ATTRACTING INVESTMENT OPPORTUNITIES
Mr Leideman says that despite the low price environment, Australia remains an attractive market.
Close proximity to the Asian market, along with a stable investment environment and significant infrastructure that has been developed in the past few years will allow operators to focus on improving operational
“We have strong global demand, and all predictions are that demand will be up for a long period of time,” Mr Leideman says.
A significant pool of oil and gas reserves, able to be developed via significant brownfield gas and LNG infrastructure now In place, also ensures Australia has a real capability to continue to attract investment.
AUSTRALIA’S NATURAL ADVANTAGE
An LNG boom in the United States and Canada makes it crucial that Australian petroleum production remains globally competitive by utilising innovation and collaboration across the industry.
“At current Henry Hub prices (the US natural gas benchmark), and allowing for transportation and other costs, US-sourced LNG can be landed into Asia at a competitive price, putting pressure on Australian operators,” Mr Leideman says.
“Australia has a natural advantage given its geographical proximity to demand centres, long tradition of LNG exports, strong relationships with customers, a stable government and low political risk. However, these advantages are not entirely sufficient to offset higher cost.
“Thus, it is critical that the Australian industry be efficient and productive. It must leverage innovation and collaboration across the industry to drive down full cycle costs to ready for the oncoming competitive challenge.”