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Petroleum industry in Western Australia - Wikipedia
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class="vector-toc-numb">2</span> <span>Geology</span> </div> </a> <ul id="toc-Geology-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Products" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Products"> <div class="vector-toc-text"> <span class="vector-toc-numb">3</span> <span>Products</span> </div> </a> <button aria-controls="toc-Products-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Products subsection</span> </button> <ul id="toc-Products-sublist" class="vector-toc-list"> <li id="toc-LNG" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#LNG"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.1</span> <span>LNG</span> </div> </a> <ul id="toc-LNG-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Domestic_gas" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Domestic_gas"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.2</span> <span>Domestic gas</span> </div> </a> <ul id="toc-Domestic_gas-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Petroleum_liquids_(Crude_oil,_condensate_and_LPG)" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Petroleum_liquids_(Crude_oil,_condensate_and_LPG)"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.3</span> <span>Petroleum liquids (Crude oil, condensate and LPG)</span> </div> </a> <ul id="toc-Petroleum_liquids_(Crude_oil,_condensate_and_LPG)-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Sector_organisation" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Sector_organisation"> <div class="vector-toc-text"> <span class="vector-toc-numb">4</span> <span>Sector organisation</span> </div> </a> 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class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Transportation"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.3</span> <span>Transportation</span> </div> </a> <ul id="toc-Transportation-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Refining" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Refining"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.4</span> <span>Refining</span> </div> </a> <ul id="toc-Refining-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Issues" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Issues"> <div class="vector-toc-text"> <span class="vector-toc-numb">5</span> <span>Issues</span> </div> </a> <button aria-controls="toc-Issues-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon 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<div class="vector-toc-text"> <span class="vector-toc-numb">5.3</span> <span>Garnaut Climate Change Review</span> </div> </a> <ul id="toc-Garnaut_Climate_Change_Review-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Security" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Security"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.4</span> <span>Security</span> </div> </a> <ul id="toc-Security-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Further_reading" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Further_reading"> <div class="vector-toc-text"> <span class="vector-toc-numb">6</span> <span>Further reading</span> </div> </a> <ul id="toc-Further_reading-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-References" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" 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</div> </div> <div id="bodyContent" class="vector-body" aria-labelledby="firstHeading" data-mw-ve-target-container> <div class="vector-body-before-content"> <div class="mw-indicators"> </div> <div id="siteSub" class="noprint">From Wikipedia, the free encyclopedia</div> </div> <div id="contentSub"><div id="mw-content-subtitle"></div></div> <div id="mw-content-text" class="mw-body-content"><div class="mw-content-ltr mw-parser-output" lang="en" dir="ltr"><div class="shortdescription nomobile noexcerpt noprint searchaux" style="display:none">Overview of WA energy sector</div> <p class="mw-empty-elt"> </p> <style data-mw-deduplicate="TemplateStyles:r1236090951">.mw-parser-output .hatnote{font-style:italic}.mw-parser-output div.hatnote{padding-left:1.6em;margin-bottom:0.5em}.mw-parser-output .hatnote i{font-style:normal}.mw-parser-output .hatnote+link+.hatnote{margin-top:-0.5em}@media print{body.ns-0 .mw-parser-output .hatnote{display:none!important}}</style><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Petroleum_in_Australia" title="Petroleum in Australia">Petroleum in Australia</a></div> <figure class="mw-default-size mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:AustGasReserves2008.png" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/5/57/AustGasReserves2008.png/220px-AustGasReserves2008.png" decoding="async" width="220" height="176" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/5/57/AustGasReserves2008.png/330px-AustGasReserves2008.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/5/57/AustGasReserves2008.png/440px-AustGasReserves2008.png 2x" data-file-width="893" data-file-height="715" /></a><figcaption>Western Australia's share of Australian gas reserves</figcaption></figure> <figure class="mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:ABS-8412.0-MineralPetroleumExplorationAustralia-PetroleumExplorationExpenditureByStateTerritory-WesternAustralia-A4082896L.svg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/f/f9/ABS-8412.0-MineralPetroleumExplorationAustralia-PetroleumExplorationExpenditureByStateTerritory-WesternAustralia-A4082896L.svg/300px-ABS-8412.0-MineralPetroleumExplorationAustralia-PetroleumExplorationExpenditureByStateTerritory-WesternAustralia-A4082896L.svg.png" decoding="async" width="300" height="200" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/f/f9/ABS-8412.0-MineralPetroleumExplorationAustralia-PetroleumExplorationExpenditureByStateTerritory-WesternAustralia-A4082896L.svg/450px-ABS-8412.0-MineralPetroleumExplorationAustralia-PetroleumExplorationExpenditureByStateTerritory-WesternAustralia-A4082896L.