Lecture 5.5

1
CRICOS Provider No. 00126G copyright © The University of Western Australia
BL Oil & Gas History, Economics and Geopolitics OENA8433

Lecture 5.5: Western Australian Oil and Gas – WAPET
Dr. Karin Oerlemans
1
Unit Overview
Topic 1: Introduction – The Founders
Topic 2: The Global Struggle
Topic 3: War and Strategy
Topic 4: Oil and Gas Economics
Topic 5: Oil and Gas Technology in context
Lecture 1: Technological History of the Oil & Gas Industry
Lecture 2: Brown & Root
Lecture 3: North Sea Oil – a study of technology in action
Lecture 4: The Middle East – a Geopolitical case study
Lecture 5: Western Australian Oil and Gas – WAPET
Topic 6: The Energy Industry Today
3
Lecture Outcomes
Upon successful completion of these two lectures you should be
able to:
Develop an understanding of the current status of the oil and
gas industry and the future trends
Have an appreciation of the first exploration of oil in Australia
and describe some of the major projects
Gain an deeper understanding of oil and gas technological
change in context
Gain an awareness of the economic impact of major projects
on Australia
4
2
Recommended Reading
Wilkinson, R. (1991). Where God never trod: Australia’s oil
explorers across two centuries. Balmain, NSW: David Ell Press.
Oil & Gas Industry profile: Australia, (2008).
www.datamonitor.com
http://www.gorgon.com.au/01gp_factsheets.html
http://www.dmp.wa.gov.au
http://www.woodside.com.au/
http://www.helixesg.com/EnergyServices/WellOps/WellOpsSEAPtyL
td/Equipment/tabid/227/Default.aspx
http://www.rigzone.com/news/article
Petroleum Western Australia, September, 2008
http://www.appea.com.au/History/
5
Australia’s oil and gas basins and

gas pipeline networks
Source: Parliament of Australia, Parliamentary Library, 2008
6
3
Currently
Market Value
The Australian oil and gas market grew by 13% in 2007 to reach a value of
$31.1 billion
Market Value Forecast
In 2012, the Australian oil and gas market is forecast to have a value of
$60.4 billion, an increase of 94.3% since 2007
Market Volume
The Australian oil and gas market grew by 1.6% in 2007 to reach a volume
of 521 million boe
Market Volume Forecast
In 2012, the Australian oil and gas market is forecast to have a volume of
547.4 million boe, an increase of 5.1% since 2007
Photos courtesy JCW, WAPET retiree

Oil flows at Rough Range 1955
7
Currently
Market Segmentation I
Sales of oil generate 83% of the Australian oil and gas market's revenues
Market Segmentation II
Australia generates 5.2% of the Asia-Pacific oil and gas market's revenues
China forms the largest oil and gas market in Asia - Pacific, generating 35.2% of the
regional market's value
About 69 per cent of Australia’s natural gas production and 70 per cent of crude oil
and condensate production are located in Western Australia
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4
WA Issues
North West area is cyclone-prone hence small number of large and
expensive large projects which creates problems for the
establishment of local supply companies
Local suppliers want to see investment and employment benefits from

regional developments
State governments wish to see the benefits flowing within their State
Governments and petroleum companies have adopted local content

policies which provide equal opportunity to Australian suppliers

The taking of Exmouth 1952 9
Governments & Legislation

1926 Australian Government passes Petroleum prospection Act
providing pound for pound subsidies (up to £60 000) for oil
exploration
1927 Petroleum Prospecting Act extended to Papua New

Guinea and increased to £120 000
1928 Geophysical Survey Act passed by government to prompt

surveys in Australia for oil, minerals and water
1931 Commonwealth Government imposes four pence per

gallon excise duty on refined gasoline
1936 Petroleum Oil Search Act passed with £250 000 available
to encourage drilling operations
10
5
1946 Australian Government forms bureau of Mineral
Resources Geology and Geophysics (BMR). Harold Raggatt
appointed first director
1957 Petroleum Search Subsidy legislation passed, broadened

in 1959 to include seismic and other survey work. Terminated
in 1973
1968 Joint Federal-State legislations for jurisdiction of

continental shelf regions
1974 Barrier Reef Royal Commission report bans further

drilling on Great Barrier Reef, Queensland
1975 Federal Government introduces world parity pricing for

