Australia Oil and Gas Market Size, Growth & Trends (2025–2034)

The Australia oil and gas market remains a cornerstone of the country’s energy economy, contributing significantly to domestic energy security and export revenues. With its expansive offshore reserves, particularly across the North West Shelf and the Timor Sea, Australia plays a vital role in supplying both crude oil and natural gas to regional and global markets. While the country continues to transition toward cleaner energy, oil and gas still form a critical part of the national energy mix—especially in industrial, transport, and export applications.

Australia's oil and gas industry is also undergoing structural shifts to align with environmental policies and sustainability goals. Operators are increasingly focused on low-emission technologies, carbon capture and storage (CCS), and integrating renewable energy solutions into their operations.

Australia Oil and Gas Market Size

In 2024, the Australia oil and gas market reached a volume of 157.61 thousand barrels. This volume reflects consistent production and demand levels, particularly driven by liquefied natural gas (LNG) exports, industrial energy use, and transportation fuel consumption. The industry has remained stable despite global supply chain challenges and price fluctuations, supported by long-term export contracts and ongoing exploration activity.

Australia Oil and Gas Market Trends

• LNG Export Leadership: Australia remains one of the top global exporters of LNG, with major projects like Gorgon, Ichthys, and Pluto LNG ensuring supply to Asian markets.

• Carbon Management Focus: Leading firms are investing in CCS technologies to reduce emissions from upstream and downstream operations.

• Digital Transformation: Operators are using AI, predictive analytics, and real-time monitoring to improve operational efficiency and reduce downtime.

• Shift to Gas-Dominant Portfolio: There is a clear trend toward natural gas investments, driven by its role as a transition fuel.

• Regulatory Emphasis: Government policies are pushing for stricter environmental compliance, safety improvements, and transparency in reporting emissions.

Australia Oil and Gas Market Growth

From 2025 to 2034, the market is expected to grow at a CAGR of 1.30%, reaching a projected volume of 179.34 thousand barrels by 2034. Although the growth rate is modest, it reflects the sector’s shift toward sustainability, improved recovery techniques, and diversified production portfolios. The increasing role of gas, especially LNG, in both domestic and export markets is expected to continue as countries look for reliable, lower-emission fuel sources.

Growth will also be supported by:

• Continued investment in deepwater and offshore drilling

• Upgrading of refining infrastructure and fuel distribution networks

• Development of integrated energy hubs combining gas, hydrogen, and renewables

• Exploration activities in underutilized basins

Australia Oil and Gas Market Segmentation

Breakup by Type

• Upstream

• Midstream

• Downstream

Breakup by Drilling Type

• Onshore

• Offshore

Breakup by Application

• Institutions

• Residential

• Commercial

• Others

Australia Oil and Gas Market Forecast (2025–2034)

The Australia oil and gas market is projected to reach 179.34 thousand barrels by 2034, expanding at a moderate but steady pace as the country navigates the dual priorities of meeting energy demand and achieving long-term climate goals. This growth aligns with Australia’s strategy to maintain its status as a leading LNG exporter while also advancing efforts to decarbonize upstream operations.

Several factors are expected to shape the market outlook over the next decade. These include the expansion of LNG facilities with a focus on energy-efficient operations, alongside increasing interest in carbon-neutral or low-carbon LNG solutions. Australia is also strengthening its strategic partnerships with Asia-Pacific nations, securing long-term contracts that ensure consistent export demand.

Another key aspect of the forecast is the industry's transition planning, with oil and gas companies exploring ways to repurpose existing infrastructure for future use in hydrogen production or carbon capture and storage (CCS) projects. While oil demand is expected to gradually decline due to the rise of electric vehicles and renewable alternatives, natural gas will remain central, particularly for export markets and peaking power needs in domestic energy systems.

This evolving market landscape highlights Australia's commitment to balancing traditional energy resources with emerging clean technologies, ensuring the sector remains both relevant and resilient through 2034.

Competitive Landscape

The Australian oil and gas industry is dominated by global majors and leading domestic players, each playing a vital role across the exploration, production, refining, and distribution segments.

Key companies operating in the Australia oil and gas market include:

ExxonMobil Australia Pty Ltd.: A major player in offshore exploration and gas supply, with significant assets in the Bass Strait.

BP Australia Pty Ltd.: Active in refining and marketing, BP is also expanding its presence in LNG trading and low-carbon energy initiatives.

Woodside Energy Group Limited: Australia’s largest independent oil and gas company, leading major LNG projects including North West Shelf, Pluto, and Scarborough.

Shell Energy Operations Pty Ltd.: Operates the Prelude FLNG facility and is investing in digital and decarbonization projects across its operations.

Santos Ltd.: A leading producer with interests in natural gas and oil exploration across multiple basins, also investing in carbon capture and hydrogen.

Others: Include Origin Energy, Beach Energy, and new entrants exploring smaller-scale or specialty oil and gas applications.