| Petroleum production and trade |
 |
| Australia’s crude oil production is equivalent to around 70 per cent of refinery feedstock, meaning Australia is a net importer of crude oil. Around 78 per cent of Australia’s refined product consumption is sourced from domestic refineries. However, more than 60 per cent of Australia’s crude oil production is exported, resulting in 70 per cent of refinery feedstock being sourced from imports. In contrast, Australia is a net exporter of LPG, exporting around 60 per cent of its annual LPG production. |
| |
 |
| Production |
Australia’s production of crude oil, condensate and LPG all decreased in 2007-08. Crude oil and condensate production combined decreased by 7 per cent in 2007-08, while LPG production decreased by 13 per cent. Crude oil and condensate production has experienced similar decreases over the past five years, excluding an increase of 17 per cent in crude oil and condensate production in 2006-07. In contrast, LPG production has remained relatively constant over the five years prior to 2007-08.
Australia’s largest petroleum producing basins are the Carnarvon Basin in the north-west of Australia and the Gippsland Basin in the Bass Strait. While production from the Carnarvon Basin is mostly exported, production from the Gippsland Basin in south-eastern Australia is predominantly used in domestic refining. The Carnarvon Basin currently accounts for 62 per cent of Australia’s production of crude oil, condensate and LPG. Production from the Gippsland Basin peaked in the mid-1980s and has declined steadily since. The Gippsland Basin now constitutes 18 per cent of Australia’s total production of crude oil, condensate and LPG. |
| |
| 25 |
Australian production of primary petroleum, by basin |
|
| |
|
|
ML |
ML |
ML |
ML |
ML |
ML |
| |
| Crude oil |
|
|
|
|
|
|
| Adavale |
2 |
0 |
0 |
0 |
0 |
0 |
| Amadeus |
59 |
136 |
132 |
53 |
55 |
50 |
| Bonaparte |
4 806 |
3 037 |
1 868 |
1 403 |
1 470 |
826 |
| Bowen–Surat |
27 |
28 |
24 |
23 |
21 |
16 |
| Canning |
4 |
3 |
2 |
2 |
2 |
4 |
|
| Carnarvon |
|
|
|
|
|
|
| Barrow Island |
547 |
502 |
448 |
390 |
390 |
2 849 |
| North West Shelf |
8 842 |
8 564 |
7 859 |
4 524 |
5 850 |
4 063 |
| Other |
4 284 |
3 688 |
3 831 |
5 854 |
7 044 |
4 710 |
|
| Cooper–Eromanga |
|
|
|
|
|
| Queensland |
450 |
387 |
529 |
432 |
791 |
901 |
| South Australia |
413 |
445 |
401 |
489 |
1 116 |
1 354 |
| Gippsland |
6 937 |
6 019 |
4 647 |
3 681 |
3 850 |
3 392 |
| Otway |
0 |
0 |
0 |
0 |
0 |
0 |
| Perth |
119 |
387 |
517 |
395 |
816 |
668 |
| Total |
26 492 |
23 198 |
20 259 |
17 247 |
21 405 |
18 832 |
|
| Condensate |
|
|
|
|
|
|
| Adavale |
1 |
0 |
0 |
0 |
0 |
0 |
| Amadeus |
0 |
0 |
0 |
0 |
0 |
0 |
| Bonaparte |
0 |
46 |
307 |
