PETROLEUM EXPLORATION PREVIEW FOR 1967

Abstract

Exploration for petroleum in Australia paused in 1966 and this pause is likely to continue in 1967.The number of wells drilled and seismic activity will both be slightly less in 1967 than in 1966, but the work will generally be directed to more specific targets. The cost of exploration will be somewhat higher than in 1966.During the year off-shore drilling should increase and it is expected that five mobile rigs will be drilling in the offshore areas by the end of the year. The immediate structural targets available for these rigs are in the Gippsland, Bass and Otway Basins (Victoria-Tasmania), the North-West Shelf and Timor Sea-Bonaparte Gulf, and in the Gulf of Papua.Onshore exploration will be concentrated in the western Australian basins, the Surat Basin, the central Great Artesian Basin, and the Gidgealpa region of the southwestern Great Artesian Basin.The success or otherwise of the off-shore drilling will determine the rate of exploration over the next few years. If important discoveries are made off-shore, these may and probably would result in more intensive exploration of the same stratigraphic intervals onshore.The exploration patterns of Australia and several other countries before and after first commercial discovery are compared. This indicates that Australian discovery came early, as compared with other countries, where production has developed since the war, but that post-discovery effort in Australia has been very much less. The main obvious differences appear to be that in Australia the average size of the exploration concession is very much larger and the number of operators (having regard to the areas concerned) is much smaller, than in the other successful countries.There has been a gradual movement towards reducing the size of operating areas in Australia either by obligatory relinquihment or by farmout, but if discoveries are to be made at a satisfactory rate more operators are needed in every basin.The economic environment of Australia vis-a-vis Middle East oil and oil markets is probably the main basic reason for the peculiar exploratory pattern, which has impelled the Government to provide financial incentives to encourage exploration and development.