Australian crude oil
11

1985 Resource Rent Tax introduced to offshore ‘greenfield’
areas
1989 review of oil taxation
1990 extends RRT regime to all Bass Strait oil and gas production
with effect from July, extends RRT deductibility to all offshore areas
within the regime
1998 Changes to Petroleum Resource Rent Tax (PRRT) to address
uncertainties in taxation of integrated gas to liquids projects such as
LNG
1998 Federal Government

Proclaims 1.7 million hectare Great Australian Bight multiple use
marine park
Releases National Greenhouse Strategy
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6
2005
Federal Parliament creates National Offshore Petroleum Safety
Authority
West Australian Government creates two new marine parks in the
Montebello-Barrow Island region off Western Australia
The Western Australian Government becomes the first government
in Australia to create a legislatively-backed carbon trading scheme
using revegetation to offset carbon dioxide emissions
2006 Federal Government

New legislation to make all gas and other energy sources imported
into Australia via pipelines subject to GST. This will affect PNG –Qld
gas project
$100 million earmarked for development of projects to reduce
Greenhouse gas emissions, 25% of the funds to go to renewable
energy projects
13

ALP 2008
The PSLA (Petroleum Submerged Lands Act) has been
rewritten as Offshore Petroleum Act 2006 (the OPA), related
Acts will come into effect during 2008, PSLA will be repealed
Department will implement the consolidated regulations by the

end of 2008-09 covering:
Exploration
Offshore Petroleum Development
Occupational Health & Safety
Environmental Issues (Carbon Capture and Storage)
Fees and taxation
14
7
History
First Surface Seeps
Similar to the American oil industry discoveries
1802 French world scientific expedition finds oil shale in New South
Wales near Blue Mountains – used as blocks for fuel
1800 Sealers and Whalers use bitumen stranded along Australia’s

southern beaches (Victoria) to caulk boats and floor huts
1839 John Lort Stokes of HMS Beagle finds bitumen in water wells
sunk on banks of Victoria River, Northern Territory
1866 West Australian bituminous resins on display in Paris

Universal Exhibition
15
History
1800s
1865 Rev. J.T. Woods publishes History of Discovery and Exploration
of Australia in two volumes
1865 J. Graham Sets up Pioneer Kerosene Works at Port Kembla, New

South Wales, using oil shale from America Creek
1866 Australia’s first oil exploration well drilled at Salt Creek in the
Coorong district of South Australia
Tonne sample to Scotland for analysis shows petroleum content
1860s First petroleum import from America
Dongara, WA. Photo: K. Oerlemans 16

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History
Early 1900s
1902 First exploration drilling for oil in Western Australia at Warren River in
south west of state
1906 Roma, Qld – lit for 10 days by natural gas
1915 First recorded Tasmanian exploration drilling on Bruny island
1920 Australian Government offers £50 000 reward for discovery of commercial
oil
1924 Australia’s first oil discovery (as opposed to condensate and oil traces) at
Lake Bunga No.1 well near Lakes Entrance, Victoria
1930 41,107,000 gallons [486 422 L] of oil produced from Lakes Entrance
region, Victoria. Most sold to Melbourne and Metropolitan Tramways Board for
lubricating suburban trams
1940s War interrupts oil exploration

The first rig convoy from Fremantle to Learmonth May 1954
17
Early Oil Companies

Australasian Petroleum Company (APC)
1938 formed by BP, Mobil and Oil Search,
1959 finds oil Papua New Guinea
Bitumen and Oil Refineries (Australia) Ltd incorporation in 1946. Later known
as Boral
1950s expands into the production and marketing of LP Gas
1970s 85% interest in Oil Company of Australia
1998 Otway Basin two new large oil & gas fields - Thylacine and Geographe
2000 became Origen Energy
2004 SEA Gas Pipeline completed linking Victorian and South Australia
Frome-Broken Hill
1947
Joint venture of Esso, Mobil, BP and the Zinc Corporation set up to explore the Frome
Embayment in South Australia/western New South Wales
Conducts first commercial post-war oil surveys in Canning Basin of Western Australia
1959 tests significant gas flow in Port Campbell No.1 well, Victorian Otway basin
1947 Ampol secures its first oil exploration permits, Exmouth region,
Carnarvon Basin, Western Australia
Source: www.seagas.com.au/ for_schools.htm 18

