Oil and gas exploration in Australia in 2014—a year of extremes

Abstract

In 2014, explorers in Australia experienced a range of highs and lows. There have been discoveries in new play types such as Phoenix South–1 in the Roebuck Basin, offshore WA, as well as discoveries that rejuvenate mature basins such as Seneco–3 in the onshore Perth Basin and a number of wells demonstrating unconventional gas flows in the Cooper Basin. Exploration lows include the inevitable unsuccessful wells, the general low level of drilling activity both offshore and in some states, frustrations at approval delays and constraints—particularly in NSW and Victoria—and the sharply contracting business environment towards the end of 2014 as the oil price rapidly fell to its lowest levels in five years. This PESA review looks in detail at the trends and highlights for oil and gas exploration both onshore and offshore Australia in 2014; not just outcomes with the drill bit, but also leading indicators such as seismic data acquisition and permit awards. It also seeks to be insightful and to make conclusions about the condition of oil and gas exploration in Australia, as well as comment on future implications for the industry.