Successful extraction: A strong increase in production volumes has offset falling prices

The Oil and Gas Extraction industry has had significant revenue growth over the past five years, despite exhibiting high volatility. Changes in oil and gas prices, exchange rate movements, domestic and export demand for oil and gas, and annual production volumes all influence the industry’s performance. Industry output has expanded over the past five years, while world oil and natural gas prices have declined. Australian natural gas production, which makes up most of the industry, is expected to increase at an annualised 16.3% over the five years through 2018-19. Although the world price of natural gas has fallen over the past five years, industry revenue is expected to grow at an annualised 12.3% over the five years through 2018-19 due to production more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Industry output has expanded while world oil and natural gas prices have declined
  • Industry revenue has grown due to higher volumes offsetting pricing falls for oil and gas
  • Profit is expected to remain high due to strong global demand for Australian LNG
  • Industry Report - Industry Locations Chapter

    The geographic distribution of the industry is determined by the location of known oil and gas fields. The industry's focus shifted heavily towards Western Australia when large offshore gas and oil fields were developed in the 1980s. Today, Western Australia is projected to account for over two-thirds of industry revenue and over 40% all firms in the industry. Production from these ventures continues to dominate the industry. Oil and gas production is undertaken at several onshore and offshore basins (oil and gas deposits). The major producing offshore basins comprise Gippsland, Carnarvon and Bonaparte, while onshore production occurs in the Bowen/Surat, Cooper/Eromanga, Perth, Canning, Amadeus and Otway basins...purchase to read more.

    Additional Insights for the Oil and Gas Extraction Industry

    IBISWorld has determined the most important Key Success Factors for the Oil and Gas Extraction are:

  • Output is sold under contract - incorporate long-term sales contracts
  • Downstream ownership links
  • Availability of resource
  • IBISWorld analysts also discuss how external factors such as Export price of liquefied natural gas and World price of crude oil in the Oil and Gas Extraction industry impact industry performance..

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    What's in this report

    What is the Oil and Gas Extraction Industry?

    Industry firms mainly produce crude oil, natural gas or condensate by extracting oil and gas deposits. These companies may also treat natural gas to produce purified natural gas or liquefied hydrocarbon gases, or operate natural gas absorption or separation plants. Some industry firms also produce liquefied natural gas and liquefied petroleum gas.

    Industry Products
  • Crude oil and condensate
  • Liquefied petroleum gas
  • Coal seam gas
  • Traditional natural gas
  • Industry Activities
  • Crude oil mining
  • Oil shale mining
  • Natural gas extraction
  • Petroleum gas extraction
  • Coal seam gas mining
  • Liquefied natural gas (LNG) production
  • Liquefied petroleum gas (LPG) production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Export price of liquefied natural gas
  • World price of crude oil
  • Demand from gas supply
  • US dollars per Australian dollar
  • Demand from petroleum exploration

  • Current Performance
  • Revenue and profit
  • Strong LNG

    output growth

  • Unconventional resources
  • Oil production

    and imports

  • Chart: Revenue Growth

  • Industry Outlook
  • World prices

    and profit

  • LNG export growth
  • Industry challenges
  • Table: Oil and Gas Extraction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Oil and Gas Extraction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Petroleum Refining and Petroleum Fuel Manufacturing
  • Gas Supply
  • Fossil Fuel Electricity Generation

  • Key Selling Industries
  • Mining Support Services
  • Petroleum Exploration
  • Pipeline Transport

  • Products & Services
  • Traditional natural gas
  • Coal seam gas
  • Crude oil and condensate
  • Liquefied petroleum gas
  • Chart: Oil and Gas Extraction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • LNG export markets
  • Domestic gas industries
  • Crude oil export markets
  • Domestic petroleum refineries
  • LPG export markets
  • Domestic LPG markets
  • Chart: Major Market Segmentation for the Oil and Gas Extraction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Depreciation
  • Purchases
  • Wages
  • Royalties
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Oil and Gas Extraction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil and Gas Extraction Industry

  • Industry Globalization
    Chevron Australia Holdings Pty Ltd, Woodside Petroleum Ltd, Shell Energy Holdings Australia Limited, BHP Group Limited, ExxonMobil Australia Pty Ltd, Santos Ltd,
  • Table: Chevron Australia Holdings Pty Ltd - financial performance
  • Table: Woodside Petroleum Ltd - financial performance
  • Table: Shell Energy Holdings Australia Limited - financial performance
  • Table: BHP Group Limited - financial performance
  • Table: ExxonMobil Australia Pty Ltd - financial performance
  • Table: Santos Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Oil and Gas Extraction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Oil and Gas Extraction Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A type of light crude oil that forms into a liquid from its gas state after being released from high-pressure wells.
  • Fracking
  • A method used to extract oil and gas from shale rock by pumping pressurised water into drilled wells.
  • Liquefied Natural Gas (Lng)
  • Formed by cooling natural gas to a low temperature, at which point it becomes liquid.
  • Liquefied Petroleum Gas (Lpg)
  • Consists of naturally occurring propane and other gas kept under pressure to maintain it in a liquid state.
  • Mega-Project
  • LNG infrastructure project with a net value in excess of $5 billion dollars.
  • Oilfield
  • An underground or undersea deposit of oil contained in a stable geological formation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Oil and Gas Extraction market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
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    This report on Oil and Gas Extraction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Oil and Gas Extraction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Oil and Gas Extraction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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