Australia Oil and Gas Upstream Market Report and Forecast 2025-2034

Australia Oil and Gas Upstream Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia oil and gas upstream market size reached around USD 33.68 billion in 2024. Aided by the growing focus on renewable energy integration and carbon reduction initiatives and the increasing investment in advanced technologies, the market is projected to grow at a CAGR of 2.0% between 2025 and 2034, reaching a value of almost USD 41.10 billion by 2034.

The Australia oil and gas upstream market is a cornerstone of the nation's energy sector, focusing on the exploration, extraction, and initial processing of oil and gas resources. As one of the major oil and gas producers in the Asia Pacific, Australia possesses vast reserves of both oil and natural gas, located primarily offshore in the country’s expansive coastal regions. This market is integral to meeting both domestic demand and global energy needs, particularly with increasing exports of liquefied natural gas (LNG). Over the years, the market has seen significant advancements in technology, regulatory changes, and investment patterns, all of which have played a critical role in its growth and transformation.

One of the main drivers aiding the Australia oil and gas upstream market expansion is the growing demand for LNG. Australia has emerged as one of the world’s top LNG exporters, with strong growth in production from major offshore gas fields such as the Carnarvon Basin and the Gippsland Basin. The growing demand for natural gas globally, particularly from energy-hungry markets in Asia, has been a critical factor in spurring investment in the market. As countries such as China, Japan, and South Korea transition to cleaner energy sources, LNG is increasingly viewed as a key component in the global energy mix. Australia’s strategic location, coupled with its abundant natural gas reserves, positions the country as a key supplier to these markets, boosting the market.

As per the Australia oil and gas upstream market analysis, the expansion of LNG production has led to substantial investments in upstream infrastructure, including pipelines, liquefaction plants, and export terminals. These developments are crucial in ensuring the effective extraction, processing, and transportation of natural gas to global markets. Australia’s LNG infrastructure, particularly along the east and west coasts, continues to grow as energy demand from Asian markets rises. The substantial capital investments in these facilities demonstrate the growing importance of the LNG export sector and its central role in the country’s upstream oil and gas market.

The demand for oil in Australia, while not as high as natural gas, remains an important aspect shaping the Australia oil and gas upstream market dynamics. The country’s crude oil production has been steadily declining in recent years, but it continues to play a role in the domestic energy mix. Australia remains a net importer of oil, despite significant domestic production, and continues to rely on global supply chains to meet its crude oil needs. The upstream oil sector remains essential for maintaining energy security in Australia, with ongoing exploration efforts seeking to tap into both offshore and onshore oil reserves. The development of oil infrastructure, including pipelines, storage tanks, and refining facilities, is integral to the oil supply chain, ensuring that both domestic consumption and export requirements are met.

Technological advancements in extraction and production methods have revolutionised the Australia oil and gas upstream market landscape. The adoption of advanced drilling technologies, such as horizontal drilling and hydraulic fracturing, has allowed Australian oil and gas companies to access previously untapped reserves, particularly in challenging environments. These technologies have enhanced the efficiency of exploration and extraction, enabling operators to extract more oil and gas from existing fields and tap into deeper and more remote reserves. The development and implementation of such technologies have increased the competitiveness of Australian oil and gas companies, allowing them to remain profitable despite fluctuating global oil prices.

Digital transformation is also playing a significant role in driving the Australia oil and gas upstream market development. The introduction of digital technologies, including automation, data analytics, and artificial intelligence, has revolutionised the way companies monitor, control, and optimise their operations. Real-time data analysis and predictive maintenance technologies have allowed companies to reduce downtime, improve operational efficiency, and enhance safety measures. These innovations are not only reducing costs but also improving the sustainability of upstream operations, contributing to a more efficient and environmentally responsible oil and gas sector.

Despite the positive growth trends in the Australia oil and gas upstream market, challenges remain, particularly related to environmental concerns and the need to adapt to the global shift towards cleaner energy sources. The oil and gas sector faces increasing pressure to reduce its carbon footprint and minimise environmental damage associated with extraction processes. In response to these concerns, many Australian oil and gas companies are investing in carbon capture and storage (CCS) technologies, which can help to mitigate the environmental impact of oil and gas production. Additionally, operators are increasingly exploring ways to integrate renewable energy into their operations, such as using wind or solar energy to power offshore platforms or drilling rigs, in an effort to reduce dependence on fossil fuels.

Regulatory changes and government policies also play a crucial role in boosting the Australia oil and gas upstream market revenue. The Australian government has implemented a range of policies aimed at balancing the need for energy production with environmental protection. These policies include strict regulations on exploration, drilling, and emissions, as well as incentives for the development of more sustainable technologies. The government’s commitment to reducing carbon emissions and transitioning to cleaner energy sources has led to a growing focus on renewable energy while ensuring that oil and gas production continues to meet domestic and international energy demands. This balancing act is central to the future of the market in Australia.

Market Segmentation

The market can be divided based on type, drilling technology, production site, end use, and region.

Market Breakup by Type

• Oil and Gas Wells Drilling Services
• Crude Oil
• Oil and Gas Supporting Activities
• Natural Gas

Market Breakup by Drilling Technology

• Unconventional
• Horizontal Drilling
• Others
• Conventional
• Vertical Drilling
• Others

Market Breakup by Production Site

• Offshore
• Onshore

Market Breakup by End Use

• Natural Gas Extraction Comprises
• Crude Petroleum Comprises

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 upstream market. Some of the major players explored in the report by Expert Market Research are as follows:

• Chevron Australia Pty Ltd.
• Shell Australia Pty Limited
• BP Australia Pty Limited
• Origin Energy Limited
• ExxonMobil Australia Pty Ltd.
• Woodside Energy Group Limited
• Santos Ltd.
• Beach Energy Limited
• INPEX Corporation
• 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.