AUSTRALIAN ENERGY RESOURCE ASSESSMENT
41
Chapter 3Oil
3.1Summary
K e y m e s s a g e s
• Oilisthemostwidelyusedprimarysourceofenergyglobally.ItplaysacriticalroleasatransportfuelinmostcountriesincludingAustralia.
• Australiahasabout0.3percentofworldoilreserves.AustraliahaslimitedreservesofcrudeoilandmostofAustralia’sknownremainingoilresourcesarecondensateandliquefiedpetroleumgas(LPG)associatedwithgiantoffshoregasfields.
• ThereisscopeforgrowthinAustralia’soilreservesinexistingfields,andfornewoildiscoveriesinbothprovenbasinsandinunder-exploredfrontierbasinswhichareprospectiveforpetroleum.
• Thereisalsopotentialtodevelopalternativetransportfuelssuchasbiofuels,coal-to-liquids(CTL),gas-to-liquids(GTL)andshaleoil.
• Australia’soilconsumptionisprojectedtoincreaseoverthetwonextdecadesbuttherateofgrowthisprojectedtobeslowerthaninthepast20years.Domesticcrudeoilproductionisprojectedtocontinuetodecline.
• Intheabsenceofmajornewdiscoveriesandthedevelopmentofalternatives,Australia’snetimportsofliquidfuelsareprojectedtoincrease,risingtobethree-quartersofconsumptionby2029–30.
3.1.1 World oil resources and market• Oilisanimportantenergysource,accounting
foraround34percentofworldprimaryenergyconsumptionin2007.However,itsimportancehasbeendecliningsteadilysincethe1970swhenitsshareofprimaryenergyconsumptionwasaround45percent.
• Worldprovenoilreserveswereestimatedatsome1.4trillionbarrels(equivalentto8.3millionPJ)attheendof2008.Thisisequaltoaround42yearssupplyatcurrentproductionrates.Thisglobalreservestoproductionratiohasbeenmaintainedataround40yearsforthepastdecade.Australiaaccountedforaround0.3percentofthesereserves.
• Worldoilproductionwasaround30.5billionbarrels(174012PJ)in2008.MajoroilproducersincludeSaudiArabia,theRussianFederation,UnitedStates,IranandChina,withtheMiddleEastaccountingfor31percentoftheworld’sproductionin2008.
• Thecostofoilproductionisexpectedtoincreasewiththedevelopmentofdeeperwaterfieldsandtheuseofenhancedrecoverytechnologies.
• Worldoilconsumptionhasincreasedatanannualaveragerateof1.6percentsince2000,toreach31.6billionbarrels(Bbbl,171236PJ)in2008.
• Thefastestgrowingoilconsumingregionisnon-
OECDAsia,whichincludesChinaandIndia.Atpresentmorethanhalfofworldoilconsumptionisusedinthetransportsector.
• WorldoildemandisprojectedbytheInternationalEnergyAgency(IEA)initsreferencecasetoincreasebyaround1percentperyeartoreach36.8Bbbl(210271PJ)in2030.Demandgrowthisexpectedtobeconcentratedinnon-OECDeconomies.
• Worldoilsupplyisalsoprojectedtoincreaseatanaverageannualrateof1percent.OPEC’soilproductionisprojectedtogrowasissupplyfromunconventionalsourcessuchasoilsands,gas-to-liquids,coal-to-liquidsandoilshale.
3.1.2Australia’soilresources• In2008,Australia’sidentifiedoilresourceswere
estimatedat30794PJmadeupof16170PJ(2750millionbarrelsormmbbl)ofcondensate,8414PJ(1431mmbbl)ofcrudeoiland6210PJ(1475mmbbl)ofLPG(liquefiedpetroleumgas).
• Australiahasonlylimiteddomesticsuppliesofcrudeoil,andreliesincreasinglyonimportstomeet demand.
• CrudeoilexplorationinAustraliahasnotrepeatedtheearlysuccessofthe1960swhenthefirstoffshoreexplorationyieldedgiantfielddiscoveriesintheGippslandBasin.AlthoughAustraliahasover
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
42
BONAPARTE BASINTotal produced: 3364
Crude oil remaining: 1205Condensate remaining: 2799
LPG remaining: 1193
BROWSE BASINTotal produced: 0
Crude oil remaining: 82Condensate remaining: 6286
LPG remaining: 1391
CARNARVON BASIN AMADEUS BASINTotal produced: 13 357 Total produced: 112Crude oil remaining: 4839 Crude oil remaining: 24Condensate remaining: 5892 Condensate remaining: 12LPG remaining: 2603 LPG remaining: 0.8
COOPER/EROMANGA BASINSTotal produced: 2856
Crude oil remaining: 370Condensate remaining: 88
LPG remaining: 125 BOWEN/SURAT BASINSTotal produced: 289Crude oil remaining: 41Condensate remaining: 12PERTH BASIN LPG remaining: 10
Total produced: 143Crude oil remaining: 76
Condensate remaining: 0.2
BASS BASINTotal produced: 16
Crude oil remaining: 76 GIPPSLAND BASINCondensate remaining: 247 Total produced: 25 536
LPG remaining: 241 Crude oil remaining: 1699Condensate remaining: 753LPG remaining: 646
DARWIN
CANNING BASINTotal produced: 18Crude oil remaining: 0
BRISBANE
PERTH
ADELAIDE SYDNEY
MELBOURNEOTWAY BASINTotal produced: 11
Condensate remaining: 82
HOBART
150°140°130°120°
10°
20°
30°
40°
AERA 3.1
0 750 km
Liquid hydrocarbon (Crude Oil, Condensate& LPG) resources in PJ
Gas pipelineGas pipeline(proposed)Oil pipeline
Past production Petroleum basin
Condensate resources
Crude oil resources
LPG resources
Figure 3.1 Australiancrudeoil,condensateandnaturally-occurringLPGresources,infrastructure,pastproduction andremainingresources
source: GeoscienceAustralia
300crudeoilfields,mostproductionhascomefromonlysevenmajorfields.
• Estimatesofundiscoveredcrudeoilinprovenbasinsrangefrom9996PJ(1700mmbbl)to29588PJ(5032mmbbl)andundiscoveredcondensatefrom4116PJ(700mmbbl)to35480PJ(6035mmbbl).Petroleumpotentialexistsindeepwaterfrontierbasinsbuttheoilresourceremainsunknown.
• Australia’slargestremainingdiscoveredliquidpetroleumresourceisnowthecondensateandLPGintheundevelopedIchthysgasfieldintheoffshoreBrowseBasin(figure3.1).
• Thescopeforenhancedoilrecovery(EOR)fromidentifiedfieldswasestimatedatabout6468PJ(1100mmbbls)in2005.Additionstoresourcesfromfieldgrowthwereestimatedatabout5880PJ(1000mmbbls)in2004.Intheinterveningperiodsomeofthispotentialhasbeen realised.
• Inaddition,Australiahasalargeunconventionalandcurrentlynon-producingidentifiedshaleoil
resourceof131600PJ(22390mmbbl)whichcouldpotentiallycontributetofutureoilsupply ifeconomicandenvironmentalchallengescan beovercome.
3.1.3Australia’soilmarket• Oilandoilproductshavethesecondlargest
share(1942PJor34percent)ofprimaryenergyconsumptioninAustralia,butdomesticprimaryoil(crudeoil,condensateandLPG)productionaccountsforonly6percentoftotalenergyproduction.Australia’snetimportsofoilandoilproductsrepresented45percentofconsumptionin2007–08.
• Australianprimaryoilproduction(crudeoil,condensateandLPG)peakedin2000–01at1546PJ(276mmbbl).Sincethenprimaryoilproductionhasbeendecliningatanaveragerateof5percentperyearto1059PJ(187mmbbl,29.8GL)in2007–08.
• Australiaisanetimporterofoilandoilproducts.In2007–08,Australia’snetimportsofprimaryoilwerearound383PJ(48mmbbl,7.7GL),valuedat $5.5 billion.
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
43
CHAPTER 3: OIL
3000
2400
1800
1200
600
PJ
0 0
8
16
24
32
40
%
Year
Oil consumption (PJ)
1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2029-00 01 02 03 04 05 06 07 08 30
Share of totalenergy (%)
AERA 3.2
Figure 3.2 Australia’soutlookforoilconsumptionsource: ABARE2009b;ABARE2010
• Australianrefineriesproduced1557PJ(269mmbbl,42.8GL)ofrefinedoilproductsin2007–08.
• Inthepast,Australiawasanetexporterofrefinedoilproducts.SincetheclosureofthePortStanvacrefineryin2003,Australiahasalsobecomeanetimporteroftheseproducts.In2007–08,Australia’snetimportofrefinedoilwasaround430PJ(94mmbbl,15GL),valuedat$12billion.
• Thetransportsectoristhelargestconsumerofoil,accountingforaround70percentofAustralia’stotaluseofoilproducts.
• InABARE’slatestlongtermenergyprojections,whichincludetheRenewableEnergyTarget, a5percentemissionsreductiontargetand othergovernmentpolicies,consumptionofoil andoilproductsinAustraliaisprojectedtoincreaseby1.3percentperyeartoreach2787PJ(equivalenttoabout473mmbbl)in2029–30.Itsshareofprimaryenergyconsumptionisprojectedtoremainaround 36percentin2029–30(figure3.2).
• Australianproductionofcrudeoil,condensateandLPGisprojectedtodeclineatanaveragerateof2percentperyearto668PJby2029–30.
• Netimportsofoilandoilproductsareprojectedtoaccountfor76percentofconsumptionin2029–30.
3.2Backgroundinformation andworldmarket
3.2.1DefinitionsThetermoilencompassestherangeofliquidhydrocarbonsandincludescrudeoilandcondensate.Liquefiedpetroleumgas(LPG)isconsideredalong
withoilinthisstudy.Oilthathasbeenrefinedintootherproductsisreferredtoasrefinedproducts, oilproductsorpetroleumproducts.
Crude oilisanaturally-occurringliquidconsistingmainlyofhydrocarbonsderivedfromthethermalandchemicalalterationoforganicmatterburiedinsedimentarybasins.Itisformedasorganic-richrocksareburiedandheatedovergeologicaltime.Crudeoilvarieswidelyinappearance,chemicalcompositionandviscosity.MostAustraliancrudeoilsareclassifiedaslightoil.Lightcrudeoilsareliquidswithlowdensityandlowviscositythatflowfreelyatstandardconditions:theyhavehighAPIgravityduetothepresenceoflighthydrocarbons.Heavyoils,ontheotherhand,havehigherdensityandviscosity,donotflowreadilyandhavelowAPIgravity(lessthan20°)havinglostthelighterhydrocarbons.Crudeoilisfoundindepositswithorwithoutassociatedgas;thisgasmayincludenaturalgasliquids–condensateandliquefiedpetroleumgas(LPG).Crudeoilcanalsobefoundinsemi-solidformmixedwithsandandwater(oilortarsands)orasanoilprecursor,alsoinsolidform,calledoilshale.Oilfromoilsandsandoilshaleisknownasunconventionaloil(box3.1).
Condensateisaliquidmixtureofpentaneandheavierhydrocarbonsfoundinoilfieldswithassociatedgasoringasfields.Itisagasinthesubsurfacereservoir,butcondensestoformaliquidwhenproducedandbroughttothesurface(figure3.3).
Liquefied petroleum gas(LPG)isamixtureoflighterhydrocarbons,suchaspropaneandbutane,andisnormallyagasatthesurface.Itisusuallystoredandtransportedasaliquidunderpressure.Inadditiontonaturally-occurringLPG,itisalsoproducedasaby-productofcrudeoilrefining.LPGhaslowerenergy
LPG
C5+
C35
MethaneCH4
2 6
Gas atsurface
3 8
4 10
Liquid atsurface
LNG andSales GasEthane
C H
PropaneC H
Gas insubsurfaceButane
C H
Higherhydrocarbons
Condensateand oil
Liquid insubsurface
AERA 3.3
Figure 3.3 Petroleumresourcesnomenclatureintermsofchemicalcomposition,commercialproduct,physicalstateinthesubsurfaceandphysicalstateatthesurface
source: GeoscienceAustralia
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
44
contentpervolumethancondensateandcrudeoil(AppendixE).
Refined productsincludepetroleumproductsusedasfuels(LPG,aviationgasoline,automotivegasoline,powerkerosene,aviationturbinefuel,lightingkerosene,heatingoil,automotivedieseloil,industrialdieselfuel,fueloil,refineryfuelandnaphtha)andrefinedproductsusedinnon-fuelapplications(solvents,lubricants,bitumen,waxes,petroleumcokeforanodeproductionandspecialisedfeedstocks).
