REVIEW OF AUSTRALIAN PETROLEUM EXPLORATION, 1967

In Australia, 1967 can aptly be termed the year of the impending energy revolution. The long-awaited upturn in the rate of oil and gas discovery eventuated and was successfully associated with a decided swing to concentration of effort on the continental shelf.Natural gas has dominated the discovery scene to such an extent that if experience in Western Europe is taken as a guide line, natural gas can be expected to supply 20 per cent of the local energy market within the next decade. This is expected to be accomplished primarily at the expense of oil, to a lesser extent of black coal and finally of brown coal. Natural gas will erode only the growth rate of these latter fuels.Natural gas will arrive in about March, 1969, at Melbourne, Brisbane, and Adelaide from the Barracouta, Roma and Gidgealpa-Moomba fields respectively. Gas reserves at Gilmore, Mereenie and Dongara remained undeveloped due principally to market difficulties. Recently a discovery has been made in the Gulf of Papua.Crude oil production from the Moonie-Alton fields increased to more than 8,750 b.p.d. during the year, and deliveries commenced from Barrow Island with production rising to 25,000 b.p.d. by the end of the year. The Marlin, Kingfish and Halibut fields in Bass Strait are expected to be in production by mid-1969.The heavy swing of exploration interest to the continental shelf was probably the most significant feature in the year's search pattern. The remarkable rate of success in the offshore Gippsland Basin was the major factor, but the Barrow-Pasco Island success strengthened this trend. The availability for the first time in Australia of a number of offshore drilling rigs, supported by greatly improved techniques in marine exploration, led to the explosion of interest in this exciting sphere. Despite this, exploration and development costs are considerably less on land, and many major basins remain very poorly explored. Important discoveries in onshore basins must be expected in the future.The passage of new offshore legislation will markedly influence future patterns of exploration. The extent to which this will result in diversification of exploration interest remains to be seen.Oil well statistics on footage drilled indicate an increase of about 43 per cent over the 1966 total, bringing the total footage figure to just over one million feet. Closer examination of these figures, however, discloses a disquieting drop in new exploration footage at the expense of field development wells. Moreover, offshore wells are being drilled to greater total depths. Of 274 wells drilled in 1967, 187 were developmental and 87 exploratory. This compares with 134 wells in 1966 of which 97 were exploratory.In conclusion it would appear that the events of 1967 have pointed to Australia becoming self-sufficient in oil by the mid-1970s, providing present discovery rates are maintained. By that time natural gas is expected to be supplying 20 per cent of the total energy requirements. All of which highlights the probability that 1968 will see the Federal Government looking far more closely at the long-term pricing of Australian crude and the eventual review of incentive formulas.