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/f/f9/ABS-8412.0-MineralPetroleumExplorationAustralia-PetroleumExplorationExpenditureByStateTerritory-WesternAustralia-A4082896L.svg/600px-ABS-8412.0-MineralPetroleumExplorationAustralia-PetroleumExplorationExpenditureByStateTerritory-WesternAustralia-A4082896L.svg.png 2x" data-file-width="512" data-file-height="341" /></a><figcaption>Quarterly petroleum exploration expenditure ($millions) in Western Australia since 1994</figcaption></figure> <p>The <b>petroleum industry in <a href="/wiki/Western_Australia" title="Western Australia">Western Australia</a></b> is the largest contributor to the country's petroleum exports. Western Australia's <a href="/wiki/North_West_Shelf" title="North West Shelf">North West Shelf</a> (NWS) is the primary location from which production originates. Oil exports are shipped from <a href="/wiki/Port_Hedland,_Western_Australia" title="Port Hedland, Western Australia">Port Hedland</a>. </p><p>Based largely on development of the reserves of the North West Shelf and onshore <a href="/w/index.php?title=Hydrocarbon_basin&action=edit&redlink=1" class="new" title="Hydrocarbon basin (page does not exist)">hydrocarbon basins</a>, the industry extracts <a href="/wiki/Crude_oil" class="mw-redirect" title="Crude oil">crude oil</a>, <a href="/wiki/Natural_gas_condensate" class="mw-redirect" title="Natural gas condensate">condensate</a> and <a href="/wiki/Natural_gas" title="Natural gas">natural gas</a> from petroleum reservoirs deep beneath the Earth's surface.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> A large plant located at <a href="/w/index.php?title=Withnell_Bay&action=edit&redlink=1" class="new" title="Withnell Bay (page does not exist)">Withnell Bay</a> near <a href="/wiki/Dampier,_Western_Australia" title="Dampier, Western Australia">Dampier</a>, produces <a href="/wiki/Liquefied_natural_gas" title="Liquefied natural gas">liquefied natural gas</a> (LNG) for export to Asian customers. Crude oil and most petroleum liquids are exported. Australia's largest petroleum refinery at <a href="/wiki/City_of_Kwinana" title="City of Kwinana">Kwinana</a> in WA's south-West, closed in 2021.<sup id="cite_ref-DownstreamReport_2-0" class="reference"><a href="#cite_note-DownstreamReport-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> Natural gas is processed at plants located on islands off the WA coast (e.g. The "Gorgon Gas Project" on Barrow Island) and onshore, then transported by <a href="/wiki/List_of_natural_gas_pipelines_in_Western_Australia" title="List of natural gas pipelines in Western Australia">pipelines</a> to gas users throughout the state. </p><p>In 2007, the industry produced 126 million barrels (20,000,000 m<sup>3</sup>) of crude oil/condensate, and 30 billion cubic metres of gas. Approximately 65% of the gas was transformed into 12 million tonnes of LNG (all of which was exported), with the remainder of the gas being sold to users in Western Australia.<sup id="cite_ref-ABARE2008_3-0" class="reference"><a href="#cite_note-ABARE2008-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> Primary production by the industry was valued at $16.7 billion, accounting for 31% of all natural resources produced in the state.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="Early_history">Early history</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=1" title="Edit section: Early history"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The earliest petroleum-related activity in the state was in 1902, with the first oil exploration well drilled near the Warren River area in the southwest.<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> Traces of oil were found in a bore near Fitzroy Crossing in 1919.<sup id="cite_ref-APPEAhistory_6-0" class="reference"><a href="#cite_note-APPEAhistory-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> Formal exploration in Western Australia started in 1946, when the Australian Motorists Petrol Company (AMPOL) commenced an exploration programme, using the services of the Bureau of Mineral Resources (BMR) which had been set up by the Australian government in the same year to conduct survey work. In the following year, AMPOL were awarded the first two exploration permits in Western Australia near Exmouth.<sup id="cite_ref-PCWAhistory_7-0" class="reference"><a href="#cite_note-PCWAhistory-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> </p><p>Large-scale surveys were conducted in the <a href="/wiki/Canning_Basin" title="Canning Basin">Canning Basin</a> in 1947, and in the same year, <a href="/wiki/Ampol" title="Ampol">Ampol</a> secured exploration permits for the Exmouth region. Ampol formed a joint venture with Standard Oil of California. The new company was called <a href="/wiki/WAPET" title="WAPET">West Australian Petroleum (WAPET)</a>, and drilled its first well at <a href="/wiki/Rough_Range" title="Rough Range">Rough Range</a> in 1953. This well produced at a rate of 550 barrels per day (87 m<sup>3</sup>/d), and was probably the commencement of Australia's commercial petroleum industry.<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> In the following year, WAPET geologists conducted a basic survey of <a href="/wiki/Barrow_Island_(Western_Australia)" title="Barrow Island (Western Australia)">Barrow Island</a>. They were the first civilians to visit the area since British atomic testing on the nearby <a href="/wiki/Monte_Bello_Islands" class="mw-redirect" title="Monte Bello Islands">Monte Bello Islands</a>.