9
Major Multinationals – BP in Australia
APOC (Anglo-Persian Oil Company) bought BP
in 1917
1920 Australian and British Governments begin
joint exploration of Papua and New Guinea using
BP as exploration agent – British Government
withdraws 1922 leaving Australian Government
and BP to continue work
Refinery
1920 Build first at Laverton in Victoria
1938 Australasian Petroleum Company (APC)
formed by BP, Mobil and Oil Search
APOC and Australian Government jointly establish
the Commonwealth Oil Refineries (COR)
1938 refinery in Fremantle, Western Australia
Kwinana Oil Refinery, 1978
Source:http://nla.gov.au/nla.pic-
1952 name changed to BP and bought out COR
an23197891 1955 Laverton closed and Kwinana opened –
largest in Australia
1957 refineries became BP Australia Ltd
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Major Multinationals – BP in Australia

1962 joint venture North West Shelf
$14 billion
Mid 90’s onwards – a shift towards environmentally friendly
products at the refineries
1999 a $250 million investment made at the refinery at Bulwer
Island to allow production of low sulphur, low benzene fuels
2000 $60 million Clean Diesel project at Kwinana to reduce
emissions and to provide the capacity to produce clean fuels with
low sulphur and low benzene content
Caltex and BP propose a merger of their four Australian
refining interests. (Negotiations on the deal were discontinued
early in 1999).
BP opens $6.4 million 15,000 b/d crude oil unloading facility at
Kwinana refinery in Western Australia to handle oil from the
offshore Perth Basin Cliff Head oil field from the end of March
2006.
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10
Major Multinationals – Shell in Australia
1901 Shell ship Turbo arrives on 3 June with the first cargo of
bulk kerosene (Rising Sun brand of Russian origin) ever to
reach Australia
1905 The Shell Transport and Trading Company and the Royal
Dutch Petroleum Company establish the British Imperial Oil
Company Ltd established in Australia as a joint venture
1927 The British Imperial Oil Company Ltd becomes The Shell
Company of Australia Limited
21
Major Multinationals – Shell in Australia

1916 Famous 'Bowser' kerbside pump introduced
1926 installs hundreds of company-owned kerbside
pumps and leases them to dealers for a low deposit
and rental
1976 Shell leads the industry in Australia into
electronic self-serve pumps
1986 Shell introduces unleaded petrol: Shell Ultra –
in 1987 introduces Shell Formula Diesel
2002 Coles Myer supermarket chain signs deal with
Shell Australia to operate Shell’s retail petrol outlets
1968 Lady Casey, wife of the Governor-General, launches Shell's first

Australian-built tanker, the 24,700 dwt Cellana. Shell commissions Australia's
first turbine oil plant at Shell's Newport terminal
Cultural investments include the early Australian film industry, the Aria
Awards, major art exhibitions and the Beatles
22
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Major Multinationals – Shell exploration in Australia
1939 Shell Development Australia (SDA) receives its first Australian
exploration concession, but suspends exploration in 1943 to resume
again after the war
1939 — 51 Shell conducts largest coordinated exploration effort in
Australia costing £1 million
1963 joins Woodside and Burmah oil to explore NWS Project
1960s-80s explores Maryborough, Sydney basin, Otway Basin, Arafura
Sea, Bass Strait, Great Australian Bight, Canning Basin
1971 The first big discovery of North West Shelf gas made at North
Rankin
1986 Esso/BHP/Shell group finds Kipper gas field, Gippsland Basin,
Victoria
1996 Shell finds Cornea oil field in Browse Basin off Western Australia
– strikes oil in 1997
1997 Woodside/Shell finds Sunset and Loxton Shoals gas fields in
Timor Sea
1998 Woodside and Shell form alliance for their upstream operations
2004 Shell’s Geelong refinery in Victoria marks its 50th year of
operation
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NWS
North West Shelf
North-West shelf is the combination
of:
North Carnarvon
Offshore Canning
Bonaparte Basin
Browse Basin
Representing an investment of A$27

billion, the Woodside-operated
North West Shelf Venture facilities
constitute Australia’s largest oil and
gas resource development and
currently account for more than 40
per cent of Australia’s oil and gas
production
One per cent of Australia’s GDP
http://www.searchanddiscovery.net/documents/longley/index.htm
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12
Environment
Environmental loads: Risks/ Issues:
Cyclones (e.g. Cyclone Olivia in Oil spillage
1996) Human activity
Monsoonal tides Onshore facilities (e.g. Barrow
Earthquakes Island)
Carbon emission
Water Depth Groups effected