394 |
394 |
33 |
| Bowen–Surat |
12 |
15 |
23 |
20 |
21 |
19 |
| Canning |
0 |
0 |
0 |
0 |
0 |
0 |
|
| Carnarvon |
|
|
|
|
|
|
| Barrow Island |
349 |
203 |
120 |
0 |
8 |
0 |
| North West Shelf |
6 686 |
5 840 |
5 041 |
5 265 |
5 692 |
5 572 |
| Other |
101 |
142 |
250 |
202 |
134 |
143 |
|
| Cooper–Eromanga |
|
|
|
|
|
| Queensland |
239 |
242 |
270 |
205 |
167 |
163 |
| South Australia |
349 |
176 |
221 |
208 |
239 |
193 |
| Gippsland |
769 |
836 |
813 |
770 |
744 |
804 |
| Otway |
23 |
13 |
7 |
3 |
2 |
28 |
| Perth |
2 |
1 |
1 |
2 |
3 |
2 |
| Total |
8 532 |
7 515 |
7 052 |
7 069 |
7 404 |
6 957 |
|
| Liquefied petroleum gas |
|
|
|
|
|
| Adavale |
0 |
0 |
0 |
0 |
0 |
0 |
| Amadeus |
0 |
0 |
0 |
0 |
0 |
0 |
| Bonaparte |
0 |
0 |
0 |
0 |
0 |
0 |
| Bowen–Surat |
18 |
20 |
24 |
23 |
24 |
24 |
| Canning |
0 |
0 |
0 |
0 |
0 |
0 |
|
| Carnarvon |
|
|
|
|
|
|
| Barrow Island |
0 |
0 |
0 |
0 |
0 |
0 |
| North West Shelf |
1 911 |
1 817 |
1 963 |
2 160 |
2 067 |
1 500 |
| Other |
0 |
0 |
0 |
0 |
0 |
0 |
|
| Cooper–Eromanga |
|
|
|
|
|
| Queensland |
0 |
0 |
0 |
0 |
0 |
0 |
| South Australia |
783 |
827 |
663 |
597 |
551 |
557 |
| Gippsland |
1 970 |
1 976 |
1 977 |
1 942 |
1 908 |
1 883 |
| Otway |
0 |
0 |
0 |
0 |
0 |
6 |
| Perth |
0 |
0 |
0 |
0 |
0 |
0 |
| Total |
4 682 |
4 639 |
4 628 |
4 722 |
4 550 |
3 971 |
|
| Source: RET, Australian petroleum statistics. |
|
| Trade |
| Australia is a net importer of crude oil and refined petroleum products but a net exporter of LPG. In 2007-08, Australia imported 26 222 million litres of refinery feedstock (crude oil and condensate). The high proportion of imports as a share of total production reflects a significant proportion of Australia’s oil production being located off the north-west coast, which is closer to Asian refineries rather than domestic refineries on the east coast. Conversely, the majority of refinery capacity is located close to the major consumption markets on the east coast in Queensland, New South Wales and Victoria. In 2007-08, Australia was a net exporter of LPG. Japan is Australia’s largest market for LPG, accounting for around 60 per cent of Australia’s LPG exports. |
| |
| 26 |
Major Australian listed oil and gas companies and their resources |
|
| |
|
|
April 2009 A$b |
mboe |
| |
| BHP Billiton |
BHP |
114.1 |
321 |
| Woodside |
WPL |
27.8 |
1227 |
| Origin |
ORG |
13.3 |
989 |
| Santos |
STO |
10.2 |
879 |
| Oil Search |
OSH |
6.2 |
74 |
| Arrow Energy |
AOE |
2 |
200 |
|
| Australian Worldwide |
|
|
| Exploration |
AWE |
1.4 |
53 |
| Beach Petroleum |
BPT |
0.9 |
145 |
| Karoon |
KAR |
0.5 |
1230 |
| Roc Oil |
ROC |
0.3 |
21 |
| Nexus Energy |
NXS |
0.2 |
122 |
| AED Oil |
AED |
0.2 |
na |
| |
Note: Mboe = million barrels oil equivalent.