<sup id="cite_ref-APPEAhistory_6-1" class="reference"><a href="#cite_note-APPEAhistory-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> The company achieved major commercial success with a large discovery on the island in 1964, which was followed by a large scale operation which continues to this day. </p><p>In 1966, WAPET discovered WA's first commercial quantities of natural gas near Dongara. Construction of the state's first gas pipeline was completed in 1971. The pipeline transported gas from Dongara to Perth, Kwinana and Pinjarra. Originally known as the WANG Pipeline (after WA Natural Gas Pty Ltd which was a WAPET subsidiary), it is still in operation and now known as the Parmelia Pipeline. Woodside received its first permits to explore the Carnarvon basin in 1963. The 1971 gas/condensate discoveries by the BOCAL consortium at Scott Reef, North Rankin and Goodwyn were followed by a further gas/condensate discovery at Angel in 1972.<sup id="cite_ref-APPEAhistory_6-2" class="reference"><a href="#cite_note-APPEAhistory-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Geology">Geology</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=2" title="Edit section: Geology"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <figure class="mw-default-size" typeof="mw:File/Thumb"><a href="/wiki/File:PetroleumBasinsWA.png" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/2/2e/PetroleumBasinsWA.png/220px-PetroleumBasinsWA.png" decoding="async" width="220" height="317" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/2/2e/PetroleumBasinsWA.png/330px-PetroleumBasinsWA.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/2/2e/PetroleumBasinsWA.png/440px-PetroleumBasinsWA.png 2x" data-file-width="700" data-file-height="1008" /></a><figcaption>Western Australia's sedimentary basins</figcaption></figure> <p>Five of the seven major sedimentary basins in Western Australia have known hydrocarbon accumulations,with 2007–08 production coming from the Carnarvon, Perth, Bonaparte and Canning basins. Sixty-one fields were on production during 2007–08 fiscal year.<sup id="cite_ref-PWA2008_9-0" class="reference"><a href="#cite_note-PWA2008-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> Petroleum in Western Australia is mostly sourced from the <a href="/wiki/Carnarvon_Basin" title="Carnarvon Basin">Carnarvon Basin</a>, which stretches for 1,000 km of the west and northwest coast, from Geraldton to north of Port Hedland. In area, the onshore part of the Carnarvon Basin covers about 115,000 km<sup>2</sup> and the offshore part covers approximately 535,000 km<sup>2</sup> with water depths up to 3,500 m.<sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup> </p><p>Less than 5% of the state's gas comes from fields near Dongara, part of the Perth basin, which extends about 1300 km along the southwestern margin of the continent. This is a large (172,300 km<sup>2</sup>) basin that formed during the separation of Australia and Greater India in the Permian to Early Cretaceous period. It includes a significant onshore component and extends offshore to the edge of continental crust in water depths of up to 4500 m.<sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup> The Officer basin, straddling the WA-SA border in the south-east section of the state, is a poorly explored basin, with limited seismic coverage, although more than 20 exploration wells have been drilled.<sup id="cite_ref-12" class="reference"><a href="#cite_note-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> A small amount of oil is produced in the Canning basin, in which 250 wells have been drilled and 78,000 line-km of 2D seismic surveys has been shot.<sup id="cite_ref-13" class="reference"><a href="#cite_note-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> A local company, Arc Energy, currently the largest Perth basin producer, is actively exploring and drilling in the Canning basin.<sup id="cite_ref-PWA2008_9-1" class="reference"><a href="#cite_note-PWA2008-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Products">Products</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=3" title="Edit section: Products"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading3"><h3 id="LNG">LNG</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=4" title="Edit section: LNG"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <figure class="mw-default-size mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:Karratha_Western_Australia_Aerial2.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/c/c5/Karratha_Western_Australia_Aerial2.jpg/220px-Karratha_Western_Australia_Aerial2.jpg" decoding="async" width="220" height="147" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/c/c5/Karratha_Western_Australia_Aerial2.jpg/330px-Karratha_Western_Australia_Aerial2.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/c/c5/Karratha_Western_Australia_Aerial2.jpg/440px-Karratha_Western_Australia_Aerial2.jpg 2x" data-file-width="2592" data-file-height="1736" /></a><figcaption> The town of Karratha, situated near the Burrup Peninsula, in the Pilbara region</figcaption></figure> <p>The <a href="/wiki/North_West_Shelf_Venture" title="North West Shelf Venture">North West Shelf Venture</a> (NWSV), a consortium of six energy companies led by Woodside, operates five <a href="/wiki/LNG_train" class="mw-redirect" title="LNG train">LNG trains</a> near Karratha. It relies on natural gas supplied from North Rankin, Goodwyn and Perseus fields in the Northwest Shelf (NWS). The majority of LNG produced by the NWSV is exported to Japan, with occasional spot sales to the United States, Spain and Korea.<sup id="cite_ref-EIAaus_14-0" class="reference"><a href="#cite_note-EIAaus-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> A fifth <a href="/wiki/LNG_train" class="mw-redirect" title="LNG train">LNG train</a> is currently under construction and is expected to increase export capacity by an additional 4.2 million tons, bringing total capacity to around 16 million tonnes per year. The cost of the project is estimated at $1.6 billion, with startup in late 2008.