Ranges from 15-5000 Sea Turtles
Shallow to Moderate Depth Birds
low abundance high diversity of Future Generations
fauna
Deep Water not habitat
25
History of WAPET
WAPET registered as a company on 11 March 1952
Original venture agreement was between Ampol (20%) and
California Texas Corporation (80%)
1952 permit areas totalled approx 1,000,000 sq km (almost 400,000
sq miles) comprised of the Perth, Carnarvon, Canning and
Bonaparte Gulf basins, plus the coastal strip from Onslow to the De
Grey river mouth, plus the Kimberley block, including all offshore
islands and waters from the tideline to a depth of 100 fathoms
(approx 183 metres)
In its 48 years, WAPET employed directly just over 3300 people,
produced 421 million barrels of oil and 691 billion cubic feet of gas
1st well, Rough Range 1, off Exmouth
Barrow Island, Photos courtesy JCW,

WAPET retiree 26
13
History of WAPET
Barrow Island permits were transferred to WAPET in 1952 when it
was registered as the operating company for Caltex and Ampol
Barrow Island, which in 1964 gave Western Australia its first
commercial oil field, lies in a chain of islands stretching 250
kilometres north-eastwards from North-West Cape
Barrow No. 1 was spudded on May 7, 1964. The well produced gas
on June 22, 1964, and oil flowed to the surface on July 7, 1964
First shipment was 30,600 tonnes (225,000 barrels) of crude oil sent
in the Ampol tanker "P.J. Adams" on April 23, 1967, from Barrow
Island to the BP refinery at Kwinana
Barrow Island, Photos courtesy JCW, WAPET retiree 27

History of WAPET
Actual production rate averaged 13,196 barrels a day in 1967 and
rose to 29,524 barrels a day in 1968 reached a peak of 45,731
barrels a day in 1970
Barrow Deep No. 1, was drilled in 1973 to a depth of 4,650 metres
and at the time was the deepest well ever drilled in WA by WAPET
Royalty rate of 5 per cent applied
A 10 km long, 50 cm diameter, concrete coated pipeline laid on the
ocean floor took the oil from the storage tanks to tankers moored to
a buoyed offshore loading terminal
Photos courtesy JCW, WAPET retiree 28

14
Woodside
Emergence of Woodside as major player in 1962
Victorian company
Awarded exploration rights in June 1963 over more than
367,000sqkm off north-western Australia in what is known as the
North West Shelf
Technical difficulties with water depth and remoteness
Partners sought and found with Burmah Oil Company Ltd & Royal
Dutch Shell
Chevron and BHP and BP took interest and became partners
Early 70’s the commercially viable wells of North Rankin, Goodwyn
and Angel found
Contain 50 trillion cubic feet of gas and provide the basis of the
A$19 billion North West Shelf Venture
29
Technology
Early technological advances
NWS Infrastructure
CO2 Geosequestration
Contract Work
Dongara, WA, photo: K. Oerlemans

30
15
Technology
Early 1930s Woolnough experiments with first applications of air photography to geology
in northern Australia
1937 First air survey of Papua New Guinea
1940s Bitumen and Oil Refineries (Australia) Limited establishes first Australian-owned
refinery
1946 Lakes Oil helped pioneer the art of horizontal drilling
1949 Australia’s first reflection seismic survey shot by BMR in Roma area of Queensland
Early 1950s Introduction of helicopters to survey work, particularly in Papua and New
Guinea
1957 First heli-rigs used in Papua and New Guinea by Australasian Petroleum Company
Mid — 1960s First use of satellite position fixing and digital recording instruments in
seismic surveys
2006 Auclad Group launches $10 million platform jacket for the New Zealand Pohokura oil
and gas field from its Henderson construction yard in Western Australia. It is the first-ever
export of an oil & gas platform jacket from Australia
31
Infrastructure
Three fixed offshore platforms (North Rankin, Goodwyn and Angel)
One floating production, storage and offloading vessel (Cossack
Pioneer)
Partners: BHP Billiton Petroleum (North West Shelf) Pty Ltd, BP
Developments Australia Pty Ltd, Chevron Australian Pty Ltd, Japan
Australia LNG (MIMI) Pty Ltd, Shell Development (Australia) Pty Ltd
and Woodside Energy Ltd, who is also Operator of the North West
Shelf Venture’s facilities.
Australia's largest onshore gas plant on the Burrup Peninsula (near
Karratha).
Includes five LNG processing trains
Natural gas plant to supply Western Australia
LPG and condensate production facilities
Storage and loading facilities for LNG, LPG and condensate
32
16
Infrastructure
Burrup Peninsula, source: Woodside 33