Primary oil consumptionincludesallpetroleumuseddirectlyasfuel–crudeoil,condensate,LPGandpetroleumproducts.
Primary oil productionincludescrudeoil,condensateandnaturallyoccurringLPGpriortouseinrefineries.
Oil shaleisafine-grainedsedimentaryrockcontaininglargeamountsoforganicmatter(kerogen),whichcanyieldsubstantialquantitiesofhydrocarbons.Oilshaleisessentiallyaveryrichthermallyimmaturesourcerock:itrequiresheatingtohightemperaturestoconverttheorganicmaterialwithintheshaletoliquidhydrocarbons–shaleoil.Shaleoilisconsideredanalternativetransportfuel,readilysubstitutableforhighgradecrudeoil.
Oil sands,ortarsands,aresandstonesimpregnatedwithbitumen,theveryviscousheavyhydrocarbonsremainingafterthemorevolatilecomponentsofcrudeoilhavebeenlost.Miningandprocessingisrequiredtorecovertheoil.
3.2.2OilsupplychainFigure3.4providesarepresentationoftheoilindustryinAustralia.Theoilindustryundertakestheexploration,developmentandproductionofcrudeoil,condensateandLPG.Moregenerally,thepetroleumindustryalsoincludesdownstreamactivitiessuchaspetroleumrefining,andthetransportandmarketingofrefinedproducts,as wellasnon-energyproductssuchaspetrochemicals andplastics.
Resources and explorationThesupplyofoilbeginswithundiscoveredresourcesthatmustbeidentifiedthroughexploration.Geoscientistsidentifyareaswherehydrocarbonsareliabletobetrappedinthesubsurface,thatisinsedimentarybasinsofsufficientthicknesstocontainmaturepetroleumsourcerocksaswellassuitablereservoirandsealrocksintrapconfigurations(box3.1).Thesearchnarrowsfrombroadregionalgeologicalstudiesthroughtodetermininganindividualdrillingtarget.
IntheAustraliancontext,governmentshavetakenakeyroleinprovidingregionalpre-competitivedatatoencourageinvestmentinexplorationbytheprivatesector(figure3.5).Companyaccesstoprospectiveexplorationareasisbycompetitivebidding,usuallyonthebasisofproposedworkprogram(thatisintendedexplorationeffort)orbytakingequityin(‘farming-into’)existingacreageholdings.
Development and Processing, Transport,End Use Market
Production Storage
WorldOil tanker Market
Exploration Developmentdecision decision
IdentifiedresourcesUndiscovered
resources
AERA 3.4
Transport
Industrial
Commercial
Residential
Other
Exportmarket
Domesticmarket
Condensate LPG Imports Refinedfrom gas fields petroleum
imports
Resources and Exploration
Oil tankerProject
Oilrefinery
Electricitygeneration
Figure 3.4 Australia’soilsupplychainsource: ABAREandGeoscienceAustralia
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
45
CHAPTER 3: OIL
1
Indu
stry
100
10 000
100 000
10 000 000
2km
Gov
ernm
ent Regional understanding
Field/prospectIn-
formedactions
Prospect/field/segment
inventory
Risk Uncertainty Explorationpermit
Seismic Seismic Geologyimaging attributes modelling
Play focus
Basin statistics Play risk-field size distance Lead inventory -CHS maps-analogs - success rates
play fairway analysis, stratigraphic drilling Precompetitivestudy
Structural Sequence Petroleumstyles stratigraphy systems
Stratigraphy Basic mapsData Plate-well data -structuremanagement reconstructions-fieldwork -isopachs Documentation
Regional seismicgravity & magnetic
AERA 3.5
Figure 3.5 Theresourcediscoverytrianglesource: GeoscienceAustralia(adaptedfromBP)
Reflectionseismicistheprimarytechnologyusedtoidentifylikelyhydrocarbon-bearingstructuresinthesub-surface.Drillingisthenrequiredtotestwhetherthestructurecontainsoilorgas,orboth,orneither.Theinitialdiscoverywellmaybefollowedbyappraisaldrillingand/orthecollectionoffurthersurveydata(often3Dseismic)tohelpdeterminetheextentofthe accumulation.
Development and productionOnceaneconomicallyrecoverableresourcehasbeenidentified,itisamatterofdecidingwhethertoproceedtodevelopmentbasedonprojecteconomics,marketconditions(oilpricesandcostofextractiontechnologiesandfacilities)andtheavailabilityoffinance.
Thedevelopmentphaseinvolvestheconstructionoftheinfrastructurerequiredfortheproductionoftheoilresource.Dependingonthelocation,thisinfrastructureincludesdevelopmentwells,productionfacilities,agatheringsystemtoconnectindividualwellstoprocessingfacilities,temporarystorageandtransportfacilities.
InAustralia,theoptionsforoffshoredevelopmentincludeafloatingproductionandstorageoffloadingfacility(FPSO)as,forexample,theEnfieldoildevelopmentintheCarnarvonBasin,orbuildingaproductionplatformandpipingtheoilashore,asat
theCliffHeadfieldinthePerthBasin.Wherethepipelineinfrastructureiswellestablished,newcrudeoildiscoveriescanberapidlybroughtonstreamasintheinshoreCarnarvonBasin.Onshore,theoptionsaretolinkintoorextendtheoilpipelinenetworkor,incasesofsmallremotefields,asatBlinaintheCanningBasin,totransporttheoilbyroad.
Theproductionphaseincludesextractingoilfromthereservoirandseparatingimpurities.Attheinitialstageofextraction,thenaturalpressureofthesubsurfacereservoirisgenerallysufficientfortheoiltoflowtothesurface.Ifthereservoirpressureisinsufficient,anadvancedrecoverymethodisusedtoincreasereservoirpressure.
Condensateisacomponentofnaturalgasandisproducedduringgasorcrudeoilfielddevelopment. Insomecasesthecondensateisextractedandthegasisreinjectedinaprocesscalledgasrecycling.
Processing, transport, storage and tradeCrudeoilandcondensateisnotgenerallyusedinitsraworunprocessedform,apartfromsomelight-sweetcrudeoilwithlowsulphurcontentwhichcanbeusedasaburnerfuelforsteamgenerationinindustrialapplications.Themajorityofcrudeoilisprocessedinarefinerytoproducerefinedproducts,suchasgasoline,diesel,aviationfuel,fueloil,
BOx 3.1 PETROLEUMSySTEMSANDRESOURCEPyRAMIDS
Oilaccumulationsaretheproductsofa‘petroleum
system’(MagoonandDow1994).Thecritical
elementsofapetroleumsystemare:
• source–anorganicrichrock,suchasanorganic
richmudstone;
• reservoir–porousandpermeablerock,suchas
sandstone;
• seal–animpermeablerocksuchasashaleor
mudstone;
• trap–asub-surfacestructurethatcontainsthe
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
46
accumulation,suchasafaultblockoranticline;
• overburden–sedimentsoverlyingthesourcerockrequiredforitsthermalmaturation;and
• migrationpathwaystolinkthematuresourcetothetrap(figure3.6).
Inadditiontothesestaticelements,theactualprocessesinvolved–trapformation,hydrocarbongeneration,expulsion,migration,accumulationandpreservation–mustoccur,andinthecorrectorder, forthepetroleumsystemtosuccessfullyoperateandforoilaccumulationstobeformedandpreserved. Itisessentialthatthesourcerockhasbeenthrough(orisstillwithin)theoilwindow,thezoneinthesubsurfacewheretemperaturesaresufficientforthermalalterationoftheorganicmattertooil.Athighertemperatures,belowthebottomoftheoilwindow,oilstartstobebrokendown(cracked)togas.
Unconventionaloilaccumulationsreflectthefailureorunder-performanceofthepetroleumsystem.Oilshaleisanexamplewhereathermallyimmaturesourcerockhasnotgeneratedandexpelledhydrocarbons.Oilortarsandsoccurwhereconventionalcrudeoilhasfailedtobetrappedatdepthandhasmigratedneartothesurfaceandhasbecomedegradedbyevaporation,biodegradationandwaterwashingtoproduceaviscousheavyoilresidue.
Thepetroleumresourcepyramid(McCabe1998)describeshowasmallervolumeofeasilyextractedconventionalgasandoilisunderpinnedbylargervolumesofmoredifficultandmorecostlytoextract
unconventionalgasandoil(figure3.7).Forthe
unconventionalhydrocarbonresources,additional
technology,energyandcapitalhastobeappliedto
extractthegasoroil,replacingthenaturalaction
ofthegeologicalprocessesofthepetroleum
system.Technologicaldevelopmentsandrisesin
pricecanmakethelowerpartsoftheresource
pyramidaccessibleandeconomictoproduce.The
recentdevelopmentofoilsandsinCanadaandof
shalegasintheUnitedStatesareexampleswhere
risingenergypricesandtechnologicaldevelopment
hasfacilitatedtheexploitationofunconventional
hydrocarbonresourceslowerinthepyramid.
Conv. Conv.Oil Gas
Shale Oil Gas Hydrates
Increased breakevenprice required
Smaller volumes, Increased technologyeasy to develop requirements
Larger volumes,difficult todevelop
Heavy Oil CSG
Tight Gas andOil SandsShale Gas
AERA 3.7
Figure 3.7 PetroleumResourcePyramidsource: GeoscienceAustralia(adaptedfromMcCabe1998andBranan2008)
A A’Trap TrapTrap
Geographic extent of petroleum system
Present day
Overburden Source
Seal Underlying sequence
Reservoir
Top of oil window
Bottom of oil window
Petroleum accumulation
Basement
Stratigraphic extentof petroleum system
AERA 3.6
Figure 3.6 Petroleumsystemelementssource: MagoonandDow1994(modified)
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
47
CHAPTER 3: OIL
keroseneandLPG.Somecrudeoilandcondensatecanalsobeconvertedintonon-energyproductsandusedasafeedstockinthepetrochemicalindustry.
Oncerefined,end-useproductscanbestoredandtransportedtothedemandcentreviaroad,rail,seaorpipeline.
Around70percentofAustralia’scrudeoilandcondensateproductionoccursoffthenorth-westcoast.Around60percentofthisproductionisexported,reflectingtheproximitytorefineriesinsouth-eastAsia.In2008–09,approximately63percentofAustralia’srefineryinputrequirementswereimported.ThispartlyreflectstheinsufficientcrudeoilandcondensateproductionineasternAustralia,particularlywithinreasonabledistanceofrefineriesinSydneyandBrisbane.
In2008–09,around40percentofAustralia’srefinedpetroleumproductswereimported,primarilyreflectingincreasingdependenceonoverseas
refineriestomeetincrementaldomesticrefinedproductdemand.Some8percentofAustralia’srefineryproductionwasexported,mainlyintheformoftransportfuelsforinternationalcarriers.
end use marketThemajorend-usemarketforrefinedproductsisthetransportsector.Refinedpetroleumproductsaretransportedtolocaldistributionpoints,fromwheretheyaredeliveredeitherdirectlytoendusersortoretailoutlets,predominatelyaspetrol,dieselandLPG.
3.2.3WorldoilmarketTable3.1providesasnapshotoftheAustralianoilmarketwithinaglobalcontext.Australia’sreservesaccountforonlyasmallshareofglobalreserves,andAustraliaisarelativelysmallproducerandconsumer.
