2 015

K E Y S TAT I S T I C S

2 World supply of oil and LNG

World oil supply averaged 86.7 million barrels a day in 2013,
an increase of 0.5 million barrels a day from 2012.
Share of world oil supply 2013
OPEC 42.5%

Russian Federation 12.4%

USA 11.5%

Other North America 7.9%

Europe 7.4%

South America 8.4%

China 4.8%

AsiaPacific 4.7%

Middle East and Africa 0.4%

SOURCE: BP STATISTICAL REVIEW 2014

Top 10 LNG exporting countries 2013 (billion cubic metres)

Qatar
Malaysia
Australia
Indonesia
Nigeria
Trinidad & Tobago
Algeria
Russian Federation
Oman
Yemen
0

20

SOURCE: BP STATISTICAL REVIEW 2014

40

60

80

100

Energy use in Australia

Oil remained Australias largest primary energy source in

201314, followed by coal and natural gas.
Share of primary energy consumption 201314
Oil 37.7%
Natural gas 23.6%
Coal 33.1%
Renewables 5.6%

SOURCE: 2014 AUSTRALIAN ENERGY UPDATE

The global market is adjusting to the new oil supplies

(muchfrom US shale regions) and less robust global
demandgrowth. Global supply has increased at a greater
pace than global demand.
The real price of oil (US$ per barrel)
150
120
90
60
30
0

1999

2001

2003 2005 2007

WTI spot price FOB

2009

2011 2013 2015

Brent spot price FOB

S O U R C E : U S E N E R G Y I N F O R M AT I O N A D M I N I S T R AT I O N

4 Productionpetroleum liquids
Australias production of oil, condensate and LPG has been
trending down since it peaked in 2000.
Historical Australian petroleum liquids production
(millions of barrels)
300
250
200
150
100
50
0

1998

2000

2002

2004

2006

SOURCE: APPEA

2008
Crude

2010 2012
Condensate

2014
LPG

Production of petroleum liquids by state (millions of barrels)

NSW
NT
Qld
SA
Tas
Vic
WA
Total

Crude
2013

2014

1.8
5.0
7.2

9.3
44.6
67.9

1.7
5.2
8.3

11.8
52.4
79.4

Condensate
LPG
2013 2014
2013

1.6
1.3
0.6
7.8
36.6
47.9

1.6
0.1
0.5
8.5
33.6
44.3

2.2

0.6
10.9
7.9
21.6

2014

2.4

0.4
11.4
6.8
21.0

SOURCE: APPEA | Note: includes production from Commonwealth Waters adjacent to each state
orterritory and excludes production from the JPDA.

Productiongas

Australias production of natural gas has more than doubled

since 1998. This increase in production has met both
domesticand international market needs.
Historical Australian natural gas production (mmcf)
2000
1000
0

1998

2000

SOURCE: APPEA

2002
LNG

2004 2006 2008 2010 2012 2014

Domestic gas
Natural gas from coal seams

Australia has significant quantities of discovered gas resources,

many of which remain undeveloped. Opportunities exist to develop
new gas projects, including for residential and commercial use,
domestic gas processing industries and export sales.
Production of natural gas by state (mmcf)
LNG
NSW
NT
Qld
SA
Tas
Vic
WA
Total

Domestic gas

2013

2014

2013

Natural gas from

coal seams
2014
2013
2014

887.9
887.9

968.8
968.8

0.5
96.7
4.3
17.3
341.1
384.1
844.0

1.0
103.3
14.7
338.5
383.0
840.5

2.7
230.1
232.8

4.6
220.5
225.1

SOURCE: APPEA | Note: includes production from Commonwealth Waters adjacent to each state
orterritory and excludes production from the JPDA.

6 Petroleum exploration
The long-term growth in the Australian oil and gas industry
depends on the level of exploration.
Oil and gas cannot be produced without first locating
newresources and these cannot be discovered without
drillingwells.
The rising cost ofoil and gas exploration has coincided
withareduction in the number of offshore exploration
wellsdrilled, which has fallen by more than two thirds
sinceitspeak in 1998.
Annual offshore exploration expenditure and activity
70

3500

60

3000

50

2500

40

2000

30

1500

20

1000

10

500

1999

2001

2003

SOURCE: ABS 2014, APPEA

2005

2007

Wells spudded

2009

2011 2013
Exploration $m

Economic significance
of the industrytrade

Australia imports and exports significant quantities of petroleum

and petroleum-related products. Australia had a surplus in the
trade of oil and gas until 200304, but has been a net importer
since that time. Australia is expected to remain a net importer in
the short term, with the increase in LNG and condensate exports
somewhat offsetting the reduction indomestic oil production.
Imports and exports of petroleum products ($ billion)
40
30
20
10