Infrastructure
View Video – http://www.highway1.tv/northwestshelfventure/
Source: http://www.nwsalng.com.au/website.aspx?mp=3&pn=302
34
17
Infrastructure
Gorgon Gas fields
located between 130km and 200km off the north-west coast of
Western Australia
40 trillion cubic feet of gas, Australia's largest-known gas
resource
Project includes:
Subsea pipelines to Barrow Island
Gas processing facility on Barrow Island consisting of three,
5 million tonne per annum LNG trains
LNG shipping facilities to transport products to
international markets
Greenhouse gas management via injection of
carbon dioxide into deep formations beneath
Barrow Island
35
CO2 Geosequestration
Geosequestration of C02 – Carbon Capture Storage: process of capture,
transport, injection and storage of CO2 in underground geological
formations for the primary purpose of mitigating greenhouse gas emissions
CO2 is a by product of gas production and is removed and requires
subsequent disposal
The disposal of the CO2 on Gorgon is not a unique issue worldwide
but the magnitude is something not currently faced
The Gorgon gas is a proven sour gas reserve having a large carbon
dioxide (CO2) content – planned total 125 million tonnes of CO2 (daily
rate of about 10 000 tonnes) to be sequestered
Proposed site is the Dupuy Formation under Barrow Island
Gorgon Dupuy Reservoir
In Salah
Rangely
Snovit
Sleipner (Utisra Reservoir) is the only active CO2
Sleipner sequestration project in the world today
Lost Hills
Weyburn
Frio
Active storage project into saline aquifer
Comparison of Geosequestration Vacuum
West Pearl
Planned storage project into saline aquifer
Active CO2 EOR Projects
Queen
Projects (Malek, 2005) 0 10 20 30 40 50 60 70 80 90 100 110 120 130
Mass of CO2 (MMt)

36
18
Contract Work
Larger Operating companies contract out almost all aspects of
running the field to smaller companies
Opportunities for advancements in technologies and growth for
smaller companies are massive – e.g. Seatrac
Dongara, WA
photo: K. Oerlemans
37
Seatrac
Founded by a mechanical engineer from Curtin Uni, Jeff Burns and
businessman Jon Edwards in 1999
Subsea well intervention
Focus on Effectiveness and Efficiency
Developed new technologies that now lead the industry
CIT, AXE, & SID
Bought out by Helix Energy Solutions Group
Well Ops
Hybrid SID,
http://www.helixesg.com/
EnergyServices/WellOps/
Downloads/tabid/157/Def
ault.aspx
38
19
Well Ops
Specialist Equipment:
VDS (Vessel Deployment
System)
Features
Skidding System
Cursor system
Active Heave Compensated
Lifting Winch
Moon pool
Adaptable to most vessels over
65m
Collapsible for in gauge road
transport
39
Well Ops
VDS
Benefits
No lifting required on deck
Lifted loads constrained
Heave compensation of guide and
pod lines
Moon pool style operations on a
typical OSV
Easy personnel access for
maintenance or repair
Rapid assembly / removal from
vessel deck
Provides cost effective well
intervention capabilities without
any requirement for offshore
drilling rigs
Other
AXE (cutting tool) & CIT (Cement
Injection Tool)
40
20
Royalties
Mineral and Petroleum projects are a major source of state revenue for
Western Australia
Revenue from petroleum has been notably increasing

Total Royalties Total Royalties as a % of State Revenue
2,500 14%
12%
2,000
10%
1,500
8%
$A Million
6%
1,000
4%
500
2%
0 0%
2006-07*
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
Western Australian Royalties as a share of State Revenue 2005-06
41
Alumina
Other
Royalties Nickel
9%
4%
6%
Diamonds
WA’s Total Mineral and Petroleum 1%
Royalties 2006-07 – Total Value
$2.093b Petroleum
34%
Iron Ore
$A million
41%
2,500
Gold
5%
2,000
Gold
Nickel
1,500
Alumina
Diamonds
1,000 Iron Ore
Petroleum
Other
500
0
1984-85
1986-87
1988-89
1990-91
1992-93
1994-95
1996-97
1998-99
2000-01
2002-03
2004-05
2006-07
Western Australian Mineral and Petroleum Royalty Receipts

