Australian crude output keeps falling

Australian crude production of 113,000 b/d fell to its lowest level in more than 35 years in the 2018-19 fiscal year to 30 June, down by 16pc from the previous low of 134,000 b/d the previous year, while condensate output reached a record high.

Australian crude production has been steadily falling since reaching a peak of 563,000 b/d in 2000-01. But condensate output has largely been on the rise since with most of the condensate output associated with LNG projects offshore Australia.

Condensate output averaged 203,000 b/d in 2019-20, up by 53pc from 132,000 b/d in 2017-18 and above the previous peak condensate output of 153,000 b/d in 2009-10, according to the Australian Petroleum Statistics (APS) for June. The combined oil and condensate production was 316,000 b/d in 2018-19 from 266,000 b/d in 2017-18. The APS data only goes back to 1982-83.

The rise in condensate production coincided with record Australian LNG exports of 74.9mn t in 2018-19 from 61.7mn t in 2017-18.

Australian crude production may rebound during 2019-20 with the start-up of the Greater Enfield field in the Carnarvon basin offshore Western Australia and operated by Australian independent Woodside Petroleum. Greater Enfield is expected to produce 40,000 b/d at its peak.

The decline in Australian crude production comes as domestic consumption of oil products continues to rise, with total consumption averaging 1.05mn b/d in 2018-19 from 1.04mn b/d in 2017-18. Around 65pc of Australia's petroleum product sales were diesel, followed by gasoline with 39pc and jet fuel with 20pc.

The rise in the combined crude and condensate output in 2018-19 led to a slightly fall in crude and other refinery feedstocks to 373,000 b/d in 2018-19 from 386,000 b/d in 2017-18. There was also a slight fall in products in 2018-19 to 623,000 b/d from 626,000 b/d in 2017-18.

Products accounted for 63pc of all imports in 2018-19 from 62pc a year earlier, with crude was 37.5pc and below the 38.1pc in 2017-18.

Diesel accounted for 57pc of all product imports in 2018-19 from 55pc in 2017-18, while gasoline represented 17pc in 2018-19 and 18pc in 2017-18.