Australia’s Relationship with Oil

The continent Australia can be seen as having the unluckiest hand in the geological draw. Instead of being a part of Pangea, the large mass that other continents broke off from millions of years ago, Australia was part of a super-continent situated closely to the South Pole, Gwondanaland. It has experienced a drift over the past millennia, but to a less amiable position than most, to a latitude where dry and arid temperatures are the norm. While other continents experienced tectonic fluctuations that promoted fossil fuel formation, Australia continued to remain the driest of all continents, a hard and rough landscape, more conducive to coal formation than to the formation of crude oil deposits. In fact, Australia continues to be the largest exporter of coal (mostly to China), but their oil reserves started at the smallest of amounts at nine billion barrels, about half a percent of the world’s supplies. Luckily, Australia possesses quite a small population due to its harsh landscape and oil usage has been pretty conservative.

Australia has been mostly self-sufficient with its oil production and usage, as 85% of the oil used is domestically produced. However, reserves are dwindling as oil usage is on the rise. Estimates show that by 2010, Australian oil supplies will only provide 42% of their need and will be forced to import the difference, mostly form Middle Eastern reserves. The population of Australia has experienced 300% growth since 1945, but mostly to the coastal cities, while its rural populations have dwindled. The cities are heavily motor vehicle dependent, making need for oil supplies to increase. Because Australia is an island quite separated from other continents, transport of imports to their population is very costly. Transportation of all products throughout Australia is dominated by semis and eighteen-wheelers. As a result, oil dependence continues to grow.

While oil supplies dwindle, Australians are shifting focus to their natural gas supply that accounts for a large part of its energy exports. Though possessing the least hospitable continent, Australia remains the only developed country with large energy exports; 70 percent of their production of coal, uranium, and natural gas is exported. Australia has always been known as a country of tough, adaptable people. Their metal will surely be tested in the coming decades as focus will need to shift in order to keep up with the fuel demands of their population. Natural gas will surely play a pivotal role, and natural gas distributors will be called upon to provide the necessary supply.

About the Author: Robert Jent is the president of Triple Diamond Energy Corp. Triple Diamond Energy specializes in acquiring the highest quality prime oil and gas properties. For more information, visit www.triplediamondenergycorp.blogspot.com.