<sup id="cite_ref-15" class="reference"><a href="#cite_note-15"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup> </p><p>Although the NWSV dominates Australia's LNG market, additional projects are in various stages of planning, the largest of which is the <a href="/wiki/Gorgon_gas_project" title="Gorgon gas project">Gorgon gas project</a>. Chevron (along with joint venture partners Shell and ExxonMobil) is considering development of the Greater Gorgon gas fields, which contain recoverable reserves of 40 trillion cubic feet (1,100 km<sup>3</sup>). The project entails constructing subsea pipelines from the Gorgon and Jansz fields to Australia's <a href="/wiki/Barrow_Island_(Western_Australia)" title="Barrow Island (Western Australia)">Barrow Island</a>, where 3 liquefaction trains will produce 15 million tons of LNG per year.<sup id="cite_ref-gorgonEIS_16-0" class="reference"><a href="#cite_note-gorgonEIS-16"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Domestic_gas">Domestic gas</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=5" title="Edit section: Domestic gas"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <figure class="mw-default-size mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:Thevenard_Island_Facilities.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/e/ec/Thevenard_Island_Facilities.jpg/220px-Thevenard_Island_Facilities.jpg" decoding="async" width="220" height="127" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/e/ec/Thevenard_Island_Facilities.jpg/330px-Thevenard_Island_Facilities.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/e/ec/Thevenard_Island_Facilities.jpg/440px-Thevenard_Island_Facilities.jpg 2x" data-file-width="1790" data-file-height="1030" /></a><figcaption>Petroleum treatment and storage facilities at Thevenard Island, approx 25 km off the coast near Onslow, Western Australia. A treatment plant produces gas for export via a subsea pipeline to customers on the mainland</figcaption></figure> <p>In 2006-07, around two thirds of Australia's natural gas was produced in the Carnarvon Basin off the coast of Western Australia.<sup id="cite_ref-ABARE2008_3-1" class="reference"><a href="#cite_note-ABARE2008-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> Most of the gas produced in WA is transformed into liquefied natural gas (LNG) and exported to Japan. The remainder is used within the state. The domestic market for natural gas in WA, like that of Australia as a whole, is characterised by a small number of producers and a small number of large industrial consumers, with limited depth in consumption.<sup id="cite_ref-ABARE2008_3-2" class="reference"><a href="#cite_note-ABARE2008-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:ABS-6291.0.55.003-LabourForceAustraliaDetailedQuarterly-EmployedPersonsByIndustrySubdivisionSex-EmployedTotal-GasSupply-Persons-A2546156F.svg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/e/e0/ABS-6291.0.55.003-LabourForceAustraliaDetailedQuarterly-EmployedPersonsByIndustrySubdivisionSex-EmployedTotal-GasSupply-Persons-A2546156F.svg/220px-ABS-6291.0.55.003-LabourForceAustraliaDetailedQuarterly-EmployedPersonsByIndustrySubdivisionSex-EmployedTotal-GasSupply-Persons-A2546156F.svg.png" decoding="async" width="220" height="147" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/e/e0/ABS-6291.0.55.003-LabourForceAustraliaDetailedQuarterly-EmployedPersonsByIndustrySubdivisionSex-EmployedTotal-GasSupply-Persons-A2546156F.svg/330px-ABS-6291.0.55.003-LabourForceAustraliaDetailedQuarterly-EmployedPersonsByIndustrySubdivisionSex-EmployedTotal-GasSupply-Persons-A2546156F.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/e/e0/ABS-6291.0.55.003-LabourForceAustraliaDetailedQuarterly-EmployedPersonsByIndustrySubdivisionSex-EmployedTotal-GasSupply-Persons-A2546156F.svg/440px-ABS-6291.0.55.003-LabourForceAustraliaDetailedQuarterly-EmployedPersonsByIndustrySubdivisionSex-EmployedTotal-GasSupply-Persons-A2546156F.svg.png 2x" data-file-width="512" data-file-height="341" /></a><figcaption>Total employment in the gas supply industry (thousands of people) since 1984</figcaption></figure> <p>The state's two largest individual users of gas are <a href="/wiki/Alcoa" title="Alcoa">Alcoa</a> (which operates three alumina refineries in the south-west) and Burrup Fertilisers (which operates the world's largest ammonia plant on the Burrup Peninsula, near Dampier). Together they account for more than half of the natural gas consumed in WA. Most of the remaining gas is used for electricity generation and by other smaller industrial and commercial users. Residential gas users consume only about 2% of the natural gas produced in the state.<sup id="cite_ref-MMMA_JWGreport_17-0" class="reference"><a href="#cite_note-MMMA_JWGreport-17"><span class="cite-bracket">[</span>17<span class="cite-bracket">]</span></a></sup> </p><p>There are three main 'supply lines' for WA's domestic gas: </p> <ul><li>65% From the North-West Shelf domestic gas plant near Dampier, operated by Woodside Energy, transporting gas via the Dampier to Bunbury Natural gas Pipeline (DBNGP);</li> <li>30% From the Varanus Island facility operated by Apache Energy on behalf of a number of production joint ventures. Output from the Varanus Island plant is divided between mineral processing operations who receive their gas via the Goldfields Gas Pipeline, and industrial and commercial customers in Perth and the southwest who receive their supplies via the DBNGP which links with the Varanus Island trunk line about 130 km south of Dampier; and</li> <li>5% From small gas producers near Dongara, transported via the Parmelia Pipeline.</li></ul> <div class="mw-heading mw-heading3"><h3 id="Petroleum_liquids_(Crude_oil,_condensate_and_LPG)"><span id="Petroleum_liquids_.28Crude_oil.2C_condensate_and_LPG.29"></span>Petroleum liquids (Crude oil, condensate and LPG)</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=6" title="Edit section: Petroleum liquids (Crude oil, condensate and LPG)"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:WApetroleumShare2007.png" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/4/43/WApetroleumShare2007.png/220px-WApetroleumShare2007.png" decoding="async" width="220" height="165" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/4/43/WApetroleumShare2007.png/330px-WApetroleumShare2007.