Oil reserves and productionWorldprovenoilreserveswereestimatedtobearound1.4trillionbarrels(equivalenttoaround8.3millionPJ),attheendof2008(table3.1).This
Table 3.1 Keyoilstatistics,2008
unit australia2007–08
australia2008
World2008
Reserves PJ - 24284 8257028
Bbbl - 4.2 1408
Shareofworld % - 0.3 100
Production of crude oil, condensate and LPg PJ 1059 - 174012
mmbbl 187 194 30471
Shareofworld % - 0.6 100
Averageannualgrowthfrom2000 % -4.3 1.3
Oil refining capacity kb/d - 734 88627
Shareofworld % - 0.8 100
Consumption of crude oil, condensate and LPg PJ 1417 - -
Averageannualgrowthfrom2000 % -2.4 - -
Consumption of oil and oil products PJ 1942 - 171236a
mmbbl - 342 31586a
Shareofworld % - 1.1 100
Shareofprimaryenergyconsumption % 33.6 - 34.0
Averageannualgrowthfrom2000 % 1.3 - 1.6
Imports of crude oil and other refinery feedstocks PJ 1019 - 98392a
Averageannualgrowthfrom2000 % -0.3 - 1.8
Imports of oil and oil products PJ 1678 - 139109a
kb/d 762 771 67277a
mmbbl 278 282 24556a
Shareofworld % - 1.1 100
Averageannualgrowthfrom2000 % 4.2 - 2.6
exports of crude oil, condensate and LPg PJ 661 - 92842a
Averageannualgrowthfrom2000 % -3.0 - -
exports of oil and oil products PJ 807.7 - 135742a
Averageannualgrowthfrom2000 % -2.6 - -
Note: Bbbl–billionbarrels,mmbbl –millionbarrels,kb/d–thousandbarrelsadaya 2007data source: ABARE2009b;BP2009a;IEA2009a,b
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
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amountcouldbeincreasedinthefutureifunprovedoilreservesandresourcescanbeupgradedtoprovenreserves(oilconsideredtoberecoverablewithreasonablecertaintyundercurrenteconomicandoperatingconditions).Atcurrentratesofworldproduction,theestimatedprovenoilreservesareenoughtolastforaround42years.Sincethemid-1980stheglobalreservestoproductionratiohasbeensteadyataround40yearsormore(BP2009a)asproductionisbalancedasnewdiscoveriesaremadeandnewreservesaredevelopedeachyear.
Abouttwo-thirdsoftotalworldreservesarelocatedintheMiddleEast.Fourofthefivecountrieswiththeworld’slargestreserves–SaudiArabia,Iran,IraqandKuwait–areinthisregion(figure3.8).SaudiArabiaaloneaccountedfor19percent(1552320PJ,264Bbbl)ofworldreserves.Canadahasthesecondlargestshareofworldoilreserves,thoughoilsandstotallingsome887880PJ(151Bbbl)accountforaround80percentofthesereserves.TheAsiaPacificregionaccountedfor3percentofworldoilreserves.ThelargestoilreservesinthisregionarelocatedinChina.
Australiaisrankedtwenty-seventhintheworldintermsofprovenoilreserves,accountingforaround0.3percentofglobalreserves.
Canada
Kuwait
Libya
Australia
Saudi Arabia
Iran
Iraq
Venezuela
United Arab Emirates
Russian Federation
Kazakhstan
300250200150100
a) Oil reserves, end 2008
0 50
Billion bbls
China
Australia
Saudi Arabia
Russian Federation
United States
Iran
Mexico
Canada
Kuwait
Venezuela
United Arab Emirates
40003000200010000
b) Oil production, 2008
AERA 3.8
Million bbls
Figure 3.8 Worldoilreservesandproduction,majorcountries,2008
source: BP2009a;IEA2009a
Worldtotaloilproductionin2008wassome30.5Bbbl(equivalenttoaround174012PJ).Productionofcrudeoilrepresentsmorethan90percentoftotaloilproduction,whichincludescrudeoil,condensate,LPGandunconventionaloil.ThemajoroilproducersarelocatedintheMiddleEast,witha31percentshareofworldproduction.SaudiArabiaisthelargestsingleproducer,accountingforaround13percentofworldproduction(figure3.8).TheRussianFederationisalsoamajorproducer(12percent).OtherFormerSovietUnioncountries(particularlyAzerbaijan,KazakhstanandTurkmenistan)andAfrica(particularlyAngolaandSudan)arealsobecomingimportantoilproducingregions.Overtheperiod2000to2008,productionfromthesetworegionsgrewatanaverageannualrateofaround7percentand5percentrespectively.
Australiaisonlyasmalloilproducer,accountingfor0.6percentoftotaloilproductionin2008.
Petroleum refiningBecausevirtuallyalloil,conventionalandunconventional,needstobeprocessedbeforeenduse,refinerycapacityandthroughputaresignificant
Australia
World
OECD
Non-OECD
OPEC
604020
a) Oil share of primary energy consumption
0
%
0 20 40 60
b) Transport sector share of oil consumption
80
%
World
OECD
Non-OECD
OPEC
Australia
1971 2007AERA 3.9
Figure 3.9 Oilshareoftotalenergyconsumptionandtransportsectorusage
source: IEA2009a;2009b
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
49
CHAPTER 3: OIL
Table 3.2 Worldrefinerycapacitiesandpetroleumproduction,2008
Refinery capacities (kb/d)
share of world capacity (%)
Refinery output (kb/d)
share of world production (%)
AsiaPacific 25098 28.3 22653 28.0
NorthAmerica 21035 23.7 21567 26.7
Europe 17007 19.2 16071 19.9
FormerSovietUnion 8079 9.1 6172 7.6
MiddleEast 7592 8.6 6493 8.0
LatinAmerica 6588 7.4 5434 6.7
Africa 3228 3.6 2466 3.0
World 88 627 100.0 80 856 100.0
australia 734 0.8 684 0.8
Note: Includescapacityandproductionfromunconventionaloilsource: BP2009a;IEA2009a
indicatorsofsupplyofenduseproducts.Table3.2summarisesworldrefiningcapacityandproduction,byregion.
Thelargestshare,accountingforaround28percentofworldrefinerycapacityandoutput,isintheAsiaPacificregion.China,Japan,IndiaandtheRepublicofKoreaarethemajorproducersofrefinedproductsintheregion,althoughJapanandtheRepublicofKorearelyalmostentirelyonimportedcrudeoil.ThelargestsingleproduceristheUnitedStates,accountingformorethan20percentofworldproductionofoilproducts.Australiaaccountedforlessthan1percentofworldrefiningcapacityandproduction.
Consumption Oilisanimportantenergysource,currentlyaccountingforaround34percentofworldprimaryenergyrequirements.However,itsshareofprimaryenergyhasbeendecliningsteadilysincethe1970sfromaround45percent(figure3.9).Worldoilconsumptiongrewatamoderaterateofaround1.5percentperyearbetween1971and2008whereasprimaryenergyconsumptiongrewat2.2percentperyearoverthesameperiod.
Morethan50percentofworldoilconsumptioniscurrentlyusedinthetransportsector,comparedwithlessthan40percentintheearly1970s(figure3.9).Incontrast,theglobalsharesofoilconsumptionintheindustryandelectricitygenerationsectorshavebeensteadilydecliningoverthepasttwentyyears.In2007,theindustryandelectricitygenerationsectorsaccountedfor8percentand7percentrespectivelyoftotaloilconsumption.Around14percentofworldoilconsumptionisusedasnon-energyfeedstock.
Figure3.10showsworldoilconsumptionbyregion.NorthAmericaandtheAsiaPacificarethemajorconsumingregions,responsiblefornearly60percentofworldoilconsumptionin2008.Oilconsumptioninnon-OECDcountrieshasgrownmorerapidlythantheworldaverage,atanaveragerateof3percentperyearbetween1971and2008.Thefastestgrowingoilconsumingregionisnon-OECDAsia,growingatan
30
25
20
15
10
5
Billio
n bb
ls
0200720011995198919831977
a) Oil consumption, by region
1971
Year
Non-OECDOECD Asia Pacific
Europe
Africa OECD Europe
Former Soviet Non-OECDUnion Asia Pacific
OECD NorthLatin America
America
Middle East
Australia
Brazil
Canada
United States
China
Middle East
Latin America
Japan
Africa
India
Russian Federation
Germany
Korea
France
0 2000 4000 6000 8000
b) Oil consumption, 2008
AERA 3.10
Million bblsFigure 3.10 Worldoilconsumptionsource: IEA2009a
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
50
Table 3.3 Worldoiltradebyregion,2008
shares To
% asia North Pacific america
europe Latin america
africa australasia unknown World exports
From
MiddleEast 63 18 19 8 60 12 11 37
Africa 8 19 22 27 7 1 0 15
FormerSoviet 4 4Union
47 4 1 1 40 15
NorthAmerica 1 31 5 42 2 2 6 11
AsiaPacific 19 1 1 12 4 80 8 10
LatinAmerica 3 17 4 0 2 0 0 7
Europe 1 8 0 7 24 0 34 4
Australasia 1 0 0 0 0 0 0 1
Unknown 0 2 2 0 0 4 0 1
Worldimports 40 26 25 3 3 2 1 100
source: BP2009a
averagerateofmorethan5percentperyearoverthesameperiod.
Australiaisrankedtwenty-secondintheworldintermsofoilconsumption,accountingforaround 1percentoftheworldtotal.Almost70percentisconsumedinthetransportsector,while8percent isusedasnon-energyfeedstock.
TradeGiventhesignificantseparationofmajorproducingandmajorconsumingcountries,thereisasubstantialleveloftradeinoil.OverthepasttwentyyearsoiltradehasincreasedasoilproductionreservesintheAsiaPacificregionandNorthAmericafailedtokeeppacewithgrowthindemand.Inthemid-1980s,around40percentofworldoilconsumptionwassuppliedthroughinternationaltrade.Thisincreasedtoaround65percentin2008.
Worldoiltradein2008was67.3millionbarrelsperday(IEA2009a).ThelargestexportregionwastheMiddleEast,whichaccountedforaround37percentofworldoilexports(table3.3).AfricaandtheFormerSovietUnioncountriestogetheraccountedfor30percentofworldoilexports.Thelargestimporterofoil,theAsiaPacificregion,accountedforaround40 percentofworldoiltradein2008.NorthAmericaandEuropetogetheraccountedforabouthalfof worldtrade.
In2008,around63percentofAsiaPacificoilimportsweresourcedfromtheMiddleEastandregionaltradewithintheAsiaPacificaccountedforafurther19percent.InNorthAmerica,31percentofimportsaresourcedfromwithintheregion,specificallyoilexportsfromCanadaandMexicototheUnitedStates.SignificantquantitiesofoilareimportedintoNorthAmericafromLatinAmerica,theMiddleEastandAfrica.ThemajorityoftheEurope’simportsaresourcedfromtheFormerSovietUnion,AfricaandtheMiddleEast.
Australiaisanetimporterofcrudeoilandcondensateandofrefinedoilproducts,butisanetexporterofLPG.Sincethemid-1990s,Australia’simportsofcrudeoilfromtheMiddleEasthavebeengraduallydecliningandhavebeenincreasinglysourcedfromSouth-EastAsia,mainlyfromVietnam.
World oil market outlookInitsreferencescenario,theIEAprojectsworlddemandforprimaryoil–andthesupplytomeetthatdemand–tobothgrowby1percentperyear,from29645mmbbl(169297PJ)in2008to36820mmbbl(210271PJ)in2030(table3.4).
Oildemandinnon-OECDeconomiesisexpectedtogrowatafasterratethaninOECDeconomies.By2030,non-OECDeconomiesareexpectedtorepresentmorethanhalfofworldoildemand,upfrom41percentin2008.
ThemajorityoftheincreaseisexpectedtobesuppliedbyOPECcountries,wheresignificantprovenreservesofconventionalcrudeoilexist.OPEC’sshareofworldoilsupplycouldincreasefromaround44percentin2008to52percentin2030.
Some52percentoftheoilwasusedinthetransportsectorin2008.Thisshareisexpectedtorisefurtherto57percentin2030.Viablealternativesfortransportfuelsareexpectedtoremainrelativelylimitedthroughouttheoutlookperiod,whiletheshareofoiluseinothersectors,includingindustryandelectricitygeneration,isexpectedtodeclinefurther.
Productionofconventionaloil,includingcrudeoilandcondensate,isexpectedtoslowtowardstheendoftheoutlookperiod.Tomeetoildemand,increasedproductionisexpectedtocomefromunconventionalsources,mainlyoilsands,extra-heavyoil,gas-to-liquidsandcoal-to-liquids.Asaresult,theshareofunconventionaloilisexpectedtorisefrom2percentin2008to7percentin2030.
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CHAPTER 3: OIL
Table 3.4 WorldoiloutlookfromIEAreferencecasea
unit 2008 2030
World oil supply PJ 169 097 210 271
mmbbl 29610 36820
ShareofOPECsupply % 43.7 52.2
Shareofsupplyfromunconventionaloil
% 2.1 7.0
Annualgrowth2008–30 % 1.0
World primary oil demand
PJ 169 297 210 271
mmbbl 29645 36820
Shareofnon-OECDdemand
% 41.3 53.4
Shareoftransportsector demand
% 52.0 57.0
Annualgrowth2008–30 % 1.0
a Dataareconvertedfrommillionbarrelsperdaytomillionbarrelsbymultiplyingwith350,factorthatisconsistentwithBP(2009a).source: IEA2009c
TheIEAprojectsworlddemandforenergytogrowmoreslowlyunderits450scenarioinwhichcountriestakecoordinatedactiontorestricttheriseinglobaltemperaturesto2°CandstabilisethegreenhousegasesintheEarth’satmospheretoaround450partspermillioncarbondioxide-equivalent(IEA2009c).UnderthisscenariotheIEAprojectsoildemandtogrowatanaveragerateof0.2percentperyeartoreach31240mmbblin2030(down15percentonthereferencecase).IntheIEA’s450scenariodemandgrowthisdrivenprimarilybyChina(averaging2.7percentperyear)andtoalesserextentotherdevelopingcountrieswhiledemandreducesintheUnitedStatesandotherOECDcountries.InthisscenariotheIEApredictssavingsintransportfuelconsumptionthroughefficienciesandgreateruse ofelectricandhybridvehiclesandagreatercontributionfromsecond-generationbiofuels after2020(IEA2009c).
