Australia Oil and Gas Market Report and Forecast 2025-2034

Australia Oil and Gas Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia oil and gas market size reached around 157.61 thousand barrels in 2024. Aided by the shift towards cleaner energy sources and renewable integration, alongside the increasing focus on technological innovation, the market is projected to grow at a CAGR of 1.3% between 2025 and 2034, reaching nearly 180.10 thousand barrels by 2034.

The Australia oil and gas market plays a critical role in the country’s economy, providing energy resources essential for various sectors, including transportation, manufacturing, and power generation. Australia is one of the leading oil and gas producers in the Asia Pacific region, and its oil and gas reserves continue to attract both domestic and international investments. Over the years, the market has been shaped by factors such as technological advancements, government policies, and global energy demands, all of which have influenced the growth trajectory of Australia’s energy sector. As Australia continues to shift towards renewable energy, oil and gas remain a significant part of the energy mix, contributing to both economic development and energy security.

The Australia oil and gas market growth is primarily driven by exploration and production activities, both offshore and onshore. The country is home to large-scale offshore oil and gas fields, such as those found in the Carnarvon Basin and the Gippsland Basin. These offshore fields are crucial to meeting domestic demand and serving as significant export sources for the global market. The market has made considerable advancements in offshore drilling technologies, allowing operators to access deeper and more challenging reserves. Innovations such as horizontal drilling and hydraulic fracturing have enabled the extraction of oil and gas from previously untapped sources, supporting the country's status as a major energy producer.

As per the Australia oil and gas market analysis, Australia’s natural gas sector has been a key area of focus in recent years, driven by increasing domestic and international demand. Liquefied natural gas (LNG) exports, in particular, have seen substantial growth, positioning Australia as one of the world’s top exporters of LNG. The demand for natural gas is rising globally as countries seek cleaner energy alternatives to coal and oil. Australia has capitalised on this trend by expanding its LNG infrastructure and securing long-term contracts with major energy-consuming countries, particularly in Asia. This shift towards natural gas as a cleaner fossil fuel, compared to coal, has spurred investment in LNG production and infrastructure projects across the country, creating new opportunities for growth in the market.

The Australia oil and gas market expansion has been impacted by a combination of factors, including fluctuating global oil prices and the country’s efforts to transition towards more sustainable energy sources. However, oil remains an important fuel for transportation and industrial processes. Australia continues to rely on imports for a significant portion of its crude oil needs, despite being a net exporter of natural gas. The country has worked to secure its oil supply through strategic partnerships and investments in domestic refining capacity. In recent years, there has been a growing push to reduce reliance on imported oil by investing in domestic production capabilities, which will help ensure greater energy security in the long term.

Technological innovations aimed at improving production efficiency and reducing environmental impact are revolutionising the Australia oil and gas market landscape. Advances in digital technologies, such as automation, artificial intelligence, and data analytics, are increasingly being employed to optimise exploration, production, and maintenance processes. These innovations help companies monitor operations more effectively, predict equipment failures, and enhance safety measures, leading to cost reductions and improved sustainability. Furthermore, the integration of renewable energy technologies into oil and gas operations, such as solar and wind power, is gaining momentum as part of the broader push to reduce greenhouse gas emissions and improve energy efficiency.

Environmental considerations and regulatory changes are important factors influencing the Australia oil and gas market dynamics. The government has implemented a variety of policies and regulations aimed at mitigating the environmental impact of fossil fuel extraction and production. The introduction of carbon pricing, stricter emissions targets, and more stringent environmental standards have created both challenges and opportunities for the sector. Companies are increasingly being pushed to invest in cleaner technologies and adopt more sustainable practices to comply with regulatory requirements and meet the expectations of investors and consumers. As part of this shift, the market is exploring carbon capture and storage (CCS) technologies to reduce the carbon footprint of oil and gas operations, offering potential solutions for reducing emissions while continuing to produce energy.

Looking forward, the Australia oil and gas market faces several challenges, including the volatility of global energy prices, the need for ongoing investment in infrastructure, and the competition from renewable energy sources. The energy transition towards cleaner, renewable energy is gaining momentum, and while oil and gas will continue to play a role in the energy mix for the foreseeable future, the sector must adapt to a changing global energy landscape. The transition to a low-carbon economy is expected to require new technologies and strategies that balance economic growth with environmental stewardship.

Despite these challenges, the Australia oil and gas market remains poised for continued development, with substantial investment in exploration, production, and LNG infrastructure. The country’s vast natural resources and strategic location in the Asia Pacific region provide significant opportunities for growth, particularly in the LNG sector. As the demand for cleaner energy alternatives rises, the market will continue to evolve, with a greater emphasis on sustainability, innovation, and long-term energy security. In conclusion, while the market faces pressures related to environmental concerns and global energy shifts, the market is likely to remain an integral part of the country’s energy landscape for years to come.

Market Segmentation

The market can be divided based on type, drilling type, application, and region.

Market Breakup by Type

• Upstream
• Midstream
• Downstream

Market Breakup by Drilling Type

• Onshore
• Offshore

Market Breakup by Application

• Institutions
• Residential
• Commercial
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Western Australia
• Australian Capital Territory
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia oil and gas market. Some of the major players explored in the report by Expert Market Research are as follows:

• ExxonMobil Australia Pty Ltd.
• BP Australia Pty Ltd.
• Woodside Energy Group Limited
• Shell Energy Operations Pty Ltd.
• Santos Ltd.
• Origin Energy Limited
• Beach Energy Limited
• Cooper Energy Limited
• Chevron Australia Pty Ltd
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.