• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 5 hours Canada Election Deadlock?
  • 44 mins Is Eating Meat Worse Than Burning Oil?
  • 9 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 18 hours Here's your favourite girl, Tom!
  • 9 hours Clampdown on Chinese capital flight is shutting down their commercial construction in US
  • 2 hours China & Coal: China's 2019 coal imports set to rise more than 10%: analysts
  • 23 hours Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 17 hours IMO 2020:
  • 8 hours Nigeria Demands $62B from Oil Majors
  • 7 hours Devaluing the Yuan
  • 1 day China's Blueprint For Global Power
  • 1 day Deepwater GOM Project Claims Industry First
  • 7 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

A Massive Oil Shortage Here Could Drive Exploration

Very interesting figures on oil production coming out of Australia last week. Showing the nation may be on the verge of a petro-crisis.

Adelaide-based analysts EnergyQuest released their quarterly review of the Aussie oil and gas sector. Noting some stunning changes in production during 2013.

Most notably, oil production across the nation took a tumble. With crude output falling 18.6% as compared to 2012, to 71.9 million barrels.

That figure is even more eye-catching when viewed in a historical context. Being the lowest level of oil production Australia has seen since 1970.

EnergyQuest noted a similar and striking pattern of decline in reserves replacement for Aussie oil. Reporting that replacement rates actually flipped into negative percentages during the past year.

That presumably means that producers failed not only to find more oil--but that they actually suffered negative revisions to previously-booked reserves.

This steep decline in output and reserves is even more urgent when viewed against local crude demand. Which saw Australia consume 346 million barrels of crude oil and transport fuels for 2013, against production of just 140 million barrels of oil and liquids.

This suggests a major supply crunch is in the works here. Which could signal an opportunity in the making.

Australia isn't short on oil prospects. Numerous targets have been shaping up in plays like the Georgina Basin that straddles the Northern Territory and Queensland. Major players like Statoil, Total and Santos have committed to sending as much as $545 million here over the coming years to test new fields.

A lot of this effort is being directed toward unconventional targets like tight sands. The kinds of plays that are very sensitive to taxation and local fiscal regimes for exploration. The recent gloomy production figures may be just the thing to push governments here to improve such terms--giving a lift to the sector, and perhaps making this a go-to locale in the race to unfurl unconventional technology globally.

Nothing's written in stone yet, but it appears the drivers are in place to make this a hot exploration area. Keep an eye out.

Here's to meeting demand,

By Dave Forest




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play