3.3Australia’soilresources and market
3.3.1CrudeoilresourcesAustralia’scrudeoilresourceswereestimatedat8414PJ(1431mmbbl)asat1January2009.Crudeoilrepresents27percentofliquidpetroleumresourceswiththeremainderbeingmadeupofcondensate(16170PJ,53percent)andnaturally-occurringLPG(6210PJ,20percent)(figure3.11).
Asshownintable3.5,mostofAustralia’sidentifiedcrude oil resource is in the economic demonstrated resource(EDR)categoryandonlyasmallvolumeisconsideredsub-economicgivencurrentrelativelyhighoilprices.
LPG6210 PJ Crude oil
1475 mmbbl 8414 PJ1431 mmbbl
Condensate16 170 PJ
2750 mmbbl
AERA 3.11
Figure 3.11 Australia’sliquidpetroleumresourcesbyenergycontentandvolumeasat1January2009
source: GeoscienceAustralia2009a
ResourceclassificationismorefullydiscussedinAppendixD,butnotethatEDRareresourceswiththehighestlevelsofgeologicalandeconomiccertaintyandincluderemainingprovedplusprobablecommercialreservesofpetroleum.Sub-economicDemonstratedResources(SDR)areresourcesforwhichprofitableextractionhasnotyetbeenestablished.InferredResourcesarethosewithalowerlevelofconfidencethathavebeeninferred frommorelimitedgeologicalevidenceandassumedbutnotverified.
Anadditionalbutuncertainresourceisrepresentedbythevolumesofcrudeoilthatcouldbeproducedfromexistingfieldsbytheapplicationofenhancedoilrecovery(EOR)technologiessuchasmisciblegasflooding(e.g.usingnitrogenorcarbondioxide).Thesemethodscanincreasetheoilrecoveryfactorsignificantlybeyondthe30–50percenttypicallyrecoveredusingcombinedprimaryandsecondrecoverymethods.However,EORdependsheavilyontheavailabilityandcostofmisciblegases(Wrightetal.1990)andisnotcurrentlyundertakenatanyAustralianoilfield.Reservesgrowth(GeoscienceAustralia,2001,2004,2005)inexistingfieldsisanotherpotentialsourceofadditionalcrudeoilresources.
Table 3.5 AustraliancrudeoilresourcesrepresentedasMcKelveyclassificationestimatesasat1January2009
Crude Oil Resources PJ mmbbl
EconomicDemonstratedResources 6950 1182
Sub-economicDemonstratedResources
1464 249
Total 8414 1431
source: GeoscienceAustralia2009a
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52
Most(72percent)oftheremainingidentifiedcrudeoilresourceislocatedintheCarnarvon(4839PJ)andBonaparte(1205PJ)basins.Despiteits40yearsofproduction,theGippslandBasinremainsasignificantresource(1700PJ)withsmallervolumesinanumberofonshore(Cooper-Eromanga,Bowen-SuratandAmadeus)andoffshore(Browse,PerthandBass)basins(figure3.12).
WhilecrudeoilresourcesareidentifiedacrossninebasinsandthroughmuchofthestratigraphiccolumnthesignificantvolumesarerestrictedtotheoffshoreMesozoicbasinsonthenorthwestmarginandinBassStrait.Theonshorebasinscontributeonlyabout5percent of the total crude oil resources.
Australia’sremainingidentifiedcrudeoilresourcesaredwarfedbypastproductionwhichhascomemainlyfromafewsuper-giantfieldsintheGippslandBasinandtheBarrowIslandfieldintheCarnarvonBasin,alldiscoveredinthe1960s(figure3.13).Manysuchsmalleroilfieldshavebeenfoundsince,mostlyintheCarnarvonandBonapartebasins.Theimpactoftheseinitialdiscoveriesoncrudeoilresourcesandthereservestoproductionratioisillustratedinfigures3.14and3.15.
Thereservestoproduction(R/P)ratiohasbeenrelativelysteadyataround7to10yearssincethe
1980s.However,itmustberecognisedthatbothproductionvolumesandreserveshavedeclinedmarkedlyinrecentyears.Todate,around80percentofthecrudeoilreservesdiscoveredinAustraliahavebeenproduced.
3.3.2CondensateresourcesCondensateexistsasahydrocarbongasinthesub-surfacereservoirthatcondensestoalightoilatthesurfacewhenagas(oragasandoil)accumulationisproduced.CondensatenowrepresentsmorethanhalfofAustralia’sremainingliquidhydrocarbonresources.In2008thedemonstratedcondensateresourcetotalled16170PJ(2750mmbbls)mostofwhichwasassessedasEDR(table3.6).
Table 3.6 AustraliancondensateresourcesrepresentedasMcKelveyclassificationestimates asat1January2009
Condensate Resources PJ mmbbl
EconomicDemonstratedResources 12560 2136
Sub-economicDemonstratedResources
3610 614
Total 16 170 2750
source: GeoscienceAustralia2009a
BONAPARTE BASINProduced: 2540
Remaining: 1205
BROWSE BASINProduced: 0
Remaining: 82
CANNING BASINProduced: 18Remaining: 0
CARNARVON BASINProduced: 8643 AMADEUS BASINRemaining: 4839 Produced: 100
Remaining: 24
COOPER/EROMANGA BASINSProduced: 1629Remaining: 370
BOWEN/SURAT BASINSProduced: 194Remaining: 41
PERTH BASINProduced: 141Remaining: 76
GIPPSLAND BASINProduced: 21 929Remaining: 1700
BASS BASINProduced: 0
Remaining: 76
DARWIN
BRISBANE
PERTH
ADELAIDE SYDNEY
MELBOURNE
HOBART
150°140°130°120°
10°
20°
30°
40°
AERA 3.12
0 750 km
Total production calculated(as at 2008 in PJ)Remaining resource (EDR + SDR)calculated (as at 2008 in PJ)
Oil basin
Crude oil
Oil pipelineOil pipeline(proposed)
Figure 3.12 Australia’sknowncrudeoilresources,bybasinandoilpipelinessource: GeoscienceAustralia
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
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CHAPTER 3: OIL
AsmostAustraliancrudeoilsarelight,sweetcrudesandareverysimilartothecondensateproducedfromgasfields,bothareconsideredtohaveequivalentenergyvaluepervolume(5.88PJ/mmbbl)inthisreport.
Condensateresourcesarelocatedacrosstenbasins,buttheoffshorebasinsalongtheNorthWestShelf–Bonaparte,BrowseandCarnarvon–contain92percentoftheresource(figure3.16).Similarly,thebulk of this resource is contained in a small number ofgiant‘wet’gasfields.TheundevelopedIchthysgasresourceintheBrowseBasin,forexample,isestimatedtocontain3099PJ(527mmbbls)or19percentofAustralia’scondensateresources;andis
thelargestliquidhydrocarbonresourcefoundsincetheBassStraitoilfieldsintheGippslandBasinin the1960s.
ProportionallytheCarnarvonBasingasfieldstendtobeleanerincondensatethanthoseintheBrowseandBonapartebasinsduetothedominanceof thesuper-giantdrygasaccumulationsofIo-Jansz andScarborough.
Theidentifiedcondensateresourcehasanenergycontentthatislessthan10percentthatoftheassociatedgasresource,buthasstrategicimportanceasitconstitutesmorethanhalfof
0
3000
2500
Cru
de o
il di
scov
ered
per
ann
um (m
mbb
l)
2000
1500
1000
500
0
600
500
400
300
200
Cum
ulat
ive
num
ber o
f dis
cove
ries
100
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Year
AERA 3.13
Discoveries (cumulative number)Crude oil (annual discovered volume mmbbl)
Figure 3.13 Australia’scrudeoildiscoveries,annualdiscoveredvolume(bluecolumns)andcumulativenumber ofdiscoveries,1960–2008
source: GeoscienceAustralia
Crude resources
Crude EDR
01964
16 000
14 000
12 000
10 000
PJ 8000
6000
4000
2000
1968 1972 1976 19841980 1988 1992 1996 200820042000
AERA 3.14
YearFigure 3.14 Australiancrudeoilresourcesandeconomicdemonstratedresources(EDR),1964–2008source: GeoscienceAustralia
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
54
Australia’sliquidfuelresource.Accesstothisresourcerequiresdevelopmentofthegiantwetgasfieldswhichinseveralcasesalsocontainconsiderablevolumesofcarbondioxide(CO
2).
Australia’scondensateresourceshavegrownsubstantiallysincethediscoveryofthesuper-giantandgiantgasfieldsalongtheNorthWestShelfintheearly1970s(NorthRankinintheCarnarvonBasin,
01964 1968 1972 1976 19841980 1988 1992 1996 200820042000
80
70
60
50
Year
s
40
30
20
10
AERA 3.15
YearFigure 3.15 Australiancrudeoilreservestoproductionratioinyearsofremainingproduction,1964–2008source: GeoscienceAustralia
BONAPARTE BASINProduced: 592
Remaining: 2799
BROWSE BASINProduced: 0
Remaining: 6286
CARNARVON BASINProduced: 3365Remaining: 5892
AMADEUS BASINProduced: 6Remaining: 12
BOWEN/SURAT BASINSProduced: 48Remaining: 12COOPER/EROMANGA BASINS
Produced: 585Remaining: 88
PERTH BASINProduced: 2
Remaining: 0.2
OTWAY BASINProduced: 11
Remaining: 82
GIPPSLAND BASINProduced: 1182Remaining: 753
BASS BASINProduced: 11
Remaining: 247
DARWIN
BRISBANE
PERTH
ADELAIDE SYDNEY
MELBOURNE
HOBART
150°140°130°120°
10°
20°
30°
40°
AERA 3.16
0 750 km
CondensateTotal production calculated(as at 2008 in PJ)Remaining resource (EDR + SDR)calculated (as at 2008 in PJ)
Gas basin
Gas pipelineGas pipeline(proposed)
Oil pipeline
Figure 3.16 Australia’sknowncondensateresourcesbybasin,andgasandoilpipelinessource: GeoscienceAustralia
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
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CHAPTER 3: OIL
ScottReef(Torosa)intheBrowseBasin,SunriseintheBonaparteBasin).ThebigstepinthecondensateEDRin2008(figure3.17)islargelyduetothepromotionofIchthysintothiscategory.
TheEDRtoproductionratioofcondensatesince1980hasmostlybeenbetween20and50years,apartfromapeakintheearly1980s(figure3.18). In2008atcurrentlevelsofproductionAustraliahadabout30yearsofcondensatereservesremaining.
3.3.3LPGresourcesTheidentifiedresourceofnaturally-occurringliquidpetroleumgas(LPG)in2008wasestimatedat6210PJ(1475mmbbls),mostofwhichwas
assessedasEDR(table3.7).LPGrepresents20percentofAustralia’sliquidhydrocarbonresourceinenergycontentterms.LPGislessenergydensethancrudeoilandcondensate.Hence,thoughAustralia’snaturally-occurringLPGnowvolumetricallyexceedsthecrudeoilresource,thecrudeoilhasahigherenergycontent(8414PJin1431mmbblsofcrudeoil,comparedwith6210PJin1475mmbblsofLPG).
LPGisamixtureoflighthydrocarbonsthatisnormallyagasinsubsurfacereservoirsandatthesurface.However,LPGisstoredandtransportedasaliquidunderpressureandformspartofAustralia’sliquidfuelsupply.InadditiontotheLPGoccurringnaturallyingasandoilfields,LPGisalsoproducedduringtherefiningofcrudeoil.