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/4/43/WApetroleumShare2007.png/440px-WApetroleumShare2007.png 2x" data-file-width="960" data-file-height="720" /></a><figcaption>Western Australia's share of national petroleum production in 2007</figcaption></figure> <p>Oil production in Australia increased gradually after 1980, peaking in 2000 at 805,000 barrels per day (128,000 m<sup>3</sup>/d). In 2003, production fell dramatically to 630,522 bbl/d (100,245.0 m<sup>3</sup>/d). In 2006, Australia produced approximately 562,000 bbl/d (89,400 m<sup>3</sup>/d) of oil.<sup id="cite_ref-EIAaus_14-1" class="reference"><a href="#cite_note-EIAaus-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> </p><p>Western Australia is Australia's leading oil (and condensate) producing State, having surpassed Victoria, where production from the Gippsland Basin off the southern coast has been steadily declining. Western Australia currently produces 71% of Australia's crude oil and condensate.<sup id="cite_ref-APPEAkeyStats_18-0" class="reference"><a href="#cite_note-APPEAkeyStats-18"><span class="cite-bracket">[</span>18<span class="cite-bracket">]</span></a></sup> Australian crude oil and condensate production is projected to increase in the medium term (mainly due to new supply sources in Western Australia) before declining gradually.<sup id="cite_ref-ABARE2008_3-3" class="reference"><a href="#cite_note-ABARE2008-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Sector_organisation">Sector organisation</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=7" title="Edit section: Sector organisation"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Similar to petroleum industries in other market-capitalist economies such as those in Western Europe and North America, the structure of the WA petroleum industry is characterised by the involvement of private corporations, with an important regulatory role occupied by the <a href="/wiki/Government_of_Australia" class="mw-redirect" title="Government of Australia">federal</a> and <a href="/wiki/Government_of_Western_Australia" title="Government of Western Australia">state</a> governments in most aspects of the industry.<sup id="cite_ref-EIAaus_14-2" class="reference"><a href="#cite_note-EIAaus-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> Australian companies operating in the industry include <a href="/wiki/Woodside_Energy" title="Woodside Energy">Woodside Energy</a> and <a href="/wiki/Santos_Limited" title="Santos Limited">Santos</a>. Foreign-owned companies involved in the state include <a href="/wiki/Apache_Corporation" class="mw-redirect" title="Apache Corporation">Apache Energy</a>, <a href="/wiki/BP" title="BP">BP</a>, <a href="/wiki/Chevron_Corporation" title="Chevron Corporation">Chevron</a>, <a href="/wiki/ExxonMobil" title="ExxonMobil">ExxonMobil</a>, <a href="/wiki/Shell_plc" title="Shell plc">Shell</a>, <a href="/wiki/Inpex" title="Inpex">Inpex</a> and <a href="/wiki/ConocoPhillips" title="ConocoPhillips">ConocoPhillips</a>. </p> <div class="mw-heading mw-heading3"><h3 id="Government">Government</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=8" title="Edit section: Government"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Government involvement in the industry covers areas such as policy development, safety and environmental regulation, investment facilitation, provision of infrastructure, releases of new exploration areas, acquisition of regional geological data. The legal framework within which petroleum exploration and development occurs is a result of the division of responsibilities between the Commonwealth and the states/territories under the Constitution and inter-governmental agreements (in particular, the 1978-79 <a href="/wiki/Offshore_Constitutional_Settlement" title="Offshore Constitutional Settlement">Offshore Constitutional Settlement</a>).<sup id="cite_ref-APPEA_main_issues_19-0" class="reference"><a href="#cite_note-APPEA_main_issues-19"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup> </p><p>Onshore, and out to 3 nm (nautical miles) from the territorial sea baseline (coastal waters), petroleum operations are the responsibility of the state government. WA's offshore areas beyond the 3 nm limit are governed by Commonwealth legislation (Offshore Petroleum Act 2005) administered by the Department of Innovation, Industry, Science and Research.<sup id="cite_ref-APPEA_main_issues_19-1" class="reference"><a href="#cite_note-APPEA_main_issues-19"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup> The <a href="/wiki/United_Nations_Convention_on_the_Law_of_the_Sea" title="United Nations Convention on the Law of the Sea">Law of the Sea Convention</a> gives effect to a system of Exclusive Economic Zones under which nations have sovereign rights over natural resources out to 200 nm from the coast (Australia claimed such rights in 1994 under the Maritime Legislation Amendment Act 1994). The convention also allows Australia to claim sovereign rights over seabed resources where the continental shelf extends beyond 200 nm.<sup id="cite_ref-20" class="reference"><a href="#cite_note-20"><span class="cite-bracket">[</span>20<span class="cite-bracket">]</span></a></sup> State agencies also administer some aspects of federal petroleum-related legislation on behalf of the Commonwealth.