Australia Oil and Gas Upstream Market Report and Forecast 2024-2032

Australia Oil and Gas Upstream Market Outlook

The Australia oil and gas upstream market size was valued at USD 33.68 billion in 2023. The market is further projected to grow at a CAGR of 2.0% between 2024 and 2032, reaching a value of USD 40.49 billion by 2032.

Key Takeaways

• One of the notable developments in the Australian oil and gas upstream sector include the Browse Upstream Development, started in 2023 by Woodside Petroleum, which involves three gas fields with an estimated 15.4 trillion cubic feet of dry gas and 453 million barrels of condensate.

• In 2020, Surat Gas Project in Queensland's on shore Surat Gas Basin was initiated, which focuses on coal seam gas production across 14 petroleum leases and was valued at approximately USD 7.15 billion. The Surat Gas Basin lies between Dalby and Wandoan, contributing to Australia’s upstream sector.

• Australia's significant proven oil reserves, reaching about 2.4 thousand million barrels, offer lucrative opportunities for market players.

The growth of the oil and gas upstream market is primarily driven by factors such as a large proven hydrocarbon resource base and the stability of government regulations. Some of the trends aiding the Australia oil and gas upstream market growth include the dominance of the offshore segment, which contributes significantly to petroleum production in Australia. Additionally, with government support, offshore exploration and production activities are expected to increase notably. However, Australia's shift towards renewable energy sources is likely to influence market dynamics during the forecast period.

Natural gas extraction comprises a significant Australia oil and gas upstream market share due to rising export price of liquefied natural gas, global demand for natural gas, and favourable government policies supporting the sector. Australia's production profile heavily focuses on exporting natural gas, with the country being a prominent global player in this sector. In January 2024, Australia exported 9,135 million cubic meters of LNG. The market for natural gas extraction in Australia is also driven by the increasing demand for cleaner energy sources, particularly in electricity generation.

In contrast, the crude petroleum segment within the Australia oil and gas upstream market plays a crucial role in meeting domestic energy needs and contributing to economic growth. The production of crude oil and condensate in Australia has experienced growth as in January 2024 , Australia produced approximately 450 million litres (ML) of crude oil. The country's reserves are primarily located in Western Australia, although substantial reservoirs are also present in other states like Queensland, South Australia, and the Northern Territory.

Unconventional drilling technologies, particularly horizontal drilling have gained prominence due to their ability to access hard-to-reach reserves efficiently. This technology allows for increased production rates and enhanced resource recovery compared to traditional vertical drilling methods. In Australia, horizontal drilling is utilised to tap into unconventional resources like shale gas and tight oil formations, contributing to the diversification of the country's energy sources.

Market Segmentation

Australia Oil and Gas Upstream Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Oil and Gas Wells Drilling Services

• Crude Oil

• Oil and Gas Supporting Activities

• Natural Gas

Market Breakup by Drilling Technology

• Unconventional
  • Horizontal Drilling
  • Others
• Conventional
  • Vertical Drilling

• Others

Market Breakup by Production Site

• Offshore

• Onshore

Market Breakup by End Use

• Natural Gas Extraction Comprises

• Crude Petroleum Comprises

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Western Australia

• Australian Capital Territory

• Others

Competitive Landscape

Companies are leveraging the country's abundant natural resources and advanced exploration technologies to meet the energy demands of Australia and ensure a steady supply of oil and gas resources.

• Chevron Australia Pty Ltd.  

• Shell Australia Pty Limited   

• BP Australia Pty Limited 

• Origin Energy Limited   

• ExxonMobil Australia Pty Ltd.  

• Woodside Energy Group Limited   

• Santos Ltd.   

• Beach Energy Limited   

• INPEX Corporation   

• Others

Key Highlights of the Report