1964 1968 1972 1976 19841980 1988 1992 1996 20082004
AERA 3.17
2000
Condensate resources
Condensate EDR
0
16 000
14 000
12 000
10 000
PJ
8000
6000
4000
2000
18 000
YearFigure 3.17 Australia’sidentifiedcondensateresourcessource: GeoscienceAustralia
1972 1976 19841980 1988 1992 1996 200820040
2000
100
AERA 3.18
Year
s
50
YearFigure 3.18 CondensateEDRtoproductionratioinyearsofremainingproductionsource: GeoscienceAustralia
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
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Table 3.7 Australiannaturally-occurringLPGresourcesrepresentedasMcKelveyclassificationestimatesasat1January2009
LPg Resources PJ mmbbl
EconomicDemonstratedResources 4613 1096
Sub-economicDemonstratedResources
1597 379
Total 6210 1475
Naturally-occurringLPGresourcesareidentifiedineightbasins(figure3.19).ThedistributionofLPGissimilartothatofcondensatewiththeCarnarvon,BrowseandBonapartebasinsagaindominating(85percentoftheremainingresource).TheresourceintheGippslandBasinremainssignificant(10percentofthetotal)eventhoughthisrepresentsonlyaboutaquarter of the initial resource.
In2008atcurrentlevelsofproduction,Australiahad20yearsofnaturally-occurringLPGremaining.
source: GeoscienceAustralia2009a
3.3.4 Shale oil resourcesAustraliahassignificantpotentialunconventionaloilresourcescontainedinoilshaledepositsinseveralbasins.Oilshaleisessentiallyapetroleumsourcerockwhichhasnotundergonethecompletethermalmaturationrequiredtoconvertorganicmatterto
oil.Inaddition,thefurthergeologicalprocessesofexplusion,migrationandaccumulationwhichproduceconventionalcrudeoilresourcestrappedinsubsurfacereservoirshavenotoccurred.Theunconventionalshaleoilresourcecanbetransformedintoliquidhydrocarbonsbymining,crushing,heating,processingandrefining,orbyin situheating,oilextractionandrefining(box3.2).
Australia’stotalidentifiedenergyresourcecontainedinoilshalewasestimatedat131600PJ(22390mmbbl)in2009(table3.8).However,allofthiswasclassifiedaseitherrecoverablecontingent(84600PJ,14387mmbbl)orinferred(47000PJ,8003mmbbl)resources.Thisisalargeunconventional oil resource.
Table 3.8 AustralianshaleoilresourcesrepresentedasMcKelveyclassificationestimatesasat1January2009
shale Oil Resources PJ mmbbl
Sub-economicDemonstratedResources
84600 14387
InferredResources* 47000 8003
Total 131 600 22 390
* Thetotalinferredresourcedoesnotincludea‘totalpotential’ lowgradeshaleoilresourceoftheToolebucFormation,Queenslandestimatedtobeabout9061100PJ(equivalentto1541000mmbbls,245000GL)byBMRandCSIROin1983.source: GeoscienceAustralia2009b
BONAPARTE BASINProduced: 232
Remaining: 1193 DARWIN
BROWSE BASINProduced: 0
Remaining: 1391
CARNARVON BASINProduced: 1349Remaining: 2603
AMADEUS BASINProduced: 6
Remaining: 0.8
COOPER/EROMANGA BASINS BOWEN/SURAT BASINSProduced: 47Produced: 642Remaining: 10Remaining: 125
BRISBANE
PERTH
ADELAIDE SYDNEY
MELBOURNEGIPPSLAND BASINProduced: 2427
BASS BASIN Remaining: 646Produced: 5
Remaining: 241
HOBART
150°140°130°120°
10°
20°
30°
40°
AERA 3.19
0 750 km
LPG produced in PJ
LPG remaining resourcein PJ
Gas basin
LPG resources
Gas pipelineGas pipeline (proposed)Oil pipelineOil pipeline (proposed)
Figure 3.19 Australia’sLPGresourcesbybasinsource: GeoscienceAustralia
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CHAPTER 3: OIL
BOx 3.2 SHALEOIL
ResourcesOilshaleisasignificantbutlargelyunutilisedsourceofhydrocarbons(shaleoil).Totalworldin-situshaleoilresourceswereestimatedin2005(thelastyearforwhichworldoilshalemarketdataareavailable)tobearound16.62millionPJ(2826billionbbl)in27countries(WEC2007).MostoftheresourceislocatedintheGreenRiveroilshaledepositintheUnitedStates.TheUSGSestimatestheGreenRiveroilshaletocontain1525billionbarrelsofoilin-placeinsomeseventeenoilshalezones(Johnsonetal.2009).OthercountrieswithsignificantshaleoilresourcesaretheRussianFederation,theDemocraticRepublicofCongo,Brazil,Italy,Morocco,Jordan,AustraliaandEstonia.Thetotalrecoverableshaleoilresourcewasestimatedatabout6.27millionPJ(1067Bbbl).Australiaisestimated tohaveabout1.3percentofworldrecoverable shale oil resources.
ProductionSmallscaleproductionofhydrocabons(kerosene,lampoil,fueloil,andotherproducts)fromoilshalebeganinseveralcountriesinthelate1800sincludingAustraliawithproductionfromthetorbanitedepositsatJoadjaCreeknearLithgowandatGlenDavis(bothinNewSouthWales)from1865.ThisproductioncontinuedthroughWorldWarIIuntil1952.Therewasalsoproductionintheperiod1910–34fromtheMerseyRivertasmanitedepositsinTasmania.ProductioninmostwesterncountriesceasedafterWorldWarIIbecauseoftheavailabilityofcheapersuppliesofconventionalcrudeoil.However,productioncontinuedinEstonia,thethenUSSR,ChinaandBrazil,peakingat46Mtofoilshaleperyearin1980(WEC2007).Totalrecordedshaleoilproductionin2005wasabout5.014mmbbl,comprising2.529mmbblfromEstonia,1.319mmbblfromChinaand1.165mmbblfromBrazil.In2008productionofshaleoilwaslimitedtoEstonia,China,andBrazilwithseveralcountries,includingIsrael,Morocco,ThailandandtheUnitedStates,investigatingthepotentialproductionofshaleoiloruseofoilshaleinelectricitygeneration(WEC2009).
Geology and extraction OilshaledepositsrangeinagefromCambriantoCenozoicandwereformedinawiderangeofdepositionalenvironmentsrangingfromfreshwaterandsalinepondsandlakescommonlyassociatedwithcoastalswamps(includingpeatswamps)tobroadmarinebasins.Oilshaleshaveawiderangeoforganicandmineralcompositionsandareclassifiedaccordingtotheirdepositionalenvironment,eitherterrestrial,lacustrineormarine.Terrestrialoilshalesarecomposedmostlyofresinsandotherlipid-rich(naturally-occurringmoleculesthatincludefats,waxesandsterols)organicmatterandplantmaterial.Lacustrineoilshales(knownaslamosite
andtorbanite)containlipid-richmaterialderivedfromalgae,whereasmarineoilshales(tasmaniteandmarinite)arecomposedoflipid-richderivedfrommarinealgaeandothermarinemicro-organisms.
Theorganicmatterinoilshale(whichcontainssmallamountsofsulphurandnitrogeninadditiontocarbon,hydrogenandoxygen)isinsolubleincommonorganicsolventsandismixedwithvariableamountsofmineralmatter,mostlysilicateandcarbonateminerals.Therearecurrentlytwomainmethodsforrecoveringoilfromoilshale.Thefirstinvolvesmining(commonlybyopen-cutmeans)andcrushingtheshale,andthenretorting(heating)it,typicallyintheabsenceofoxygen,toabout500°C.Alargenumberofoilshaleretortingtechnologieshavebeenproposedbutonlyalimitednumberareincommercialuse.Asecond,morerecentapproachinvolvesin-situextractionofshaleoilbygraduallyheatingtherocksoveraperiodofyearstoconvertthekerogen.Bothapproachesrelyonthechemicalprocessofpyrolysiswhichconvertsthekerogenintheoilshaletoshaleoil(syntheticcrudeoil),gasandasolidresidue.Conversionbeginsatlowertemperaturesbutproceedsfasterandmorecompletelyathighertemperatures.
Renewedinterestinshaleoilinrecentyearshaspromptedongoingresearchintoextractiontechnologies.Alargenumberoftechnologieshavebeenproposedandmanytrialledtoproduceshaleoil.AreportbytheUnitedStatesDepartmentofEnergysummarisesthosecurrentlybeinginvestigatedtoproduceshaleoil(USDOE2007).In-situmethodsincludeinjectinghotfluids(steamorhotgasses)intotheshaleformationviadrillholesorheatingusingelementsorpipesdrilledintotheshalewiththeheatconductedbeyondthewalls.Otherapproachesrelyonheatingvolumesofshaleusingradiowavesorelectriccurrents.In-situextractionhasbeenreportedtorequirelessprocessingoftheresultantfuelsbeforerefiningbuttheprocessusessubstantialamountsofenergy.Bothmethodsusesubstantialamountsofwaterandtypicallyproducemoregreenhousegasesthandoesextractionofconventionalcrudeoil.Currentlyover30companiesintheUnitedStatesareinvestinginthedevelopmentofcommercial-scalesurfaceandin-situprocessingtechnologieswithseveralcompaniestestingin-situtechnologiestoextractshaleoilatmorethan300mdepth(USDOE2007).
AustraliaThereisnooilbeingextractedfromoilshaleinAustralia.From2000to2004,theStage1demonstration-scaleprocessingplantattheStuartdepositnearGladstoneincentralQueenslandproducedmorethan1.5mmbblofoilusingahorizontalrotatingkilnprocess(AlbertaTaciuk
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
58
Process).Nooilhasbeenproducedsince2004.Thedemonstrationplantachievedstableproductioncapacityof6000tofshaleperdayandoilyieldtotalling4500bblsperstreamdaywhilemaintainingproductqualityandadheringtoEnvironmentProtectionAuthorityemissionslimits.ThedemonstrationplantproducedUltraLowSulphurNaphtha(ULSN),accountingforabout55to60percentoftheoutputandLightFuelOil,about40to45percentofoutput.TheULSN,whichcanbeusedtomakepetrol,dieselandjetfuel,hadaverylowsulphurcontentoflessthan1partpermillion.
SinceacquiringtheStuartoilshaleproject,QueenslandEnergyResourceshasundertakenadetailedtestingprogramofprocessingofthe
QueenslandoilshaleatapilotplantinColorado,UnitedStatesandsuccessfullydemonstratedtheuseoftheParahoIIverticalkilntechnologytoextractshaleoil(WEC2009).Thecompanyiscurrentlyexaminingaproposalfortheconstructionofasmall-scaletechnologydemonstrationplantattheStuartsiteusingtheParahotechnology(www.qer.com).
In2008,theQueenslandGovernmentprohibitedshaleoilminingattheMcFarlane(formerlyCondor)depositnearProserpinefor20years.TheQueenslandGovernmentiscurrentlyundertakingatwo-yearreviewonwhethertheoilshaleindustryshouldbedevelopedinthestate.OtherAustralianoilshaleindustrydevelopmentsaresummarisedelsewhere(GeoscienceAustralia2009b).
ThemajorityofAustralianshaleoilresourcesofcommercialinterestarelocatedinQueensland,inthevicinityofGladstoneandMackay(figure3.20).ThickCenozoiclacustrineoilshaledeposits(lamosite)ofcommercialinterestarepredominantlyinaseriesofnarrowanddeepextensionalbasinsnearGladstoneandMackay.From1999to2003,oilwasproducedatademonstration-scaleprocessingplant(referredtoastheStuartOilShaleProject)attheStuartdeposit
intheNarrowsBasin,nearGladstone.Theoilshalesaregradedfromabout60litrespertonneatzeropercentmoisture(LTOM)toover200LTOM,comfortablyabovethe50LTOMcut-offgenerallyregardedastheminimumrequiredforprofitableoperation.
OilshaledepositsofvaryingqualityalsooccurinNewSouthWales,Tasmania,andWesternAustraliainsedimentarysequencesofPermian,Cretaceous
DARWIN
McFarlane
Julia Creek RundleBungobine
Duaringa Stuart
Alpha
Yaamba Nagoorin
Nagoorin South LowmeadBRISBANE
PERTH
ADELAIDE SYDNEY
MELBOURNE
HOBART
150°140°130°120°
10°
20°
30°
40°
AERA 3.20
0 750 km
Shale oil
Demonstrated Resources Undifferentiated (in PJ)
Inferred resources (in PJ)
Oil shale basin
Oil shale occurence
Figure 3.20 DistributionofAustralianindicatedshaleoilresourcessource: GeoscienceAustralia
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
59
CHAPTER 3: OIL
andCenozoicage.Therewassomemodestscaleproductionfromtwoofthesedepositsforperiodsuptothe1950s.
