Urgent Need to Arrest Declining Trend in Queensland Gas Exploration Activities

More exploration is needed in Queensland to dispel uncertainty about future energy supplies, the Australian Petroleum Production & Exploration Association (APPEA) said.

APPEA Director for Queensland Chris Lamont said the decline in petroleum exploration in the state is leading a national decline in exploration activity for both onshore and offshore activity.

Once a shining light for gas exploration Queensland is now undertaking less exploration than it did 15 years ago, he said.

“We have a clear need for more exploration activity but a plethora of regulatory restrictions and uncertainty are frustrating the industry in ensuring there is the necessary activity in exploration to meet future energy needs,” Lamont said.

Citing the Australian Bureau of Statistics APPEA said onshore petroleum exploration fell 27.8 per cent in the December 2015 quarter, the largest contribution to this decrease was Queensland down 35.1 per cent.

Factors explaining the decline in exploration activity include: regulatory creep; a lack of highly prospective new acreage; data gaps; diminished access to capital; and constraints on access.

“It is vital that Queensland has a vibrant and active exploration sector not just to identify future natural gas sources, but also in identifying the most cost-effective and productive areas from which to source supply,” Lamont stated.