Source: Annual reports of listed companies. |
| 27 |
Australian imports of petroleum, by source |
|
|
|
|
ML |
ML |
ML |
ML |
ML |
ML |
|
| Crude oil and other refinery feedstock |
|
|
|
|
| Indonesia |
5 380 |
4 012 |
3 328 |
3 929 |
3 391 |
3 239 |
| Malaysia |
2 299 |
4 073 |
4 761 |
3 976 |
3 730 |
4 202 |
| New Zealand |
990 |
708 |
663 |
638 |
635 |
1 974 |
| Other Middle East |
334 |
42 |
158 |
199 |
118 |
43 |
| Papua New Guinea |
1 683 |
1 189 |
1 717 |
2 386 |
2 059 |
2 190 |
| Qatar |
191 |
0 |
77 |
0 |
106 |
0 |
| Saudi Arabia |
3 680 |
1 517 |
3 101 |
1 602 |
1 151 |
573 |
| Singapore |
719 |
596 |
652 |
829 |
841 |
713 |
| United Arab |
|
|
|
|
|
|
| Emirates |
2 294 |
2 207 |
1 917 |
863 |
2 971 |
3 659 |
| Viet Nam |
6 699 |
5 778 |
6 560 |
6 708 |
6 677 |
6 317 |
| Other |
3 690 |
3 375 |
3 122 |
3 286 |
3 665 |
3 311 |
| Total |
27 958 |
23 498 |
26 054 |
24 416 |
25 345 |
26 222 |
|
| Refined products |
|
|
|
|
|
| Indonesia |
57 |
281 |
162 |
98 |
17 |
11 |
| Korea, Rep. of |
144 |
280 |
237 |
961 |
821 |
794 |
| Malaysia |
45 |
97 |
93 |
220 |
8 |
316 |
| Middle East |
140 |
1 036 |
588 |
691 |
642 |
1 047 |
| New Zealand |
17 |
3 |
4 |
84 |
96 |
40 |
| Singapore |
2 832 |
5 904 |
7 395 |
8 452 |
7 681 |
10 257 |
| United States |
407 |
434 |
423 |
456 |
378 |
421 |
| Other |
1 855 |
3 370 |
2 334 |
2 926 |
3 099 |
3 961 |
| Total |
5 497 |
11 405 |
11 236 |
13 887 |
12 742 |
16 848 |
|
| Source: ABARE, Australian commodity statistics. |
|
| |
Since the mid-1990s, Australia’s imports of crude oil from the Middle East have been gradually declining. Instead, crude oil has been increasingly sourced from South East Asia. Viet Nam is currently the largest source for Australian crude oil and condensate imports. In 2007-08, Australia imported 6317 million litres of crude oil and condensate from Viet Nam, while 4275 million litres were imported from the Middle East.
Despite being a net importer, Australia also exports significant quantities of crude oil and condensate, with exports of 15 975 million litres in 2007-08. Around 65 per cent of Australia’s crude oil and condensate is exported to the Asian region, mostly to the Republic of Korea, Singapore and Japan. Australia’s exports of petroleum products are less significant; amounting to 1807 million litres of petroleum products in 2007-08. Around 46 per cent of these exports were destined for New Zealand and another 28 per cent were destined for Singapore.
Reflecting higher prices and stable export volumes, the value of crude oil and condensate exports increased by 26 per cent in 2007-08. Similarly, the value of exports of refined petroleum products increased by 20 per cent in 2007-08. |
| |
| 28 |
Australian exports of petroleum, by destination |
|
|
|
|
ML |
ML |
ML |
ML |
ML |
ML |
|
| Quantity |
|
|
|
|
|
|
| Crude oil and other refinery feedstock |
|
|
|
|
| China |
1 699 |
2 389 |
732 |
404 |
518 |
972 |
| Chinese Taipei |
580 |
125 |
916 |
346 |
446 |
343 |
| Japan |
3 402 |
2 079 |
1 927 |
2 201 |
1 957 |
2 280 |
| Korea, Rep.of |
4 012 |
3 778 |
2 787 |
2 725 |
3 873 |
3 701 |
| New Zealand |
784 |
722 |
1 425 |
465 |
1 045 |
600 |
| Singapore |
6 567 |
3 948 |
2 861 |
3 110 |
3 752 |
3 089 |
| United States |
2 944 |
1 808 |
1 154 |
297 |
190 |
1 157 |
| Other |
962 |
2 677 |
3 929 |
3 478 |
4 183 |
3 833 |
| Total |
20 950 |
17 526 |
15 731 |
13 026 |
15 965 |
15 975 |
|
| Liquefied petroleum gas |
|
|
|
|
|
| China |