42
21
NWS Sales and Exports
In 2006-07 Petroleum sales amounted to $53.4 billion or 31%

of the states total mineral and petroleum revenue.
43
WA’s Petroleum Exports 2006-07 WA’s Crude Oil and Condensate Exports 2006-07
Total Value $10.64 billion Total Value $5.79 billion
44
22
Growth and change in Australian
Exports
The petroleum oil and products
industry – the third highest
growth of Australian exports
Export destinations –India and

China are now the largest
export destinations for Australia
45
Effect on Economy - Employment

The petroleum and minerals
exploration and extracting sector
direct employment is 1.2% of
Australia’s national employment
Agriculture, Forestry and
Fishing
Mining and Petroleum
Mining and
Manufacturing
Petroleum
Electricity, Gas and
Water Supply
Construction
Wholesale Trade
Retail Trade
Accomodation, Café
and Restaurants
Transport and Storage
Communication
Services
Finance and Insurance
Property and Business

Services
Government Admin and
Defence
Education
Health and Community WA Employment by Industry Sector

Services
Cultural and
46
23
Effect on Economy - Employment
Direct Employment in the WA Resource Sector
Projects in the north west shelf employs 7.5% of all personnel working in the
Minerals and Petroleum Industry in WA
65,000
60,000
55,000
Number of Employees
50,000
45,000
40,000
35,000
30,000
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
47
WA’s effect on Australia’s Economy

In the 2005-06 financial year WA Resource Sector contributed to 27% to
the Total State Economy (GSP – Gross State Product)
North West Shelf Project accounts for 1% of Australia’s total GDP
WA’s share of World Production of LNG (by quantity) in 2006 was 8%
48
24
Future Contributions
“Woodside's Pluto leads strong oil
and gas field”
13-September-07
Written by Mark Beyer for
Business News
“The oil and gas sector is set to

make an increased contribution to
WA's strong economy with eight
major expansion projects under
way, including the state’s single
most expensive development,
Woodside Petroleum’s $12 billion
Pluto gas project.”
49
Subsea offshore infrastructure (above right) and Proposed Projects andNo.
CRICOS Provider their value
00126G – 2006
copyright © The (below
University ofright)
Western Australia
NWS Net Benefit

Substantial benefits to a country from the development of gas
and oil projects
Western Australia is highly prospective and a substantial
petroleum producer
The massive expenditure required for exploration and
development in remote offshore waters requires the investment
by large companies capable of carrying the risks involved
These companies are mobile and many countries seek their
investment
Cape Range Wells, WAPET 50

25
NWS Net Benefit
Australia has political and economic stability and a proven
record in the safe and environmentally sound recovery of
petroleum resources
Petroleum companies and the Government continue to work

together to ensure that exploration and development occur in a
way that meets the needs of the companies as investors and
the needs of the community as the owners of the resources
Carnarvon Basin, WAPET, 52-57 51

NWS Net Benefit

To remain attractive, Western Australia must be able to
provide:
Petroleum potential
Access to land and water for exploration
A financial and legal regime that encourages investment
Sound policies on:
R&D
Technology transfer
Local content
Education and training
Spinning pipe with hemp rope on the floor of a Brown Drilling T-32 rig,
WAPET, 1951
52
26
In Summary
History of Western Australian oil industry
Growth of projects
Technologies
Management of its resources - boom into a bust?
Fiscal management policies
My thanks to the retired folks of the Western Australian

Petroleum Company, in sharing some of their photos.
53
Lecture Conclusion
Online discussion:
Dutch Disease – The term first applied to the Netherlands has been
applied to Norway and Saudi Arabia, is there a case to be made for
the application of this term to Western Australian situation?
This is the end of lecture 5, and topic 5

You may now progress to Lecture 1, Topic 6
54
27

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CRICOS Provider No. 00126G copyright © The University of Western Australia

