic economic recovery across nations. This recovery has sparked increased energy consumption and industrial activity, consequently intensifying the need for natural gas.

Moreover, the Russia-Ukraine conflict has significantly impacted the dynamics of natural gas supply and demand. The geopolitical tensions have impelled European nations to seek alternative sources of natural gas to mitigate potential supply disruptions. This search for diversification has presented an opportunity for natural gas producers, including Australia, to play an even more pivotal role in global energy supply.

Recent Developments

• In August 2023, Chevron Corporation made a significant stride towards environmental sustainability by unveiling investments in two innovative lower-carbon projects located in Western Australia (WA) through its subsidiaries, namely Chevron Australia New Energies Pty Ltd and Chevron Australia Pty Ltd.
• In August 2023, the APA Group unveiled the Northern Goldfields Interconnect (NGI) pipeline in Western Australia. This 360.4-mile buried conduit establishes a vital link, connecting Dampier City, the Bunbury Natural Gas Pipeline, and the Goldfields Gas Pipeline. The NGI pipeline significantly improves access to existing and emerging natural gas production areas and storage facilities, especially in the emerging Perth Basin.
• A consortium comprised of Brookfield Renewable Partners, together with its institutional partners and global institutional investors GIC and Temasek (“Brookfield”), and MidOcean Energy, an LNG company formed and managed by EIG, a leading institutional investor in the global energy and infrastructure sectors, has entered into a Scheme Implementation Deed with Origin Energy Limited to acquire 100% of the company’s shares.
• In February 2023, Australia's Federal Court overturned a previous decision by former Prime Minister Scott Morrison, which had denied a natural gas exploration license off the country's east coast. The court ruled that the refusal to grant the exploration license was biased.
• The Australian industry has unveiled a carbon roadmap for achieving a net-zero future. The roadmap outlines the creation of designated zones equipped with shared infrastructure for gas, renewables, carbon capture utilization and storage (CCUS), and hydrogen production. This initiative aims to accelerate the transformation toward a net-zero economy.
• Amidst environmentalist criticism, the Australian Government has affirmed its commitment to backing natural gas production, as declared during the Australian Petroleum Production and Exploration Association (APPEA) conference in May 2023.

The new report from Blackridge Research on the Australia Oil and Gas Market comprehensively analyses the fossil fuels Market and provides deep insight into the current and future state of the industry. 

The study examines the drivers, restraints, and regional trends influencing Australia Oil and Gas Market demand and growth. The report also addresses present and future market opportunities, market trends, developments, and the impact of Covid-19 on the Oil and Gas Market, important commercial developments, trends, regions, and segments poised for the fastest growth, competitive landscape, and market share of key players. Further, the report will also provide Australia oil and gas Market size, demand forecast, and growth rates.

What we cover in the report?

Australia Oil and Gas Market Drivers & Restraints

The study covers all the major underlying forces that help the market develop and grow and the factors that constrain the growth.

The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.

Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and functions as a guide for you to analyze the degree of impact.

Australia Oil and Gas Market Analysis

This report discusses the overview of the market, the latest updates, important commercial developments and structural trends, and government policies and regulations.

This section provides an assessment of COVID-19 impact on Australia oil and gas demand.

Australia Oil and Gas Market Size and Demand Forecast

The report provides the Australia oil and gas market size and demand forecast until 2028, including year-on-year (YoY) growth rates and CAGR.

Australia Oil and Gas Industry Analysis

The report examines the critical elements of the Australian oil and gas industry supply chain, its structure, and the participants

Using Porter's five forces framework, the report covers the assessment of the oil and gas industry's state of competition and profitability.

Australia Oil and Gas Market Segmentation & Forecast

The report dissects the Australia Oil and Gas Market into various segments. A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.

Further, market size and demand forecasts will be presented along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth.

For a "bespoke" market segmentation to better align the research report with your requirements.

Key Company Profiles

This report presents detailed profiles of Key companies in the Australia oil and gas industry such as Woodside Energy Ltd., . In general, each company profile includes - an overview of the company, relevant products and services, a financial overview, and recent developments.

Competitive Landscape

The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.

The study also discusses the strategies adopted by leading players in the industry.

Executive Summary

The Executive Summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.

The report begins with an Executive Summary chapter and ends with Conclusions and Recommendations.

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