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Oil and gas overview

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(Last updated: 25 Jun 2008)

Overview

The oil and gas industry is a major contributor to the Australian economy. In 2006-07 the industry accounted for about 3.8 per cent of the total GDP and generated estimated revenue of A$39.1 billion and A$33.6 billion, respectively.

Australia’s biggest export in the industry is LNG. Australia is now the 18th largest producer of natural gas, the seventh largest exporter of LNG in the world and the third-largest LNG exporter in the Asia-Pacific Region. The outlook for Australia’s LNG industry is for continued high growth, with exports forecast to rise dramatically from 7.8 million tonnes in 1999 to 20 million tonnes by 2010.

A few facts and figures:

  • Australia is a net exporter of energy (coal and natural gas) and a net importer of oil.
  • Australia’s natural gas and oil production for 2006-07 amounted to an estimated 28,000 megalitres of oil, 4700 megalitres of LPG and 45 million cubic feet of natural gas.
  • Australia’s natural gas reserves are among the largest in the Asia Pacific region.
  • Australia’s proven natural gas reserves have doubled in recent years with much more exploration yet to be done.
  • At present demand for LNG exceeds supply, but infrastructure is being developed to bring more of Australia’s natural gas reserves to the market.

Key opportunities

Although current supply is fully committed, LNG is still seen as the biggest growth area and opportunity in the oil and gas industry, particularly as demand grows for alternate energy sources. Because of its long history and experience in the oil and gas industry, Australia has the capability to provide expertise, equipment and services to the LNG sector.

Export opportunities include:

  • Exploration and drilling expertise and services for offshore wells.
  • Developing and managing fixed offshore facilities, floating production systems, and offshore-onshore pipelines.
  • Pipeline engineering.
  • Pipeline research, construction and operation of long distance, high pressure, thin-wall pipelines.

Priority markets where Austrade has significant market development activities are Russia and Saudi Arabia. However, there are 12 markets identified by our network with the greatest opportunities:

  • Bahrain
  • Bangladesh
  • Brazil
  • Brunei
  • Indonesia
  • Iran
  • Iraq
  • Kuwait
  • Malaysia
  • Qatar
  • Russia
  • Saudi Arabia

How can we help you?

With a worldwide network of highly experienced and qualified staff, Austrade provides a number of dedicated and tailored services to Australian exporters.

Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au.

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