154 |
696 |
598 |
393 |
308 |
465 |
| Japan |
2 783 |
2 109 |
2 081 |
2 142 |
1 821 |
1 587 |
| Korea, Rep.of |
234 |
0 |
81 |
0 |
384 |
178 |
| Other |
23 |
111 |
84 |
264 |
311 |
359 |
| Total |
3 194 |
2 916 |
2 844 |
2 800 |
2 824 |
2 589 |
|
| Refined products |
|
|
|
|
|
| Fiji |
384 |
122 |
7 |
62 |
4 |
3 |
| Japan |
26 |
29 |
53 |
74 |
84 |
71 |
| New Zealand |
1 250 |
827 |
1 113 |
716 |
872 |
837 |
| Singapore |
246 |
127 |
471 |
771 |
576 |
505 |
| Other Pacific |
861 |
776 |
156 |
274 |
131 |
275 |
| United States |
99 |
123 |
0 |
37 |
6 |
3 |
| Other |
292 |
482 |
63 |
168 |
90 |
113 |
| Total |
3 159 |
2 488 |
1 864 |
2 102 |
1 762 |
1 807 |
|
| Source: ABARE, Australian commodity statistics. |
| 29 |
Value of Australian trade in petroleum |
|
|
|
|
$m |
$m |
$m |
$m |
$m |
$m |
|
| Exports |
|
|
|
|
|
|
| Automotive gasoline |
367 |
280 |
339 |
419 |
468 |
443 |
| Diesel fuel |
366 |
292 |
166 |
238 |
188 |
363 |
| Aviation turbine fuel |
228 |
172 |
108 |
80 |
74 |
120 |
| Fuel oil |
29 |
21 |
51 |
215 |
84 |
130 |
| Aviation gasoline |
29 |
20 |
26 |
54 |
69 |
73 |
| Kerosene |
0 |
0 |
0 |
0 |
0 |
0 |
| Lubricants |
141 |
100 |
112 |
139 |
157 |
152 |
| Other products |
39 |
33 |
41 |
52 |
57 |
41 |
| Total refined |
|
|
|
|
|
| products |
1 198 |
918 |
844 |
1 195 |
1 098 |
1 321 |
|
| Liquefied |
|
|
|
|
|
|
| petroleum gas |
855 |
647 |
804 |
1 002 |
1 038 |
1 182 |
| Bunkers |
775 |
696 |
951 |
1 322 |
1 295 |
1 457 |
| Crude oil and |
|
|
|
|
|
| other refinery |
|
|
|
|
|
| feedstock |
6 402 |
5 055 |
6 330 |
6 638 |
8 317 |
10 487 |
| Liquefied natural gas |
2 607 |
2 174 |
3 199 |
4 416 |
5 222 |
5 854 |
|
| Imports |
|
|
|
|
|
|
| Automotive |
|
|
|
|
|
|
| gasoline |
569 |
1 168 |
1 463 |
2 342 |
1 872 |
2 719 |
| Diesel fuel |
561 |
1 134 |
1 933 |
4 071 |
3 466 |
6 160 |
| Aviation turbine fuel |
146 |
220 |
483 |
527 |
668 |
1 505 |
| Fuel oil |
180 |
313 |
364 |
569 |
536 |
831 |
| Lubricants |
190 |
206 |
288 |
418 |
495 |
477 |
| Liquefied |
|
|
|
|
|
|
| petroleum gas |
76 |
166 |
143 |
198 |
261 |
436 |
| Other products |
328 |
388 |
448 |
637 |
1 285 |
1 331 |
| Total refined |
|
|
|
|
|
| products |
2 050 |
3 595 |
5 123 |
8 761 |
8 583 |
13 459 |
|
| Crude oil and other |
|
|
|
|
|
| refinery feedstock |
8 610 |
6 594 |
9 995 |
12 820 |
13 360 |
17 059 |
|
| Source: ABARE, Australian commodity statistics. |
|
| Prices |
In December 2008, oil prices in World Trade Weighted Average terms traded at US$40 a barrel, prices not seen since late 2004. In the first half of 2008, world oil prices averaged US$112 a barrel and were supported by growing world oil demand, weak non-OPEC output and speculative demand for commodities. Since oil prices peaked at US$147 a barrel in July 2008, they have fallen by 70 per cent and are estimated to have averaged US$86 a barrel in the second half of 2008 and US$57 a barrel in the December quarter.
The rapid fall in oil prices has been caused by falling demand. This fall in demand has been driven by two factors. First, consumption fell in response to record high prices. Second, consumption was affected by the global financial crisis, which led to slower economic growth in most developing economies and recession in many countries, including the United States and Japan. For 2008 as a whole, oil prices averaged around US$98 a barrel, an increase of 40 per cent compared with 2007. |
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