<sup id="cite_ref-APPEA_main_issues_19-2" class="reference"><a href="#cite_note-APPEA_main_issues-19"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup> </p> <table class="wikitable"> <caption>Commonwealth </caption> <tbody><tr> <th>Department / agency</th> <th>Role </th></tr> <tr> <td><a href="/wiki/Department_of_Innovation,_Industry,_Science_and_Research" title="Department of Innovation, Industry, Science and Research">Department of Innovation, Industry, Science and Research</a></td> <td>Advice and policy support regarding resources and energy<sup id="cite_ref-21" class="reference"><a href="#cite_note-21"><span class="cite-bracket">[</span>21<span class="cite-bracket">]</span></a></sup> </td></tr> <tr> <td><a href="/wiki/National_Offshore_Petroleum_Safety_Authority" class="mw-redirect" title="National Offshore Petroleum Safety Authority">National Offshore Petroleum Safety Authority</a></td> <td>Administers offshore petroleum safety legislation<sup id="cite_ref-22" class="reference"><a href="#cite_note-22"><span class="cite-bracket">[</span>22<span class="cite-bracket">]</span></a></sup> </td></tr> <tr> <td><a href="/wiki/Foreign_Investment_Review_Board" title="Foreign Investment Review Board">Foreign Investment Review Board</a></td> <td>Approval of foreign investments >$100 m<sup id="cite_ref-23" class="reference"><a href="#cite_note-23"><span class="cite-bracket">[</span>23<span class="cite-bracket">]</span></a></sup> </td></tr> <tr> <td><a href="/wiki/Geoscience_Australia" title="Geoscience Australia">Geoscience Australia</a></td> <td>Research and advice to government and industry on petroleum prospects, reserves and potential<sup id="cite_ref-24" class="reference"><a href="#cite_note-24"><span class="cite-bracket">[</span>24<span class="cite-bracket">]</span></a></sup> </td></tr> <tr> <td><a href="/wiki/Department_of_the_Environment,_Water,_Heritage_and_the_Arts" title="Department of the Environment, Water, Heritage and the Arts">Department of the Environment, Water, Heritage and the Arts</a></td> <td>Project assessment and approvals under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)<sup id="cite_ref-25" class="reference"><a href="#cite_note-25"><span class="cite-bracket">[</span>25<span class="cite-bracket">]</span></a></sup> </td></tr></tbody></table> <table class="wikitable"> <caption>State </caption> <tbody><tr> <th>Department / agency</th> <th>Role </th></tr> <tr> <td><a href="/wiki/Department_of_Mines_%26_Petroleum" class="mw-redirect" title="Department of Mines & Petroleum">Department of Mines & Petroleum</a></td> <td>Main state agency; facilitates state economic development and growth; exploration leases, production and pipeline licences<sup id="cite_ref-26" class="reference"><a href="#cite_note-26"><span class="cite-bracket">[</span>26<span class="cite-bracket">]</span></a></sup> </td></tr> <tr> <td>Economic Regulation Authority</td> <td>Regulates monopoly aspects of the petroleum industry<sup id="cite_ref-27" class="reference"><a href="#cite_note-27"><span class="cite-bracket">[</span>27<span class="cite-bracket">]</span></a></sup> </td></tr> <tr> <td>Environmental Protection Authority</td> <td>Advice to the Env. Minister; preparation of environmental protection policies; assessment of proposals and management plans<sup id="cite_ref-28" class="reference"><a href="#cite_note-28"><span class="cite-bracket">[</span>28<span class="cite-bracket">]</span></a></sup> </td></tr> <tr> <td>Office of Energy</td> <td>Regulatory policy and structures for energy infrastructure<sup id="cite_ref-29" class="reference"><a href="#cite_note-29"><span class="cite-bracket">[</span>29<span class="cite-bracket">]</span></a></sup> </td></tr> </tbody></table> <div class="mw-heading mw-heading3"><h3 id="Production_facilities">Production facilities</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=9" title="Edit section: Production facilities"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:2007_Resource_production_WA-svg.svg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/9/92/2007_Resource_production_WA-svg.svg/220px-2007_Resource_production_WA-svg.svg.png" decoding="async" width="220" height="138" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/9/92/2007_Resource_production_WA-svg.svg/330px-2007_Resource_production_WA-svg.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/9/92/2007_Resource_production_WA-svg.svg/440px-2007_Resource_production_WA-svg.svg.png 2x" data-file-width="1275" data-file-height="800" /></a><figcaption></figcaption></figure> <p>Production refers to the process of extracting the hydrocarbons from existing wells, along with initial separation of the wellstream components (which typically include varying proportions of crude oil, natural gas, and water), prior to transportation to end-use markets or further processing and refining. Most of the state's petroleum production occurs at offshore production platforms, although many wells are situated on the mainland and on several islands off the coast such as <a href="/wiki/Thevenard_Island" title="Thevenard Island">Thevenard Island</a> and at <a href="/wiki/Barrow_Island_(Western_Australia)" title="Barrow Island (Western Australia)">Barrow Island</a> where commercial oil production in WA commenced in 1964. WA's largest production platforms are North Rankin A and Goodwyn A - both operated by <a href="/wiki/Woodside_Energy" title="Woodside Energy">Woodside Energy</a> - located approximately 130 km west of Dampier, where the ocean depth is about 100 m.<sup id="cite_ref-PWA2008_9-2" class="reference"><a href="#cite_note-PWA2008-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Transportation">Transportation</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=10" title="Edit section: Transportation"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <figure class="mw-default-size" typeof="mw:File/Thumb"><a href="/wiki/File:WA_gas_pipelines2008.png" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/4/48/WA_gas_pipelines2008.png/220px-WA_gas_pipelines2008.png" decoding="async" width="220" height="337" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/4/48/WA_gas_pipelines2008.png/330px-WA_gas_pipelines2008.