The Strategic Implications of Trends in Australia’s Indigenous Oil and Natural Gas Reserves

Abstract

Australia is an island continent with vast reserves of energy including coal, uranium and natural gas. It is one of only five Organisation for Economic Co-operation and Development (OECD) countries which are net exporters of energy. Australia is not so well endowed in oil reserves and Australian oil production peaked in 1985–86, several decades before world oil production. Oil consumption has however continued to rise, with the shortfall having to be made up from a growing volume of imports.

In general terms, given the extent of our natural energy resources, Australia should be able to minimise the impact of the increased cost of oil imports due to any ability to:

• maintain electricity production by utilising coal and/or uranium; and

• replace oil used for heating with natural gas, solar and/or coal.