Apotentialshaleoilresourceofapproximately1541000millionbarrels(9061086PJ)wasestimatedfortheToolebucFormationinnorth-westernQueenslandbythethenBureauofMineralResources(nowGeoscienceAustralia)andtheCSIRO(OzimicandSaxby1983).TheToolebucFormationisverywidespreadbut,atanaverage37LTOM,theresourceisconsideredverylowgrade.Itisnotcountedamongtheresourcesintable3.8.
3.3.5TotaloilresourcesAustralia’soilresourcesarepredominantlymadeupofconventionalliquidhydrocarbons.Crudeoilreservesareindecline,butthereisasubstantialremainingresourceofcondensateandnaturally-occurringLPGassociatedwithundevelopedoffshoregasfields.Oilshaledepositscontainalarge,unconventionalresourcewhichdoesnotcurrentlyaddtoAustralia’sliquidfuelsupplies.Apartfrom
enhancedoilrecovery(EOR),optionsforfutureliquidfuelsupplyalsoincludegas-to-liquids(GTL),coal-to-liquids(CTL)andbiofuelswhicharediscussedinotherchaptersinthisassessment.
AERA 3.21
Increased breakevenprice required
Increased technologyrequirements
Smaller volumes,easy to develop 8414 PJ
(~1400 mmbbls)Crude oil
Largervolumes, 22 380 PJdifficult todevelop (~2700 mmbbls condensate,
1500 mmbbls LPG)
131 600 PJ (~22 000 mmbbls)Contingent and inferred resource Shale Oil
6468 PJ1100 mmbbls
(estimate of scope for EOR in discovered fields)
Figure 3.21 Australianoilresourcepyramidsource: GeoscienceAustralia(adaptedfromMcCabe1998andBranan2008)
BONAPARTE BASINTotal produced: 3364
Crude oil remaining: 1205Condensate remaining: 2799
LPG remaining: 1193
BROWSE BASINTotal produced: 0
Crude oil remaining: 82Condensate remaining: 6286
LPG remaining: 1391
CARNARVON BASIN AMADEUS BASINTotal produced: 13 357 Total produced: 112Crude oil remaining: 4839 Crude oil remaining: 24Condensate remaining: 5892 Condensate remaining: 12LPG remaining: 2603 LPG remaining: 0.8
COOPER/EROMANGA BASINSTotal produced: 2856
Crude oil remaining: 370Condensate remaining: 88
LPG remaining: 125 BOWEN/SURAT BASINSTotal produced: 289Crude oil remaining: 41Condensate remaining: 12PERTH BASIN LPG remaining: 10
Total produced: 143Crude oil remaining: 76
Condensate remaining: 0.2
BASS BASINTotal produced: 16
Crude oil remaining: 76 GIPPSLAND BASINCondensate remaining: 247 Total produced: 25 536
LPG remaining: 241 Crude oil remaining: 1699Condensate remaining: 753LPG remaining: 646
DARWIN
CANNING BASINTotal produced: 18Crude oil remaining: 0
BRISBANE
PERTH
ADELAIDE SYDNEY
MELBOURNEOTWAY BASINTotal produced: 11
Condensate remaining: 82
HOBART
150°140°130°120°
10°
20°
30°
40°
AERA 3.22
0 750 km
Liquid hydrocarbon (Crude Oil, Condensate& LPG) resources in PJ
Gas pipelineGas pipeline(proposed)Oil pipeline
Past production Petroleum basin
Condensate resources
Crude oil resources
LPG resources
Figure 3.22 Australiancrudeoil,condensateandnaturally-occurringLPGresources,infrastructure,pastproductionandremainingresources
source: GeoscienceAustralia
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
60
Table 3.9 Crudeoil,condensateandLPGMcKelveyclassificationestimatesbybasinasat1January2009
mcKelvey Basin
Class.
Total energy
PJ
Crude Oil
PJ mmbbl
Condensate
PJ mmbbl PJ
LPg
mmbbl
EDR Carnarvon 12464 4405 749 5457 928 2602 618
EDR Browse 3957 0 0 3957 673 0 0
EDR Bonaparte 4131 676 115 2264 385 1191 283
EDR Gippsland 2626 1353 230 629 107 644 153
EDR Other 945 516 88 253 43 176 42
Total eDR 24 123 6950 1182 12 560 2136 4613 1096
SDR Carnarvon 868 434 74 434 74 0 0
SDR Browse 3797 82 14 2327 396 1389 330
SDR Bonaparte 1063 529 90 534 91 0 0
SDR Gippsland 470 348 59 122 21 0 0
SDR Other 473 71 12 193 32 209 49
Total sDR 6671 1464 249 3610 614 1597 379
Total eDR + sDR 30 794 8414 1431 16 170 2750 6210 1475
source: GeoscienceAustralia2009a
Theresourcepyramid(figure3.21)highlightshowasmallervolumeofmorereadilyaccessible,highqualityresourcesareunderpinnedbylargerbutlessaccessibleresources.However,theseunconventionaloilresourcescomewithdevelopmentcostsandrisks.Technology,priceandtheirownenvironmentalimpactscaninfluenceaccesstothem.
ConventionalhydrocarbonliquidresourcesarelocatedacrosstenbasinsbutmostremainingresourcesareintheCarnarvon,BrowseandBonapartebasins(table3.9).TheinitialliquidresourcesoftheCarnarvonBasinwerenearlyequivalenttothoseofthecrudeoil-richGippslandBasin(figures3.22and3.12).
3.3.6Oilmarket
Oil productionMostofAustralia’scurrentcrudeoilproductionisfromthematureoilprovinces–theCarnarvonandGippslandbasins–whichin2007–08accountedfor62percentand18percentrespectivelyofcrudeoilproduction.TheGippslandBasinalsoaccountsforalmosthalfofAustralia’snaturally-occurringLPGproduction,althoughthishasbeendecliningsteadilysinceproductionpeakedinthemid-1980s(figure3.23).
Australia’sannualcrudeoilproductionprogressivelydeclinedbetween1985–86and1998–99from1102PJto738PJ(187.4to125.2mmbbl,29794to19905ML).However,followingthestart-upofanumberofnewoilfields,includingtheLaminaria/Corallina,Elang/KakatuaandCossack/Wanaeafields(alloffshorenorth-westernAustralia),oilproductionincreasedrapidly,peakingat1209PJ(205.7mmbbl,32704ML)in2000–01.Sincethen,crudeoilproductionhasdeclinedatarateof7percentperyear,to697PJ(117mmbbl,18602ML)in2007–08.
Domesticproductionofcondensateincreasedfromaround36PJ(6.1mmbbl,1096ML)inthefirstyearofproductionin1982–83to257PJ(43.7mmbbl,6949ML)in2007–08,withproductionreaching316PJ(53.7mmbbl,8544ML)in2002–03.Naturally-occurringLPGproductioninAustraliaalsoincreasedfromaround80PJ(19mmbbl,3021ML)in1979–80to125PJ(29.7mmbbl,4721ML)in2005–06,mainlyfromtheCarnarvonBasininWesternAustralia.In2007–08,LPGproductiondeclinedto105PJ(25.6mmbbl,4072ML).
Overthepastfouryears,anumberofoilprojectshavebeendeveloped,withsixfieldsintheCarnarvonBasinandoneeachinthePerthandBonapartebasins.Theeightfieldshaveaproductioncapacityinexcessof350thousandsofbarrelsperday(kbpd,table3.10).
TheCliffHeaddevelopmentrepresentsthefirst–andcurrentlytheonly–offshoreproducingoilfieldinthePerthBasin.TheCliffHeadfieldismodestinsize(around10mmbbls),theaccumulation’ssizehavingbeenreviseddownwardsfollowingfurtherappraisaldrilling.Thedecisiontodevelopthefieldoccurredduringaperiodofrisingoilpricesthathelpedoffsettheimpactofthisappraisaldrilling.TheEnfield,StybarrowandVincentfields,alllocatedinthedeeperwatersoftheoffshoreExmouthSub-basin,CarnarvonBasin(figure3.24),signaltheadditionofasignificantnewoilproducingareaforAustralia:recoverablecrudeoilvolumesacrossadozenfieldstotalaroundhalf a billion barrels.
Incontrasttothenearly6billionbarrelsofconventionaloilproducedinAustraliasincethe1960s,onlyafewmillionbarrelshavebeenproducedfromoilshale.Therewasintermittentandsmallscaleproductionfrom1865to1952whentherewasnoindigenousconventionalcrudeoilproduction.Another
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
61
CHAPTER 3: OIL
0
35 000
30 000
25 000
20 000
ML
15 000
10 000
5000
1983-84 1987-88 1991-92 1995-96 1999-00 2003-04 2007-08
a) Crude oil
Year
b) Condensate
01983-84 1987-88 1991-92 1995-96 1999-00 2003-04 2007-08
Year
9000
8000
7000
6000
5000
ML
4000
3000
2000
1000
45 000
40 000
35 000
30 000
25 000
20 000
15 000
10 000
ML
5000
0
c) LPG
01983-84 1987-88 1991-92 1995-96 1999-00 2003-04 2007-08
Year
d) Total primary oil5000
4500
4000
3500
3000
ML 2500
2000
1500
1000
500
1987-88 1991-92 1995-96 1999-00 2003-04 2007-08
Year1983-84
AERA 3.23
Northern South WesternQueensland Victoria
Territory Australia Australia
Figure 3.23 Australianoilproductionsource: ABARE2008
Table 3.10 Crudeoilandcondensateprojectsrecentlycompleted,asatOctober2009
Project Company Basin start up Capacity Capital expenditure
($m)
CliffHeadoilfield ROCOil Perth 2006 20kbpd 285
Enfieldoilfield WoodsideEnergy/Mitsui Carnarvon 2006 100kbpd 1480
Puffinoilfield AEDOil/Sinopec Bonaparte 2007 30kbpd 150
WoollybuttoilfieldSouthLobe TapOil Carnarvon 2008 6–8kbpd 143
Perseus-over-Goodwynproject WoodsideEnergy Carnarvon 2008 na 800
Stybarrowoilfield BHPBilliton/WoodsideEnergy
Carnarvon 2008 80kbpd 874
Vincentoilfield(stage1) WoodsideEnergy/Mitsui Carnarvon 2008 100kbpd 1000
Angelgasandcondensatefield
Woodside/BHPBilliton/BP/ChevronTexaco/Shell/JapanAustraliaLNG
Carnarvon 2008 310PJpagas,50kbpdcondensate
1400
source: ABARE;GeoscienceAustralia
unconventionaloilresource,tarsandsintheonshore
GippslandBasin,wasexploitedduringWorldWarII
andinthepost-warperiod(Bradshawetal.1999).
ThehighqualityoilshaledepositsintheNarrows
Basin,nearGladstone,havebeenthesubjectofpre-
developmentstudiesforseveraldecades(McFarland2001).TheStuartOilShaleProjectachievedproductionfromademonstration-scaleprocessingplantintheperiod1999to2004,producingmorethan1.5millionbarrelsofoilusingahorizontalrotarykilnretort(box3.2).
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
62
50 000
40 000
30 000
20 000
10 000
0
ML
1969-70 1975-76 1981-82 1987-88 1993-94 1999-00 2005-06Year
Griffin
VincentStybarrow
Pyrenees
Enfield
WESTERNAUSTRALIA
EXMOUTH
0001
005
002
50
0 25 km
AERA 3.24
Field outline information is provided by GP Info, an Encom Petroleum Information Pty Ltd product.
NTQLD
WASA
NSW
VIC
TAS
114°30'
21°15'
114°00'
21°45'
Gas fieldBathymetry contour (metres)
Oil field
Gas pipeline100
Figure 3.24 Oilandgasfieldsandbathymetry,ExmouthSub-basin,CarnarvonBasinsource: GeoscienceAustralia
Petroleum refiningThepetroleumrefiningindustryinAustraliaproducesawiderangeofoilproducts,suchasgasoline,diesel,aviationfuelandLPG,fromcrudeoilandcondensatefeedstock.In2007–08,Australianrefineriesconsumed1333PJ(226.7mmbbl,36043ML)ofcrudeoilandcondensate,ofwhichimportsaccountedforaround68percent(figure3.25).MostoftheimportsareusedinthedomesticpetroleumrefiningindustryinEasternAustralia,tooffsetthedecliningproductionfromtheGippslandBasin.
