PESA Australian business environment review 2019

Abstract

This Petroleum Exploration Society of Australia review looks at the major issues that impacted the Australian petroleum business environment in 2019. While the petroleum business in 2020 has been combating an oil price slump and a global economic slowdown driven by the COVID-19 pandemic, 2019 will be remembered as a pivotal year in the petroleum industry. At a global level, climate change moved centre-stage with global protests, extensive media coverage and clear commitments from global players in the resource industry to become net-zero emitters of carbon. Oil prices averaged US$64/barrel for Brent, liquefied natural gas (LNG) prices fell and global CO2 emissions from power generation were flat for the first time. In Australia, petroleum production also increased, driven by LNG production, and Australia became the world’s largest producer of LNG, the world’s largest CO2 injection plant became operational and the regulatory system was tested by current operations and future drilling. Meanwhile, society’s relationship with the petroleum industry was reframed with the linking of extensive bushfires to climate change. This paper will describe each of these issues and frame the issues facing the industry in 2020 and beyond.