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/4/48/WA_gas_pipelines2008.png/440px-WA_gas_pipelines2008.png 2x" data-file-width="652" data-file-height="998" /></a><figcaption>Locations of main gas pipelines in WA</figcaption></figure> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/List_of_natural_gas_pipelines_in_Western_Australia" title="List of natural gas pipelines in Western Australia">List of natural gas pipelines in Western Australia</a></div> <p>There are currently four major natural gas transmission pipelines supplying the Western Australian gas market:<sup id="cite_ref-30" class="reference"><a href="#cite_note-30"><span class="cite-bracket">[</span>30<span class="cite-bracket">]</span></a></sup> </p> <ul><li><a href="/wiki/Dampier_to_Bunbury_Natural_Gas_Pipeline" title="Dampier to Bunbury Natural Gas Pipeline">Dampier to Bunbury Natural Gas Pipeline</a> (DBNGP), which transports gas from the North West Shelf area to customers in the <a href="/wiki/Geraldton" title="Geraldton">Geraldton</a>, <a href="/wiki/Perth" title="Perth">Perth</a>, <a href="/wiki/Mandurah" title="Mandurah">Mandurah</a> and <a href="/wiki/Bunbury,_Western_Australia" title="Bunbury, Western Australia">Bunbury</a> areas;</li> <li>Goldfields Gas Pipeline (GGP), taking gas from <a href="/wiki/Varanus_Island" title="Varanus Island">Varanus Island</a> to the Goldfields;</li> <li>Parmelia Pipeline, taking gas from various fields in the Perth Basin to customers in the State's South West; and</li> <li>Pilbara Energy Pipeline - from <a href="/wiki/Dampier,_Western_Australia" title="Dampier, Western Australia">Dampier</a> to <a href="/wiki/Port_Hedland" class="mw-redirect" title="Port Hedland">Port Hedland</a>.</li></ul> <div class="mw-heading mw-heading3"><h3 id="Refining">Refining</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=11" title="Edit section: Refining"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Refining refers to the transformation of crude oil and condensate into end-use petroleum products. The state's only oil refinery, owned and operated by <a href="/wiki/BP" title="BP">BP</a>, was located at <a href="/wiki/City_of_Kwinana" title="City of Kwinana">Kwinana</a>, and was commissioned in 1955, but closed in 2021.<sup id="cite_ref-ABARE2008_3-4" class="reference"><a href="#cite_note-ABARE2008-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> With a production capacity of 132,050 bbl/d (20,994 m<sup>3</sup>/d), it was the largest of Australia's seven refineries, accounting for almost 20% of national refining capacity.<sup id="cite_ref-EIAaus_14-3" class="reference"><a href="#cite_note-EIAaus-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> As most of the crude oil and condensate produced in WA is exported to Asia by <a href="/wiki/Oil_tanker" title="Oil tanker">ship</a>, the Kwinana refinery relied mainly on shipments of crude oil from elsewhere in Australia and overseas. For many years, a small amount of crude oil has arrived for processing at the refinery via road tanker, having been produced at onshore wells near <a href="/wiki/Dongara" class="mw-redirect" title="Dongara">Dongara</a> since the late 1960s. </p><p>The quantity of Perth basin oil production rose substantially in 2001 when the Cliff Head field (10 km off the coast near Dongara in 15 m of water) was brought into production.,<sup id="cite_ref-31" class="reference"><a href="#cite_note-31"><span class="cite-bracket">[</span>31<span class="cite-bracket">]</span></a></sup> about 320 km north of <a href="/wiki/Perth,_Western_Australia" class="mw-redirect" title="Perth, Western Australia">Perth</a>. The refinery mostly produced petrol and diesel, along with jet fuel, bitumen and liquid petroleum gas (LPG).<sup id="cite_ref-DownstreamReport_2-1" class="reference"><a href="#cite_note-DownstreamReport-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> Australia's refineries have experienced declining gross margins for several years, mainly due to competition from foreign refineries, an oversupply of refining capacity in Asia, and the high cost of transporting crude oil to Australia.<sup id="cite_ref-EIAaus_14-4" class="reference"><a href="#cite_note-EIAaus-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Issues">Issues</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=12" title="Edit section: Issues"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading3"><h3 id="Supply_disruption">Supply disruption</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=13" title="Edit section: Supply disruption"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/2008_Western_Australian_gas_crisis" title="2008 Western Australian gas crisis">2008 Western Australian gas crisis</a></div> <p>The state's heavy reliance on gas from the north west has become a prominent public issue on several occasions when disruptions to supply has occurred. On 18 February 2004, <a href="/wiki/Western_Power_Corporation" title="Western Power Corporation">Western Power</a> (electricity provider) imposed compulsory restrictions on power usage in Perth. This occurred on a day when the temperature was expected to reach nearly 42 °C and the company was unable to use its 'peakload' gas-fired power stations because of maintenance being carried out on the <a href="/wiki/Dampier_to_Bunbury_Natural_Gas_Pipeline" title="Dampier to Bunbury Natural Gas Pipeline">main pipeline</a> from the north-west.<sup id="cite_ref-32" class="reference"><a href="#cite_note-32"><span class="cite-bracket">[</span>32<span class="cite-bracket">]</span></a></sup> </p><p>On 2 January 2008, an electrical fault resulted in a production shutdown at the North West Shelf Venture's Karratha Gas Plant. Production resumed on 4 January and normal gas supplies was re-established by 6 January 2008. It was a complete shutdown affecting both LNG exports and domestic gas production. Domestic gas supplies were cut by 2/3.<sup id="cite_ref-33" class="reference"><a href="#cite_note-33"><span class="cite-bracket">[</span>33<span class="cite-bracket">]</span></a></sup> </p><p>The most serious and significant disruption occurred in June 2008, when a pipeline rupture and explosion at the Varanus Island facility caused a 3-month shutdown of the plant, reducing the state's supply of natural gas by one-third.