Imports of refinery feedstocks
Refinery feedstock from domestic production
50 000
40 000
30 000
20 000
10 000
ML
01969-70 1975-76 1981-82 1987-88 1993-94 1999-00 2005-06
AERA 3.25
Year
AERA 3.25
Figure 3.25 SourcesofAustralianrefineryinputssource: ABARE2009b
TherearesevenmajorpetroleumrefineriescurrentlyoperatinginAustralia,managedbyfourcompanies—BP,Caltex,MobilandShell(table3.11).Thesesevenrefinerieshaveacombinedcapacityofaround42.7billionlitresayear.ThelargestoftheseareBP’sKwinanarefineryinWesternAustraliaandCaltex’sKurnellrefineryinNewSouthWales.ArefineryatPortStanvacinSouthAustraliaceasedproductionin
Imports of refinery feedstocks
Refinery feedstock from domestic production
Table 3.11 Australianrefinerycapacity
Operator year commissioned
Capacity mLpa
New south Wales
Clyde Shell 1928 4930
Kurnell Caltex 1956 7320
Queensland
BulwerIsland BP 1965 5110
Lytton Caltex 1965 6270
south australia
PortStanvaca Mobil 1963 (4520)
Victoria
Altona Mobil 1949 4530
Geelong Shell 1954 6380
Western australia
Kwinana BP 1955 7960
Totalb 42 500
Notes: aThePortStanvacrefineryceasedproductioninJuly2003; bTotalofcurrentlyoperatingrefineries;MLpamillionlitresperannumsource: AustralianInstituteofPetroleum2007
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
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CHAPTER 3: OIL
2003andiscurrentlyunderacareandmaintenanceregime.Itsclosureisoneofthereasonsbehindadeclineintotalrefineryoutput,whichhasledtoincreasedimportsofrefinedpetroleumproducts.
Consumption Oilissecondonlytocoal,intermsofsharesinAustralianprimaryenergyconsumption.However,itssharehasbeendecliningsteadily,fromahighofalmost50percentofprimaryenergyuseinthelate1970stoaround34percentin2007–08.Priorto1979,Australia’sprimaryoilconsumptionhadgrownstronglyatarateofaround5percentperyear.However,sincethen,consumptionhasbeengrowingatamoderaterateofaround1percentperyear toreach1942PJ(347mmbbls,55168ML)in2007–08(ABARE2009b).
ThetransportsectoristhelargestconsumerofoilproductsinAustralia,currentlyaccountingforaround70percentoftotaluse,comparedwith50percentinthe1970s(figure3.26).Theincreasedsharehasoffsetthedeclineintheindustrialsector’sshare,downfromabout40percentinthe1970stoabout20percentin2007–08.
0 0
20
40
60
80
2500 100
2000
1500
PJ %
1000
500
AERA 3.26
1973- 1978- 1983- 1988- 1993- 1998- 2003- 2007-74 79 84 89 94 99 04 08
Year
Total oil Transport sector shareconsumption (PJ) of consumption (%)
Share of primaryenergy consumption (%)
Figure 3.26 Australianoilconsumption,shareoftotalenergyconsumptionandtransportsectorconsumption
source: ABARE2009b
TradeAustraliaisanetimporterofcrudeoilandoilproductsbutanetexporterofLPG.Morethan60percentofdomesticcrudeoilandcondensateproduction(18.6billionlitres,688PJ,117mmbbl)wasexportedin2007–08,predominantlyfromtheCarnarvon BasininWesternAustraliatoAsianrefineries. ThisreflectstheirrelativeproximitytothemajorproducingfieldscomparedwiththerefineriesonAustralia’seastcoast.Australiaalsoimported26billionlitres(962PJ,163.5mmbbl)ofcombinedcrudeoilandcondensatetomeetitsdomesticrefineries’
-2
2
4
6
8
10
12
14
0
7
6
5
4
3
2
1
0
a) Primary oil
-11989-90 2007-081992-93 1995-96 1998-99 2001-02
BL
2007
-08
$billi
on
2004-05Year
16
14
12
10
8
6
4
2
0
-2
BL
-4 -4
-2
0
2
4
6
8
10
12
14
b) Refined oil products16
1992-93 1995-96 1998-99 2001-02
AERA 3.25
1989-90 2004-05 2007-08Year
2007
-08
$billi
on
Volume (BL) Value ($b)
Figure 3.27 Australia’snetoilimports–volumeandvalue
source: ABARE2008and2009c
requirements.In2007–08,Australia’snetimportsofprimaryoil(crudeoil,condensateandLPG)werearound7.7billionlitres(383PJ,48.4mmbbl), valuedat$5.5billion.
Formostofthe1990sAustraliawasanetexporterofrefinedoilproducts.Stronggrowthinconsumptionresultedinnetimportsfromaround1999–2000(figure3.27).However,importsincreasedsignificantlyfollowingtheclosureofthePortStanvacrefineryin2003andamountedtoaround15billionlitres(555PJ,94mmbbl)in2007–08.Theseimportswerevaluedataround$12billion.
Oil supply–demand balanceFigure3.28providesasupply–demandbalanceforprimaryoil–productionfromoilfieldsandconsumptionindomesticrefineries(refineryfeedstock).Exceptforabriefperiodinthemid-
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
64
0
1800
1600
1400
1200
1000
PJ
800
600
400
200
1969-70 2007-081975-76 1981-82 1987-88 1993-94 1999-00
AERA 3.28
Year
Naturally occurring Crude oilLPG production production
Condensate Consumptionproduction (refinery input)
(refinery output)
0
2250
2000
1750
1500
1250
PJ
1000
750
500
250
1965-66 2007-08
ProductionConsumption
AERA 3.29
1971-72 1977-78 1983-84 1989-90 1995-96 2001-02Year
Figure 3.28 Australianprimaryoilsupply–demandbalance
source: ABARE2009b
Figure 3.29 Australianrefinedoilproductssupply–demand balance
source: ABARE2009b
1980s,Australiahasreliedonnetimportstomeetdomesticrefineries’needs.In2007–08,refineriesinAustraliaused1462PJoffeedstockwitharound25percentofthisinputmetfromimports.
Figure3.29providesasupply–demandbalanceforrefinedoilproducts,thatis,oilproductsproducedfromdomesticrefineriestomeetdomesticdemandforliquidfuels.Incontrasttoprimaryoil,Australiawasgenerallyselfsufficientintermsofrefinedoilproductsforsubstantialperiodsduringthe1980sand1990s,becauseAustraliahadenoughrefinerycapacitytomeetdomesticdemandforoilproducts.SincetheclosureofthePortStanvacrefineryin2002–03,however,netimportsofoilproductshaverisensteadily,andin2007–08netimportsaccountedforaround30percentoftotalconsumption.
3.4Outlookto2030forAustralia’sresourcesandmarket
3.4.1KeyfactorsinfluencingtheoutlookForthepurposesofthisassessment,akeyassumptionisthatdemandforoilwillcontinuetogrowandwillbemetfromavarietyofsourcesincludingimports,domesticconventionalcrudeoilandcondensateproduction,andunconventionalsources.GiventherapidchangesinthepastdecadewhereAustraliamovedfromnetexportertoimporterofoil,furthersignificantchangeisexpectedintheoutlookperiodto2030.Therewillbecontinuedproductionfromknownfields,andthedominanceofthebasinsoffshorenorth-westernAustraliawillbeentrenchedasproductioncomesonstreamfromcondensate-richgasfieldssuchasIchthysintheBrowseBasin,andasthenewlydevelopedExmouthSub-basinoftheCarnarvonBasinreachespeakproduction.Themajoruncertaintiesinindigenousoilsupplyarewhetherexplorationeffortsinfrontierbasinswillbesuccessfulinfindinganewoilprovince;whetherdiscoveredresourcesarecommercialised;andtheroleofunconventionaloilsources(gas-to-liquids,coal-to-liquids,enhancedoilrecoveryandshaleoil)aswellasalternativetransportfuelssuchas biofuels.
Thisoutlookisaffectedbyvariousfactors,includingthegeologicalcharacteristicsoftheresource(suchaslocation,depth,quality),economiccharacteristicsoftheresource(suchascost),developmentsintechnology,infrastructureissues,fiscalandregulatoryregime,andenvironmentalconsiderations.Themarketpriceofoilisperhapsthemostimportantfactorofallindeterminingtheincentivesforoilexplorationanddevelopment,especiallyforunconventionaloilresources.
Oil pricesAustraliaisaproducer,exporterandimporterofcrudeoilandrefinedproducts.Sincederegulationoftheoilsectorinthelate1980s,Australia’soilmarkethasbeenopen,competitiveandfullyexposedtoglobalmarketconditions.
Globaloilpricesaresubjecttobothshort-termpricemovementsandlonger-termpricetrends.Short-termoilpricemovementsrelatetoinfluencesondemandandsupplyofoilinthemarketplace.Theseincludecyclical/seasonaloildemand,theimpactofsupplydisruptionssuchashurricanes,accidentsorsabotage,riskpremiumsassociatedwithgeopoliticaltensions,andextraneousshockstotheeconomysuchastheglobalfinancialcrisis.Indomesticmarketterms,significantexchangeratevariationsandmarketspeculationcanalsoaffectshort-termoilpricemovements.
Inthelongerterm,animportantdriverofoilpriceswillbetheunderlyingmarginalcostofoilproduction,
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
65
CHAPTER 3: OIL
140
120
100
80
60
40
20
0
Prod
uctio
n co
st ($
200
0)
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10 000Resources (billions of barrels)
Deepwater andultra deepwater
AERA 3.30
Coal to liquidsOil shales
Gas toliquids
Arc
tic
CO
-E
OR
2 EO
R
Heavy oiland bitumen
lO
ther
Produced MENA
conv
entio
nal
oi
whichwillhaveimplicationsforoilsupply,andacombinationoflongtermeconomicgrowthanddemandsideefficiencyimprovements,whichwill haveimplicationsforoildemand.
TheIEA’srepresentationoftheavailabilityofoilresourcesandassociatedproductioncostsisshowninfigure3.30.Itshowsthatjustover1trillionbarrelsofoilhavealreadybeenproducedatacostofbelowUS$30perbarrel.Therearepotentiallyaround2trillionbarrelsofoilremainingthatcanbeproducedatacostbelowUS$40perbarrel,aroundthree-quartersoftheminOPECmembercountriesintheMiddleEastandNorthAfrica(MENA).Reflectingitslarge,lowcostreserves,OPEC’sshareofproductionisprojectedtoincreasefrom44percentin2008to52percentby2030(IEA2009c).OPEC’sdecisionsonoilfielddevelopmentwillbecomeprogressivelymoreimportantfortheworldoilmarket.
TheimportanceofOPEC’sinvestmentdecisionswillbeunderpinnedbytheincreasingcostofnon-OPECproduction.Themajorityofnewnon-OPECinvestmentislikelytobeinoffshoreoilfields,increasinglyindeeperwater,furtherbelowtheseabedandagreaterdistancefromshore(includingfieldswithintheArcticcircle).ThecostofoilproductionfromdeepwatersourcesandthoseneedingadvancedtechniquessuchasEORisestimatedtobebetweenUS$35andUS$80abarrel,similartothecostofproductionfromoilsands.ThecostofproducingoilfromtheArcticcouldreachUS$100abarrelbecausethelargecostassociatedwithdevelopinginfrastructureinanenvironmentallychallengingarea(IEA2008).
Theincreaseinoilpricesoverthepastfiveyearshasencouragedexplorationactivityinfrontierregions
Figure 3.30 LongtermoilsupplycostcurveNote: MENA–MiddleEastandNorthAfrica
source: IEA2008
suchastheCamposBasinoffthecoastofBrazilandindeeperwaterintheGulfofMexico.TheBrazilianTupifield,forexample,oneofthemostsignificantoildiscoveriesinthepast20years,is5kmbelowthesurfaceoftheAtlanticOceanandbelowasaltlayerupto2kmthick.InSeptember2009,BPannouncedthediscoveryoftheTiberoilfieldintheGulfofMexico.Theoilfieldis10700mbelowtheoceanfloorandinwaterthatisaround1200mdeep,makingitoneofthedeepestdrilledintheindustry(BP2009b).Thecontinueddevelopmentandapplicationofdeepwaterdrillingandfielddevelopmentwilleventuallyleadtolowerproductioncostsandtheexpansionoffrontierareaswherenewoilfieldscanbedevelopedindeeperwaterandfurtherbelowtheseabed,buttheprocessatpresentiscostly.
