Prices within the Australian oil market are expected to increase strongly in 2011-12 in US and Australian dollars. Revenue gains in 2010-11 and 2011-12 are expected to more than reverse the ground lost over the previous two years, when prices in US and Australian dollars slumped in response to the global financial crisis.
In 2011, the Australian oil market recorded a capacity of 3.8 billion barrels of proven oil reserves. The majority of these reserves were located off Western Australia in the Carnarvon basin and in the Bass Strait, off Southern Australia.
The Australian oil industry produced approximately 185.8 million barrels of crude oil in 2011, while its consumption was valued at approximately 364 million barrels.
Production within the Australian oil market has been in decline since 2001 due to natural declines, coupled with a lack of new fields coming online.
The contribution of oil and natural gas to Australia's primary energy consumption is secondary to coal. Oil accounted for 34.4% of Australia's total primary energy consumption in 2011, followed by natural gas (21.6%) and electricity (renewable) and bio- fuel combine (3.5%). The contribution of coal was 40.6%.
Australia's oil production is wavering but gas output, including coal seam methane, is growing strongly. The oil and gas production industry's revenue is expected to grow at an annualised rate of 2.7% over the five years through 2011-12, to reach $38.8 billion.
For more information on the Australian oil market, see the latest research: Australian Oil Market Report
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