Figure 11 Primary energy consumption in Australia by fuel source (energy units) Source: Australia’s dependence on petroleum fuels is driven by transport demand. In 2011-12, transport accounted for 74 per cent the consumption of petroleum fuels in Australia (Figure 12). Figure 12 Consumption of petroleum by end use Source: The proportion of production of domestic crude oil to net consumption of petroleum fuels increased from 70 per cent in 1973-74 to 98 per cent in 1983-84. It had declined to 44 per cent by 2011-12 (Figure 13). The causes of this decline have been ongoing growth in demand for petroleum fuels and decline in the production of crude oil from existing producing fields, notably the Gippsland and Cooper basins. Figure 13 Consumption and domestic production of petroleum fuels in Australia Source: The outlook for domestic production of petroleum in the late 1970s was commonly perceived to be a decline in domestic petroleum production leading to a relatively rapid decline in liquid fuels self-sufficiency from the relatively high level of around 70 per cent at that time to around 15 per cent by 2005 assuming the then mean estimate of production from undiscovered resources . There are several reasons why this decline did not occur. First, the rise in oil prices in the 1980s let to further development of petroleum fields in Gippsland and the Cooper Basins. Second, the development of new production associated with the North West Shelf project meant that production of domestically produced petroleum increased to its highest level ever by 2002, before declining again as other fields continued to decline. The oil-use-intensity of the Australian economy halved over the period from 1973-74 to 2011-12 from 2.9 PJ per $A billion of GDP to 1.6 PJ per $A billion of GDP (Figure 14). Figure 14 Oil intensity of the Australian economy (PJ/$billion GDP) Source: Australian Energy Statistics Petroleum Market Arrangements General Background The market and policy environment applying in the petroleum industry has evolved significantly over the forty years from 1974 to 2014. These changes have important implications for the way in which the Australian petroleum supply chain responds to interruptions in global supply chains. Production of crude oil commenced in Australia in 1964 when the Moonie field in the Surat Basin in South East Queensland came on stream. This was followed by the Barrow Island oil field in the Carnarvon Basin Western Australia in 1967. Production from the Bass Strait
Figure 11 Primary energy consumption in Australia by fuel source (energy units) Source: Australia’s dependence on petroleum fuels is driven by transport demand. In 2011-12, transport accounted for 74 per cent the consumption of petroleum fuels in Australia (Figure 12). Figure 12 Consumption of petroleum by end use Source: The proportion of production of domestic crude oil to net consumption of petroleum fuels increased from 70 per cent in 1973-74 to 98 per cent in 1983-84. It had declined to 44 per cent by 2011-12 (Figure 13). The causes of this decline have been ongoing growth in demand for petroleum fuels and decline in the production of crude oil from existing producing fields, notably the Gippsland and Cooper basins. Figure 13 Consumption and domestic production of petroleum fuels in Australia Source: The outlook for domestic production of petroleum in the late 1970s was commonly perceived to be a decline in domestic petroleum production leading to a relatively rapid decline in liquid fuels self-sufficiency from the relatively high level of around 70 per cent at that time to around 15 per cent by 2005 assuming the then mean estimate of production from undiscovered resources . There are several reasons why this decline did not occur. First, the rise in oil prices in the 1980s let to further development of petroleum fields in Gippsland and the Cooper Basins. Second, the development of new production associated with the North West Shelf project meant that production of domestically produced petroleum increased to its highest level ever by 2002, before declining again as other fields continued to decline. The oil-use-intensity of the Australian economy halved over the period from 1973-74 to 2011-12 from 2.9 PJ per $A billion of GDP to 1.6 PJ per $A billion of GDP (Figure 14). Figure 14 Oil intensity of the Australian economy (PJ/$billion GDP) Source: Australian Energy Statistics Petroleum Market Arrangements General Background The market and policy environment applying in the petroleum industry has evolved significantly over the forty years from 1974 to 2014. These changes have important implications for the way in which the Australian petroleum supply chain responds to interruptions in global supply chains. Production of crude oil commenced in Australia in 1964 when the Moonie field in the Surat Basin in South East Queensland came on stream. This was followed by the Barrow Island oil field in the Carnarvon Basin Western Australia in 1967. Production from the Bass Strait
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