Rick Wilkinson
OGJ Correspondent
MELBOURNE, Mar. 15 -- The Australian government and petroleum industry have jointly launched an outline plan to increase Australia's flagging oil production, make Australia one of the world's top five LNG exporters, and double domestic use natural gas.
The plan involves a strategic alliance between the upstream oil and gas industry represented by the Australian Petroleum Production and Exploration Association (APPEA) and the federal, state, and Northern Territory governments.
Its aim is to increase economic growth and resource security in Australia. The strategic goals are to ensure that by 2015 oil self-sufficiency levels will remain at least at 2006 levels, that LNG production will exceed 50 million tonnes/year, that natural gas as a competitive feedstock for processing will be doubled, and that gas provide primary energy for 70% of all new electric power generation capacity.
Industry and Resources Minister Ian Macfarlane said the strategy required a change in business and community attitudes about energy production and greater acceptance of gas options.
APPEA Chief Executive Officer Belinda Robinson noted that impediments to exploration in Australia need to be addressed. The country remains very lightly explored, and regenerating interest in exploration is central to the new initiative, she said.
An issues paper outlining the strategy will be circulated for public comment by the end of this month, and the industry will publish a final strategy document by yearend to build on government initiatives already in existence. These include the federal government's Energy White Paper and the LNG Action Agenda.
A leadership group chaired by Agu Kantsler of Woodside Energy Ltd. has been established. It comprises representatives from industry, government, and research organizations.
Industry and government have become increasingly concerned about Australia's rapidly falling oil and condensate production. In 2003-04 the country imported $1.5 billion (Aus.) more oil and condensate than it exported. In 2004-05 the net import bill was $3.7 billion (Aus.).
Based on current oil prices, the net import bill could be $20 billion (Aus.) by 2015 if the indigenous production decline is not halted.