<sup id="cite_ref-34" class="reference"><a href="#cite_note-34"><span class="cite-bracket">[</span>34<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Domestic_gas_reservation_policy">Domestic gas reservation policy</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=14" title="Edit section: Domestic gas reservation policy"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In 2006, the state government announced a policy requiring that future developers of export gas projects set aside 15% of the reserves in each gas field for domestic use within the state.<sup id="cite_ref-35" class="reference"><a href="#cite_note-35"><span class="cite-bracket">[</span>35<span class="cite-bracket">]</span></a></sup> This policy replicated the initial State Agreement for the North West Shelf Project, and was based on a perceived decline in the availability of gas from non-export developments. For developers of large export projects, LNG exports generally offer higher returns than sales of gas into the domestic market.<sup id="cite_ref-MMMA_JWGreport_17-1" class="reference"><a href="#cite_note-MMMA_JWGreport-17"><span class="cite-bracket">[</span>17<span class="cite-bracket">]</span></a></sup> A federal parliamentary report referred to the state policy, stating that "while Western Australia presently consumes about 35% of Australia's domestic gas use, and the bulk of LNG exports, there is still a very healthy <a href="/wiki/Reserves-to-production_ratio" title="Reserves-to-production ratio">reserves-to-production ratio</a> in excess of 100 years.<sup id="cite_ref-36" class="reference"><a href="#cite_note-36"><span class="cite-bracket">[</span>36<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Garnaut_Climate_Change_Review">Garnaut Climate Change Review</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=15" title="Edit section: Garnaut Climate Change Review"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Australia's ratification of the Kyoto Protocol treaty in March 2008 is likely to increase the country's use of natural gas to displace more carbon-dioxide-intensive coal.<sup id="cite_ref-37" class="reference"><a href="#cite_note-37"><span class="cite-bracket">[</span>37<span class="cite-bracket">]</span></a></sup> The first draft report of the <a href="/wiki/Garnaut_Climate_Change_Review" title="Garnaut Climate Change Review">Garnaut Climate Change Review</a> (released on 4 July 2008), which identified the impacts of <a href="/wiki/Climate_change" title="Climate change">climate change</a> on Australia and proposed numerous public policy measures designed to mitigate these effects, may have a significant impact on aspects of the industry. Among the measures proposed was an <a href="/wiki/Emissions_trading" title="Emissions trading">emissions trading</a> scheme "which will make higher-emissions forms of energy generation more expensive, shifting demand towards lower-emissions sources, and towards technologies that capture and sequester emissions...and in transport, an <a href="/wiki/Emissions_trading_scheme" class="mw-redirect" title="Emissions trading scheme">emissions trading scheme</a> will make higher-emissions forms of transport more expensive, shifting demand to lower-emissions forms"<sup id="cite_ref-GarnautReport_38-0" class="reference"><a href="#cite_note-GarnautReport-38"><span class="cite-bracket">[</span>38<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Security">Security</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=16" title="Edit section: Security"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The Australian Strategic Policy Institute has identified petroleum facilities in Western Australia, including offshore platforms, ports, processing plants and pipelines, as potential targets of military or terrorist attack. Offshore structures and floating production and storage vessels have few defences against attack. In a 2005 report on maritime security threats, the Institute noted that in Australian petroleum production from onshore to offshore and from Bass Strait to the Northwest Shelf posed increasing risks for the Western Australian petroleum industry.<sup id="cite_ref-39" class="reference"><a href="#cite_note-39"><span class="cite-bracket">[</span>39<span class="cite-bracket">]</span></a></sup> In December 2004 the Australian Government announced a program of augmented security patrols in the Northwest Shelf area. </p> <div class="mw-heading mw-heading2"><h2 id="Further_reading">Further reading</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=17" title="Edit section: Further reading"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li>Regularly updated the <a href="/wiki/Western_Australia_Atlas_of_mineral_deposits_and_petroleum_fields" title="Western Australia Atlas of mineral deposits and petroleum fields">Western Australia Atlas of mineral deposits and petroleum fields</a> publication of the <a href="/wiki/Geological_Survey_of_Western_Australia" title="Geological Survey of Western Australia">Geological Survey of Western Australia</a> provides graphical and indexed material relating to the petroleum fields and their developments.</li></ul> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Petroleum_industry_in_Western_Australia&action=edit&section=18" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist reflist-columns references-column-width" style="column-width: 30em;"> <ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://web.archive.org/web/20080719113945/http://www.appea.com.au/index.php?option=com_content&task=blogsection&id=7&Itemid=32">"2007 Production Statistics"</a>. <a href="/wiki/Australian_Petroleum_Production_and_Exploration_Association" class="mw-redirect" title="Australian Petroleum Production and Exploration Association">Australian Petroleum Production and Exploration Association</a> (APPEA). 24 April 2008. 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