Lyla Lindsey
Oil is a crucial energy resource for Australia, which relies on liquid fuels for more than half of its energy demands. While the country has limited identified conventional oil resources, it has significant undiscovered unconventional oil resources, including shale oil, tight oil, basin-centred oil, and coal oil. Oil shale deposits are found in Queensland, New South Wales, South Australia, Victoria, and Tasmania, with several companies actively developing oil shale projects. Australia's oil production has been in decline since 2009, and it is a net importer of oil, with a large proportion of its refinery feedstocks sourced internationally. The country's oil and gas sector is dominated by international companies, and the government is committed to ensuring fuel security and supporting the transition to net-zero emissions.
| Characteristics | Values |
|---|---|
| First oil discovery | Near Lakes Entrance, Victoria in 1924 |
| First flowing oil | Rough Range on the North West Cape in 1953 |
| First commercial natural gas field | Dongara in the Perth Basin in 1964 |
| Oil reserves | 1,193,000,000 barrels as of 2016 |
| Oil production | 373,728 barrels per day as of 2016 |
| Oil imports | 8% of consumption (86,930 barrels per day) as of 2016 |
| Oil consumption | 1,114,645 barrels per day as of 2016 |
| Oil exports | 214,578 barrels per day in 2018 |
| Oil refineries | Altona, Geelong, and Lytton as of 2023 |
| Retail downstream business | Dominated by Ampol with 1,900 stores across the country as of October 2022 |
| Oil reserves locations | Bonaparte, Browse, Carnarvon, and Gippsland basins |
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Oil reserves and production
Oil reserves in Australia are limited, with over 95% of the country's oil reserves located offshore. As of 2016, Australia held 1,193,000,000 barrels of proven oil reserves, ranking 38th in the world and accounting for about 0.072% of the world's total oil reserves. The country's oil reserves are concentrated in the Bonaparte, Browse, Carnarvon, and Gippsland basins, with over half located in the Northern Carnarvon and Roebuck basins.
Australia's oil production has been in decline since 2009, with new reserve developments failing to match the rate of depletion in existing fields. In 2016, Australia's oil production was 373,728 barrels per day, ranking 31st in the world. However, in 2019, oil production increased due to the start-up of the Greater Enfield, Ichthys, and Prelude projects on the North West Shelf. Despite this, Australia remains a net importer of oil, with only around 12% of refinery feedstock domestically produced. The country's refineries import a large proportion of their crude oil supply, with over half of the oil product imports coming from Singapore and South Korea.
The first oil discovery in Australia was made near Lakes Entrance, Victoria, in 1924. However, the country's first flowing oil was discovered by the West Australian Petroleum Pty Ltd (WAPET) joint venture in November 1953 at Rough Range on the North West Cape. The oil and gas industry in Australia is dominated by international companies, including Apache, BHP, Chevron, ConocoPhillips, ExxonMobil, Santos, Shell, and Woodside.
Australia's fuel security is precarious, with the country relying heavily on oil imports from contested regions. The country's refineries import around 83% of their crude oil supply, and by 2030, Australia is expected to be entirely reliant on imported petroleum. This situation has raised concerns about the vulnerability of Australia's oil supply chains, particularly given the lack of investment in local oil refineries and the dispersed nature of the supply chains.
While Australia has some oil reserves and production, there is a growing urgency to transition to cleaner energy sources to address the country's contribution to climate change. The country has significant potential for unconventional liquid petroleum resources, and it has also developed a strong natural gas industry, becoming a leading gas exporter.
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Oil imports
The closure of several Australian refineries has contributed to this increasing dependence on oil imports. By December 2020, three of the country's seven refineries had already closed, and two more were in the process of being converted into fuel import terminals. This trend left only two refineries operational by 2023, further reinforcing the country's reliance on imported oil.
The oil that Australia imports comes from various regions, with Asia being the primary source, accounting for 40% of the country's crude oil imports. Africa and the Middle East are also significant suppliers, contributing 18% and 17% respectively. In 2024, South Korea was Australia's top supplier of petroleum, with imports totaling approximately 15.8 megaliters. Singapore was the second-largest importer, providing about 12 thousand megaliters.
