Hot air: A fall in the world gas price has caused revenue to plummet, despite rising production

The Coal Seam Gas Extraction industry has been significantly volatile over the past five years. Technological developments have reduced the cost of exporting natural gas as LNG, and encouraged investment in export facilities and new gas fields in Queensland. Three international consortiums have invested $69.7 billion in constructing three gas liquefaction and export facilities on Curtis Island near Gladstone, QLD, and in associated gas wells and pipelines throughout the state. Queensland Curtis LNG exported the world's first LNG produced from CSG in late December 2014, with five other LNG export trains becoming operational over the three years through 2016-17...read more.

Industry Statistics & Market Size
Revenue
$12bn
Annual Growth 13-18
30.9%
Forecast Growth 18-23
Profit
Employment
4,167
Businesses
6

Industry Threats & Opportunities

  • Industry revenue has increased due to the completion of three mega LNG projects in Queensland
  • Profitability has returned after previous losses between 2011-12 and 2015-16
  • Rising CSG extraction volumes and slightly higher natural gas prices will underpin growth
  • Industry Report - Industry Investment Chapter

    The Coal Seam Gas Extraction industry exhibits high capital intensity. In 2017-18, for every dollar spent on wages, an estimated $14.67 will be invested in capital expenditure. Capitalised well drilling and exploration costs are extensive, while industry players are also required to invest in a range of capital-intensive machinery and equipment.Although the amount of labour tends to decrease once gas extraction begins, companies in the industry still require a sizeable workforce to extract CSG. Industry participants often contract out particular parts of their operations to reduce their permanent employee base, which slightly overstates the industry's capital intensity level. Over the past five years, the industry's capital intensity has increased significantly...purchase to read more.

    Additional Insights for the Coal Seam Gas Extraction Industry

    IBISWorld has determined the most important Key Success Factors for the Coal Seam Gas Extraction are:

  • Downstream ownership links
  • Ability to accommodate environmental requirements
  • Access to high quality inputs
  • IBISWorld analysts also discuss how external factors such as Demand from gas supply and World price of natural gas in the Coal Seam Gas Extraction industry impact industry performance..

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    What's in this report

    What is the Coal Seam Gas Extraction Industry?

    Companies in the industry extract natural gas from coal seams. Coal seam gas (CSG) extraction involves non-convectional techniques such as hydraulic fracturing, which is also known as fracking. Exploration, well drilling, and natural gas processing and transmission beyond the wellhead are not included in the industry.

    Industry Products
  • Coal seam gas
  • Industry Activities
  • Natural gas extraction from coal seams
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from gas supply
  • World price of natural gas
  • Demand from fossil fuel electricity generation
  • US dollars per Australian dollar
  • Net energy consumption

  • Current Performance
  • Production and LNG processing
  • Domestic trends
  • International gas demand
  • Chart: Revenue Growth

  • Industry Outlook
  • Imminent regulation change
  • International demand and prices
  • Downstream processors and structural changes
  • Table: Coal Seam Gas Extraction Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Oil and Gas Extraction
  • Gas Supply
  • Fossil Fuel Electricity Generation

  • Key Selling Industries
  • Construction Machinery and Operator Hire
  • Contract Mining Services
  • Mining Support Services

  • Products & Services
  • Coal seam gas
  • Chart: Coal Seam Gas Extraction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • LNG export terminals
  • Domestic gas refineries
  • Chart: Major Market Segmentation for the Coal Seam Gas Extraction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Coal Seam Gas Extraction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Coal Seam Gas Extraction Industry

  • Industry Globalization
    Australia Pacific LNG Pty Limited, Santos Ltd, QGC Upstream Investments Pty Ltd,
  • Table: Australia Pacific LNG Pty Limited - financial performance
  • Table: Santos Ltd - financial performance
  • Table: QGC Upstream Investments Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Coal Seam 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 Coal Seam Gas Extraction Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Liquefied Natural Gas (Lng)
  • Gas that has been compressed into liquid form so it can be transported by sea.
  • Lng Train
  • An LNG train is a liquefied natural gas plant's liquefaction and purification facility.
  • Natural Gas
  • Naturally occurring gases consist primarily of methane, but also including small amounts of heavier hydrocarbons such as propane and butane.
  • Wellhead Value
  • The price of a unit of gas at the point of extraction, before transport costs. The wellhead value is used to calculate royalties.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Coal Seam Gas Extraction market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
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    This report on Coal Seam 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 Coal Seam 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 Coal Seam 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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