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

The Coal Seam Gas Extraction industry has experienced significant volatility 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 over $60 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. The world's first LNG produced from CSG was exported by Queensland Curtis LNG in late December 2014.Large-scale CSG reserves in the Bowen Basin and the Surat Basin in Queensland have been developed in tandem with these export facilities...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
-4.6%
Forecast Growth 18-23
x.x%lock
Profit
x.x%lock
Employment
3,483
Businesses
7
Market Share of Companies

Industry Threats & Opportunities

  • Industry revenue has declined due to a massive drop in the world price of natural gas
  • Profitability has declined due to a fall in the world natural gas price
  • Rising CSG extraction volumes and slightly higher natural gas prices will underpin growth

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    Industry Report - Industry SWOT Analysis Chapter

    The Coal Seam Gas Extraction industry is in the mature stage of its economic life cycle. The exploration and production of CSG began in Australia in 1996, and the industry has since rapidly expanded. Technological advancements in the industry and downstream industries, including new drilling methods, and LNG processing and exporting technology, have contributed to growth. Massive investment in developing CSG wells, coupled with downstream LNG processing trains, has underpinned the industry's strong growth.Industry value added (IVA) is used to measure an industry's contribution to the overall economy. IVA is forecast to marginally grow at an annualised rate of less than 0.1% over the 10 years through 2022-23. IVA is expected to underperform annualised GDP growth of 2.5% o...purchase to read more.

    Additional Insights for the Coal Seam Gas Extraction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Coal Seam Gas Extraction Industry 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

    Industry Products

    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 from large-scale establishments
  • Coal seam gas from small-scale establishments
    • Industry Activities
  • Natural gas extraction from coal seams
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    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

    • Products & Markets

    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 from large-scale establishments
  • Coal seam gas from small-scale establishments
  • Chart: Coal Seam Gas Extraction Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Fossil fuel generators
  • LNG processors
  • Industrial users
  • Households and businesses
  • Chart: Major Market Segmentation for the Coal Seam Gas Extraction Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    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

    Major Companies

    QGC Upstream Investments Pty Ltd, Origin Energy Limited, Arrow Energy Holdings Pty Ltd, Australia Pacific LNG Pty Limited, Santos Ltd,
  • Table: QGC Upstream Investments Pty Ltd - financial performance
  • Table: Origin Energy Limited - financial performance
  • Table: Arrow Energy Holdings Pty Ltd - financial performance
  • Table: Australia Pacific LNG Pty Limited - financial performance
  • Table: Santos Ltd - financial performance

    • Operating Conditions

    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

    Key Statistics

    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

    Jargon & Glossary

    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 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:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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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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