Australia: Tap new oil wells or pay a heavy price

The Federal Government has backed a push to open new frontiers for Australia’s oil and gas supply, warning that failure to discover the next big oilfield could cost the country up to $27 billion a year.

A report by the Australian Petroleum Production and Exploration Association has found that only a quarter of Australia’s oil and gas reserves have been explored, and without further oil discoveries, Australia faces a trade and energy crisis.


Australia’s crude oil and condensate production has declined from nearly 100% of Australia’s needs in 2000 to just over 60% today.

Without significant new discoveries, it will decline to an anticipated 32% by 2017.

That translates into a decline in the petroleum and petroleum-products trade balance from a surplus of $900 million in 2000, to a deficit of $13.7 billion today and a projected $28 billion deficit in 2017.

The Age