Australian Petroleum Australian Production

1
The significance of the Queensland CSG sector
and proposed LNG projects in GladstoneBelinda
RobinsonChief Executive

• Australian Petroleum Australian Production
  Exploration Association (APPEA)

2
Australian Industry overview

• Share of primary energy 54
• Value of production gt22 billion pa
• Direct tax payments gt6 billion pa
• Estimated share of GDP 2.5
• Gas reserves to production gt100 years
• Oil reserves to consumption lt10 years
• Exploration expenditure 3 billion pa
• Exploration activity Stagnant

3
The Australian oil story

• Australian crude oil and condensate production
  peaked in 2000
• consumption offset 100 per cent by production
• today, consumption offset about 60 per cent by
  production
• 2017, without major new discoveries, consumption
  will be offset by 32 per cent production
  resulting in a crude oil and condensate trade
  deficit of 28 billion.
• The opportunity Australia is very lightly
  explored
• of 50 sedimentary basins, 12 are under lease or
  licence.
• The challenge enticing those with the capital to
  go looking.

4
Growing oil and condensate deficit
Source ABARE, Geoscience Australia, APPEA
5
Growth in the trade deficit
6
The Australian gas story

• Australia is finding more gas than it is
  producing.
• Australia is extremely well-placed to become one
  of the worlds largest suppliers of LNG with a
  more than 100 year reserves to production ratio.

7
Industry overview
Could be 200 Tcf
8
Burgeoning Australian CSG Industry
Historic CSG Production (PJ)

• Australian CSG is on the same journey as USA,
  starting 20 years later
• Proven technology
• Simple technology
• Massive growth industry
• Clean coal energy source
• Coal remains for future use
• Australia has better quality assets

Source Santos
9
The Queensland gas story

• The CSG industry is rapidly expanding.
• First sales of CSG in Queensland 1998.
• CSG production grown to over 120PJ by May 2008.
• There is more than enough CSG resources to
  satisfy both domestic and export demand.