The dispersed nature of Australia's oil supply chains introduces potential vulnerabilities. For instance, the primary fuel port in South Australia, Port Adelaide, relies on a single, narrow shipping channel. Any blockage or incident in this channel could result in significant disruptions to fuel supplies for Adelaide and a large part of the state. Additionally, Australia's oil imports traverse some of the world's most contested regions, further underscoring the precarious nature of the country's fuel security.
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Oil refineries
The first oil discovery in Australia was made near Lakes Entrance, Victoria, in 1924. Australia's first flowing oil was discovered by the West Australian Petroleum Pty Ltd (WAPET) joint venture in November 1953 at Rough Range on the North West Cape.
Some notable oil refineries in Australia include:
- Gulf Western Oil, with refineries in Brisbane, Queensland, and Melbourne, Victoria.
- Hi-Tec Oils in Sydney, New South Wales.
- Australian Waste Oil Refineries in Seven Hills, New South Wales, which offers services such as automotive air conditioning and auto electrical services.
However, it is important to note that Australia imports almost all of its oil, and the ongoing closure of refineries means the country is on track to be 100% reliant on imported petroleum by 2030. Australian refineries import about 83% of the crude oil they process from more than 17 countries, mainly in Asia, Africa, and the Middle East. This heavy reliance on imports and the lack of investment in local refineries have raised concerns about Australia's fuel security.
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Oil exploration
The majority of Australia's oil reserves are located offshore, with over 95% of oil reserves found in the Bonaparte, Browse, Carnarvon, and Gippsland basins. The Cooper-Eromanga basin in South Australia and Queensland holds the greatest quantity of identified remaining conventional oil resources onshore. Recent exploration in the Bedout Sub-basin (Roebuck Basin) has resulted in the discovery of new oil and gas accumulations in the Phoenix South and Dorado fields, sourced from a Lower Triassic petroleum system. This system is likely to extend into other exploration areas and increase the prospective resources on the North West Shelf, a significant oil-producing region.
The oil and gas industry in Australia is dominated by international companies, including Apache, BHP, Chevron, ConocoPhillips, ExxonMobil, Santos, Shell, and Woodside. These companies often operate through joint ventures, which facilitate risk sharing and allow smaller businesses to participate in production without raising large amounts of capital. However, the country's refining capacity is diminishing due to increased competition from Asia, and Australia's refineries import around 83% of their crude oil supply.
Australia's fuel security is precarious, with the country relying on oil shipments from contested regions and vulnerable supply chains. The closure of refineries and the lack of a sufficient oil reserve make Australia increasingly reliant on imported petroleum, with projections that it will be 100% reliant by 2030. This situation highlights the urgency for Australia to transition to cleaner energy sources and reduce its dependence on fossil fuels.
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Oil consumption
The country's oil consumption has fluctuated over the years, with an all-time high of 1,075.165 barrels per day in 2018 and a record low of 343.872 barrels per day in 1965. As of December 2023, Australia's oil consumption was reported at 1,056.211 barrels per day.
While Australia does produce some oil, it is not sufficient to meet the country's demand. In 2016, Australia imported 8% of its oil consumption, amounting to 86,930 barrels per day. The country's oil refineries also import a significant portion of the crude oil they process, with approximately 83% coming from over 17 countries, mainly from Asia, Africa, and the Middle East.
The retail downstream business in Australia is dominated by Ampol, which has a wide network of stores and fuel stations across the country, including co-branded outlets operated by EG Australia, Coles Express, Liberty, and Westside.
Australia's fuel security has been a concern due to its reliance on imports and the closure of several refineries. By 2030, the country is projected to be entirely dependent on imported petroleum. The dispersed nature of Australia's oil supply chains also makes them vulnerable to disruptions in various parts of the world.
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Frequently asked questions
Australia has some oil reserves, but it is a net importer of oil, with only around 12% of refinery feedstock domestically produced. Most of Australia's oil is produced on the North West Shelf, with other reserves in the Bonaparte, Browse, Carnarvon and Gippsland basins.
Australia imported around 360,000 barrels of oil per day in 2018, with refineries importing around 83% of their crude oil supply. In 2016, Australia imported 86,930 barrels of oil per day, which was 8% of its oil consumption.
More than half of Australia's oil imports come from Singapore and South Korea. Australia also imports oil from over 17 countries, mainly in Asia (40%), Africa (18%) and the Middle East (17%).
Yes, in 2018, Australia exported 214,578 barrels of oil per day, which made up nearly 60% of its imports for that year.