19

98
19 99
99
20 00
00
20 01
01
20 02
02
20 03
03
20 04
04
20 05
05
20 06
06
20 07
07
20 08
08
20 09
09
20 10
10
20 11
11
20 12
12
20 13
13
1
4

SOURCE: DEPARTMENT OF
INDUSTRY AND SCIENCE

Exports
(excl. LNG)

LNG exports

Imports

Oil and gas imports and exports 201314 ($ billion)

Crude
LNG
LPG
Products
Bunkers
Total

Exports
11.1
16.3
1.3
0.5
1.7
30.9

SOURCE: DEPARTMENT OF INDUSTRY AND SCIENCE

Imports
21.9

20.5

42.4

Economic significance
8 of the industrytaxation
The fiscal framework is a key factor that shapes investment
decisions in the oil and gas industry. Producers are confronted
with an array of taxes, charges and fees covering petroleum
activities. Fiscal imposts include resource taxes (including
the petroleum resource rent tax, petroleum royalties and
production excise), company income tax and a wide variety of
other taxes, fees and charges. On average, taxes account for
just under half ofthe industrys overall level of pre-tax profit.
Estimated petroleum industry profit (before tax)
andtaxation payments ($ billion)
80%

15

60%

10

40%

20%

0%

19
98
19 99
99
20 00
00
20 01
01
20 02
02
20 03
03
20 04
04
20 05
05
20 06
06
20 07
07
20 08
08
20 09
09
20 10
10
20 11
11
20 12
12
1
3

20

Taxes and
charges

Profit plus taxes

and charges

Tax as a percentage
of pre-tax profit

SOURCE: APPEA FINANCIAL SURVEY

Total payments have averaged around $8 billion per year over

the last five years. Total payments are expected to increase
in the coming years as projects currently under construction
start production.

Industry investment

The oil and gas industry has traditionally invested amounts that
are greater than its level of profits. Since 199899, based on the
value of total assets, the industry spending on capital investment
is more than double its cumulative profits over the same period.
Asset values and cumulative profits ($ billion)
300
200
100

19

98

19 99
99

20 00
00

20 01
01

20 02
02
0
20 3
03

20 04
04
0
20 5
05

20 06
06
0
20 7
07

20 08
08

20 09
09

20 10
10
1
20 1
11

20 12
12
1
3

SOURCE: APPEA FINANCIAL SURVEY

Total industry
assets

Cummulative net
industry profit

The number of projects in the publicly announced and feasibility

stages has fallen for the second year in a row.
LNG, gas, oil major project investment pipeline, October 2014
2013
2014
No. of
Range
No. of
Range
projects A$billion projects A$billion

Change

Publicly announced*

2527+

15+

-2

Feasibility stage

105

30

-2

Committed

14

195

13

197

-1

Completed

0.5

0.4

SOURCE: DEPARTMENT OF INDUSTRY AND SCIENCE

10 Safety information
There has been a significant improvement over the last
decade in the Australian oil and gas industrys rates of
injuries and safety performance. In that time, the industry
hasexperienced rapid growth and new operations.
Total recordable injury frequency rate
(per million hours worked)
15
12
9
6
3
0

1999

2001

2003

2005

2007

2009

2011

2013

SOURCE: APPEA

Lost time injury frequency rate (per million hours worked)

3.5
3.0
2.5
2.0
1.5
1.0
0.5
0

1999

2001

SOURCE: APPEA

2003

2005

2007

2009

2011

2013

Resources

11

tcf

tcf

tcf

tcf

33

132

119

20

141

20

391

EDR

930

1975

932

SDR

325

799

413

57

60

~10

111

All identified
resources

1255

2716

1345

166

203

Resources:
identified,
potential and
undiscovered

1255

2716

1345

227

235

437

Inferred

Total gas

Tight gas

tcf

99

Conventional
gas

Shale gas

mmbbl mmbbl

Coal seam gas

mmbbl

LPG

Crude oil

Condensate

Australias estimated petroleum resources

SOURCE: GEOSCIENCE AUSTRALIA, DEPARTMENT OF INDUSTRY AND SCIENCE

Selected international proven gas reserves and rank 2013 (tcf)

Iran (1)
Russian Federation (2)
Qatar (3)
Turkmenistan (4)
United States (5)
Saudi Arabia (6)
United Arab Emirates (7)
Australia (11)
0
SOURCE: BP STATISTICAL REVIEW 2014

300

600

900

1200

Glossary of terms
EDR
FOB
LNG
LPG
mmcf
mmbbl
PJ
SDR
Spudded
tcf

economic demonstrated resources

free on board
liquified natural gas
liquid petroleum gas
million cubic feet
million barrels
petajoules
sub-economic demonstrated resources
the process of commencing a well drilling process removing
rock, dirtandother sedimentary material with the drill bit
trillion cubic feet

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