In its quarterly report on the energy industry, energy advisory group EnergyQuest noted a 10 per cent jump in Australian petroleum production for the 2006-07 year, reaching 472 MMboe, due to robust growth in both oil and gas output.
Natural gas production reached 1,661PJ, an increase of 8.9 per cent for the year.
“The growth in gas production reflects the drought still gripping eastern Australia, together with continued growth in exports of LNG,” said EnergyQuest CEO Dr Graeme Bethune.
“In the most recent quarter, gas use for power generation on the east coast more than doubled to offset the fall in coal-fired generation arising from water restrictions in Queensland and Victoria,” he added.
Article continues below…Strong demand for gas has also pushed up wholesale gas prices, with average Victorian spot prices increasing 42 per cent to $5.02/GJ compared with the previous June quarter. Strong prices were also reported on the spot market, with Victorian prices reaching $39.99/GJ.
The report also provided updated estimates of Australian oil and gas reserves at the end of June, with the nation’s proved and probable gas reserves totalling 41,200 PJ.
There were gas reserves of 14,900 PJ on the east coast and 26,250 PJ on the west coast.
Gas reserves on the west coast continue to grow with new discoveries and east coast growth reflects continuing increases in reserves of coal seam gas.
Oil production also increased sharply in the period, rising to 129.8 million barrels, an increase of 16.6 per cent, due to higher production from the Carnarvon Basin, offshore Western Australia.