BL Oil & Gas History, Economics and Geopolitics OENA8433

Dr. Karin Oerlemans

CRICOS Provider No. 00126G copyright © The University of Western Australia

Australia’s oil and gas basins and

Photos courtesy JCW, WAPET retiree

 Local suppliers want to see investment and employment benefits from

 Governments and petroleum companies have adopted local content

Photos courtesy JCW, WAPET retiree

Governments & Legislation

 1927 Petroleum Prospecting Act extended to Papua New

 1928 Geophysical Survey Act passed by government to prompt

 1931 Commonwealth Government imposes four pence per

 1957 Petroleum Search Subsidy legislation passed, broadened

 1968 Joint Federal-State legislations for jurisdiction of

 1974 Barrier Reef Royal Commission report bans further

 1975 Federal Government introduces world parity pricing for

Governments & Legislation

 1998 Federal Government

 2006 Federal Government

Governments & Legislation

 Department will implement the consolidated regulations by the

 1800 Sealers and Whalers use bitumen stranded along Australia’s

 1866 West Australian bituminous resins on display in Paris

 1865 J. Graham Sets up Pioneer Kerosene Works at Port Kembla, New

 1860s First petroleum import from America

Dongara, WA. Photo: K. Oerlemans 16

 1906 Roma, Qld – lit for 10 days by natural gas

 1915 First recorded Tasmanian exploration drilling on Bruny island

 1940s War interrupts oil exploration

Photos courtesy JCW, WAPET retiree

Early Oil Companies

Source: www.seagas.com.au/ for_schools.htm 18

Major Multinationals – BP in Australia

Major Multinationals – Shell in Australia

 1968 Lady Casey, wife of the Governor-General, launches Shell's first

 Representing an investment of A$27

 Water Depth  Groups effected

Barrow Island, Photos courtesy JCW,

Barrow Island, Photos courtesy JCW, WAPET retiree 27

Photos courtesy JCW, WAPET retiree 28

Dongara, WA, photo: K. Oerlemans

 1937 First air survey of Papua New Guinea

 1946 Lakes Oil helped pioneer the art of horizontal drilling

Burrup Peninsula, source: Woodside 33

Comparison of Geosequestration Vacuum

Mass of CO2 (MMt)

 Revenue from petroleum has been notably increasing

Western Australian Royalties as a share of State Revenue 2005-06

Western Australian Mineral and Petroleum Royalty Receipts

In 2006-07 Petroleum sales amounted to $53.4 billion or 31%

NWS Sales and Exports

 Export destinations –India and

Effect on Economy - Employment

Property and Business

Health and Community WA Employment by Industry Sector

WA’s effect on Australia’s Economy

 North West Shelf Project accounts for 1% of Australia’s total GDP

 WA’s share of World Production of LNG (by quantity) in 2006 was 8%

 “The oil and gas sector is set to

NWS Net Benefit

Cape Range Wells, WAPET 50

Local suppliers want to see investment and employment benefits from

Governments and petroleum companies have adopted local content

1927 Petroleum Prospecting Act extended to Papua New

1928 Geophysical Survey Act passed by government to prompt

1931 Commonwealth Government imposes four pence per

1957 Petroleum Search Subsidy legislation passed, broadened

1968 Joint Federal-State legislations for jurisdiction of

1974 Barrier Reef Royal Commission report bans further

1975 Federal Government introduces world parity pricing for

1998 Federal Government

2006 Federal Government

Department will implement the consolidated regulations by the

1800 Sealers and Whalers use bitumen stranded along Australia’s

1866 West Australian bituminous resins on display in Paris

1865 J. Graham Sets up Pioneer Kerosene Works at Port Kembla, New

1860s First petroleum import from America

1906 Roma, Qld – lit for 10 days by natural gas

1915 First recorded Tasmanian exploration drilling on Bruny island

1940s War interrupts oil exploration

1968 Lady Casey, wife of the Governor-General, launches Shell's first

Representing an investment of A$27

Water Depth Groups effected

1937 First air survey of Papua New Guinea

1946 Lakes Oil helped pioneer the art of horizontal drilling

Revenue from petroleum has been notably increasing

Export destinations –India and

North West Shelf Project accounts for 1% of Australia’s total GDP

WA’s share of World Production of LNG (by quantity) in 2006 was 8%

“The oil and gas sector is set to

Petroleum companies and the Government continue to work

My thanks to the retired folks of the Western Australian

This is the end of lecture 5, and topic 5