Oz Production Hits Record in 1H2018

Australian oil and gas production hit record during January-June (1H2018) period, increasing by 13.2% year on year to 870.4 million barrels of oil equivalent, EnergyQuest said in its September 2018 EnergyQuarterly report released September 11.

Chevron extended its lead over Shell as Australia’s largest producer in 2Q2018, with production of 35.4mn boe versus Shell’s 32.1mn boe, according to EnergyQuest.

Gross LNG production during 1H2018 was a record 61.4mn metric tons, 19.4% higher year on year while LNG revenue was A$31bn (US$22bn). LNG prices and revenues have surged thanks to rising oil prices and strong Chinese demand, the report said.

Domestic gas flowed consistently from Queensland to the other states in 2Q2018. Queensland domestic gas production in 2Q2018 was equivalent to 15.8% of gas used for LNG exports (including fuel gas). But increased Queensland supplies were unable to offset production declines in Victoria, the report said.

EnergyQuest expects the east coast gas market to remain tight in 2019. “Accordingly, east coast gas producers should prepare for heavy-handed political intervention over the next year, regardless of who wins the next federal election,” EnergyQuest said. Australian Labor Party, which is in opposition, recently said it will put in tighter controls on LNG exports to rein in rising domestic gas prices and ease supply shortage if it wins the elections.