Syntheticoilproduction,suchasshaleoil,CTLandGTL,hasthehighestproductioncosts,estimatedbytheIEAatuptoUS$110perbarrel.Thismakesnoallowanceforanycostsassociatedwiththeabatementofgreenhousegasemissionsthatareby-productsoftheprocess.AtpresentthereareveryfewcommercialCTLandGTLprojects,reflectinglargecapitalandproductioncostsandtechnicallychallengingproductionprocesses.
ThefutureexpansionofGTLcapacitywilldependoncompetingusesforgassuchasforelectricitygeneration,transportorexportbypipelineorasLNG.OneofthechallengesforCTLismanagingthehighCO
2output.Eachbarrelofoilproducedfromthis
technologyreleasesbetween0.5and0.7tonnesofCO
2,comparedwitharound0.2tonnesofCO
2 from
abarrelofoilfromtheGTLprocess(IEA2008).
AUSTRALIAN ENERGY RESOURCE ASSESSMENT
66
GTLplantsareoperatinginQatar,SouthAfricaandMalaysiaandtherehasbeenoutputfromanexperimental(500bblsperday)plantinJapan.ThereisoneCTLplantinSouthAfrica.
IncomparisontoGTLandCTL,productionfromoilshaleisthemoreuncertain,givenitsenergyandcarbonintensity.ThereissomeoilproductionfromoilshaleinBrazil,ChinaandEstonia.Theintroductionofapriceforcarbonwouldfurtherincreasethecostofshaleoilextraction.
Recenthighoilpriceshaveencouragedinvestmentintechnologytoimproveextractionofoilfromoilsandsandresearchtocommercialiseoilproductionfromcoalandgas.IftheR&Dissuccessful,itshouldenableproductionofincreasedquantitiesofoilfromunconventionalsources.However,despitetherecentR&Deffort,productioncostsfortheseunconventionalsourceshaveallincreased,associatedwithhighercapitalandoperatingcosts.
FurtherinformationonthelongtermoutlookforoilpricesiscontainedinChapter2.
Oil demandThetwofactorsexpectedtoinfluenceoildemandoverthenexttwodecadesarethecontinueddecreaseinoilintensityinOECDeconomiesandtheincreasedoilconsumptioninnon-OECDeconomiesassociatedwithstrongeconomicgrowth.
IntheOECD,oilintensity(theamountofoilconsumedperunitofGDP)hasbeendecreasingsincetheoilshocksofthe1970s(figure3.31).Oneofthedriversofthistrendhasbeenthemoveawayfromoil-firedelectricitygenerationcapacity,tocoal,gasornuclearpower.Theincreaseinpricesduring2007andthefirsthalfof2008islikelytoreinforcethistrendandwillencourageanalogousresponsesinotherareasofdemandsuchasthetransportsector.Improvedfuelefficiency,increaseduptakeofalternativetransportfuelsanddevelopmentofalternativetransportmodesareallpossibleimpacts.Thecontinueddecreaseinoilintensityalsocomplementsbroaderenvironmentalandenergysecuritypolicygoals.
3.5
3.0
2.5
2.0
1.5
1.0
0.5
01972 1977 1982 1987 1992 1997 2002 2007
Oil
cons
umpt
ion
(bar
rels
per
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)pe
r rea
l GD
P (2
000
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OECD
Non-OECD
AERA 3.31
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Figure 3.31 OilintensityofGDPsource: ABAREestimatesfromIEA2009bdata
Non-OECDeconomies,includingChinaandIndia,areprojectedtogrowstronglyovertheoutlookperiod.Historically,therehasbeenastrongcorrelationbetweeneconomicgrowthandoilconsumption,drivenbyhigherpersonalincomesandincreaseddemandforpersonaltransportandvehicleownership.TheIEAprojectsthat,by2030,non-OECDeconomieswillaccountforaround53percentofworldoilconsumption,comparedwith41percentin2008(IEA2009c).
Resource characteristicsInAustralia,theinitialdepositionalenvironmentsandsubsequentmaturationhistoryafterburialthatarerequiredtoproduceandpreservecrudeoilaccumulations(Box3.1)haveoccurredlessfrequentlythanthegeologicalconditionsthathaveresultedinnaturalgasaccumulations.Australia’sidentifiedconventionalpetroleumresourcesaredominatedbywidelydistributednaturalgas.Incontrast,themajorknownaccumulationsofcrudeoilarerestrictedtotheGippslandBasinandfive‘oily’sub-basins(Longleyetal.2002)alongthenorth-westmargin.Thisdistributioniscontrolledbytheoccurrenceofdeep,narrowtroughscontainingmatureoilsourcerockswhichwereformedaroundthecontinent’smarginsasitbrokeapartfromGondwana.TheGippslandBasinisaworldclassoilprovincewithanumberofgiantfields:itisexceptionalintheAustraliancontext,havingthegreatestthicknessofyoung(Cenozoic)sediments.MostofAustralia’scrudeoilhascomefromthisonesmallbasinbeingsourcedfromanoilkitchen(theCentralDeep)onlyabout50kmwide(figure3.32).
Similarly,thecrudeoilintheExmouth,BarrowandDampiersub-basinsoftheCarnarvonBasin,andintheVulcanSub-basinandtheLaminariaHigh–FlamingoSynclineoftheBonaparteBasinisderivedfromnarrowLateJurassictroughsfilledwithoil-pronesourcerocks.Somecrudeoilaccumulationshavebeenpreservedintheolder(Paleozoic)largelyonshorebasinsbutthemajordiscoveredresourcesandthegreatestpotentialforfuturefindsareoffshore.
ThecondensateandLPGresourcesarealsopredominantlylocatedinoffshorebasins,especiallyingiantgasfieldsontheNorthWestShelf.Gasliquidsarenotpresentinthelargecoalseamgas(CSG)resourcesidentifiedinonshoreeasternAustralia.
Australianshaleoilresourcesarevariableinorganicrichnessandmoisturecontent.ThoseinCenozoicbasinsofeasternQueenslandarethickandrelativelyshallowdepositswithviableoilyields,andhavealowcarbonatecontentwhichdoeshaveadvantagesinprocessing,includinglessCO
2 release.
Technology developmentsThedevelopmentofconventionaloilresourcesinthepasthasbenefitedfromsignificanttechnological
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VICTORIAORBOST
BAIRNSDALE
gton Fault SystemWellin Northere nk Pa laL tformNorthern Terrace
SALE Fault SystRose edale m
SnapperMarlinBarracouta
Fortescue/HalibutCentral DeepBream BassDarr iman CaF na yos e u
oF r lt nt KingfishFau Systel mt
System
GippslandSouthern Platform Rise
0 50 km
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10002000
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Basin outline
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FaultBathymetry contour (metres)100
149°148°147°
38°
39°
Field outline information is provided by GP Info, an Encom Petroleum Information Pty Ltd product. Figure 3.32 GippslandBasinshowingoilandgasfieldsandstructuralelementssource: GeoscienceAustralia,fromdataprovidedbyGeoScienceVictoria
changeoverasustainedperiodoftime,leadingtoincreasedaccesstoreservoirs,increasedrecoveryofreserves,reducedcostsofexplorationandproduction,andreducedtechnicalandeconomicriskstothedevelopmentofoilprojects.Therearesimilartechnologicaladvances–andneeds–indevelopingunconventionalresources.Botharediscussedinmoredetailbelow.
Development of exploration technologyExplorationinvolvesanumberofgeophysicalanddrillingactivitiestodeterminethelocation,size,type(oilorgas)andqualityofapetroleumresource.Priortoareaselection,initialregionalstudies(figure3.33)mayusenon-seismicsurveytechniques(gravity,magneticandgeochemicalsurveys,satelliteimageryandsea-bedsampling)todefinesedimentarybasinsandtodetermineifthereareanyindicationsofnaturalhydrocarbonsseepage.Recenttechnologicaldevelopments,suchasaccurateglobalpositioningsystems,improvedcomputingpower,andalgorithmsforreprocessingexistingseismicdataandadvancedvisualisationtechniquesusedtocombinedifferentdatasets(Wilkinson2006),haveenhancedthevalueofthisphaseoftheexplorationprocess,especiallyinoffshorefrontierbasins.InAustralia,withitslargelyunder-exploredvaston-andoffshorejurisdiction,governmenthastakenanactiveroleinprovidingthisregionalscalepre-competitiveinformationtostimulateexploration.
Hashimotoetal.(2008)demonstratehowavarietyofgeophysicalandotherdatasetscanbeintegratedtoassessthestructureandpetroleumpotentialoftheremotefrontierCapelandFaustbasinsoffshorefromeasternAustralia.Figure3.33isa3DviewacrosstheundrilledCapelandFaustbasinsshowingseismiclinesintegratedwithgravityimagery.Thesedatasetshaveassistedintheidentificationofpotentiallyprospectivethicksedimentarydepocentres,boundingfaultsandstructuralhighsunderlainbyshallowbasementwithinthisvastfrontierarea.
Oncetheprospectiveareaislocated,moredetailedseismicsurveytechniquesareusedtodeterminesubsurfacegeologicalstructures.Advancesin3Dseismicimagingcannowdisplaythesubsurfacestructureingreaterdetail(Wilkinson2006)andamplitudeanalysiscanrevealpotentialpetroleum-bearingreservoirs,contributingtorecenthighdrillingsuccessratesintheCarnarvonBasin(WilliamsonandKroh2007).Developmentsinexplorationdrillingnowallowprospectivestructuresidentifiedonseismictobetestedinwaterdepthsbeyondtwo and half kilometres.
Development of production technologyForonshorefields,developmentproceedsinstepwiththeappraisaldrilling.Inoffshorefields,however,theoptimalnumberandlocationofdevelopmentwellsmustbeidentifiedpriortoproceedingwith thedevelopment.
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AERA 3.33
NTQLD
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Fault
Figure 3.33 Integratedseismicandgravitydatashowingthelocationofmajorfaults,sedimentarydepocentres(gravitylowsdenotedinbluetones)andareasofshallowbasement(gravityhighsdenotedinredtones)fromtheremoteCapelandFaustbasins
source: GeoscienceAustralia
Oilproductionrequirestheestablishmentofproductionwellsandfacilities.Attheinitialstageofproduction,thenaturalpressureofthesub-surfaceoilreservoirforcesoiltoflowtothewellhead.Thisprimaryrecoverycommonlyaccountsfor25to30percentoftotaloilinthereservoir(CEM2004),thoughsomeoffshoreAustralianreservoirshaverecoveryratesof70or80percentsupportedbyanaturalstrongwaterdrive,asinthecaseoftheGippslandBasin.Morecommonly,advancedrecoverytechniquesareemployedtoextractadditionaloilfromthereservoir,includinginjectingwaterorgasintothereservoirtomaintainthereservoir’spressure.Pumpscanalsobeusedtoextractoil.Theseconventionaltechniques can increase the additional amount of recoverableoilbyaround15percent.
Enhancedoilrecovery(EOR)isamoreadvancedtechniquethathasbeendevelopedtoextractadditionaloilfromthereservoir.Thistechniquealterstheoilproperties,makingitflowmoreeasily,byinjectingvariousfluidsandgases,suchascomplexpolymers,CO
2andnitrogen,toenablemore
oiltobeproduced.Thistechniquecouldincreaseoilrecoverybyanadditional40percent,butiscostlytoimplement(IEA2007).Currently,thereare11countries,includingAustralia,participatingintheIEA’sEORImplementingAgreement,whichencouragesinternationalcollaborationonthedevelopmentofnewoilrecoverytechnologies,includinglesscostlyEORtechnology.Whilethesetechniqueshavebeenemployedinthepast,currentlythereisnoEORinAustralia.
Bottom-supported Floating
Submersible Jack-up Semi-submersible Drillship
Thrusters
~50 m
~100 mAnchor chain
Riser
Approximate maximum water depth shown in metres (m)
~600 m ~1500 m AERA 3.34
Figure 3.34 Typesofoffshoredrillingvesselssource: Wilkinson2006
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Reflectingthelargenumberofoilresourceslocatedoffshore,mostR&Dhasbeendirectedtowardoffshoretechnologies.Thereareseveralpossibledevelopmentoptionsforoffshoreoilprojects,basedonbottom-supportedandfloatingproductionfacilities.Thedevelopmentoftheseoptionsisdependentonseveralfactorsincludingresourcetype,reservoirsize,waterdepthanddistancefromshore.Bottom-supportedplatformdevelopmentsaresuitableforrelativelyshallowwaterdepth(figure3.34).
Accesstodeepwaterfieldshasbecometechnologicallyfeasiblewiththerecentd