Australia is a petroleum producer with significant oil resources, extracting crude oil, condensate, and liquefied petroleum gas (LPG). Despite domestic production, Australia remains a substantial importer of petroleum products to meet energy demands.
Australia’s Oil Production and Reserves
Australia’s oil production, including crude oil, condensate, and LPG, totaled approximately 152 million barrels (MMbbl) in 2021-22. Production largely originates from offshore fields, with about 80% from the North West Shelf in 2022. This region, encompassing the Northern Carnarvon, Browse, and Bonaparte basins, is a major source.
The Bass Strait, off Victoria’s Gippsland coast, has historically been a prolific oil and gas province, contributing to national output. Onshore, the Cooper-Eromanga Basin in South Australia and Queensland also contains conventional oil resources.
Australia’s conventional oil resources (2P reserves) were estimated at 1,408 MMbbl in 2022. Crude oil 2P reserves were 251 MMbbl, condensate 1,017 MMbbl, and LPG 140 MMbbl. Australian crude oil is typically light and sweet, attractive for export to Asian refineries.
Oil Consumption and Imports
Australia’s domestic oil consumption reached 1.01 million barrels per day in 2023. As a net importer, Australia met about 83% of its oil requirements through imports in 2022.
Refined petroleum imports totaled $35.3 billion in 2023, making Australia the third largest global importer. Crude oil imports averaged 153.256 thousand barrels per day in December 2023. This reliance stems from declining domestic production and limited refining capacity.
Australia operates only two major oil refineries, supplying 15-20% of national fuel needs. Domestic crude is often not optimally suited for local refineries. It is more economical to export Australian crude to larger Asian refineries (e.g., Singapore) and then import refined fuels.
Future Outlook for Australia’s Oil Sector
Australia’s domestic crude oil production indicates rapid decline, potentially ceasing within six years without new commercial discoveries. Exploration activities decreased over the past two decades, particularly offshore. However, 2024 figures show a rebound in onshore and offshore oil and gas exploration expenditure.
The global energy transition and Australia’s net-zero emissions commitment by 2050 influence the oil and gas sector. While the industry invests in emission reduction and low-carbon technologies, oil’s role is anticipated to change. Oil and gas projects still represent a substantial portion of committed investments in Australia’s resources sector.