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Australia Oil and Gas Market Report Overview

The Australia oil and gas market attained a volume of 159.66 Thousand Barrels in 2025 and is projected to expand at a CAGR of 1.30% through 2035. The market is further expected to achieve 181.67 Thousand Barrels by 2035. Expanding LNG export infrastructure is creating specialised demand across Australia’s oil and gas value chain. The Scarborough Energy Project is designed to supply approximately 8 million tonnes of LNG annually, while Pluto Train 2 has planned capacity of around 5 million tonnes per year. These projects are increasing requirements for offshore production systems, subsea equipment, gas processing, LNG storage, marine transportation and specialised maintenance services. The concentration of large-scale LNG developments around established Western Australian hubs is also enabling suppliers to leverage existing infrastructure, technical capabilities and service networks, supporting greater operational scalability.

Key Market Trends and Insights

  • Natural gas represented 32% of Australia’s total energy production in 2023–24, while around 74% of domestic natural gas production was exported. LNG exports also increased by an average 13% annually over the previous decade, supporting continued investment in gas production, processing and export infrastructure.
  • Australia remained the world’s third-largest LNG exporter and seventh-largest gas producer in 2024, according to Geoscience Australia. In 2023–24, natural gas accounted for 30% of Australia’s total energy exports, demonstrating the importance of LNG and gas trade to the upstream and midstream sectors.
  • The Beetaloo Sub-basin contains 7.1 trillion cubic feet of publicly announced contingent gas resources and approximately 430 Tcf of prospective resources. Pilot production is progressing in 2026, with Santos, Tamboran Resources and other operators advancing drilling and production activities. This is creating opportunities for new gas-processing and pipeline infrastructure, thus propelling the Australia oil and gas market growth.

Market Size & Forecast

  • Market Size in 2025: 159.66 Thousand Barrels
  • Projected Market Size in 2035: 181.67 Thousand Barrels
  • CAGR from 2026 to 2035: 1.30%
  • Fastest-Growing Regional Market: Western Australia

Growing focus on the security of gas supply from domestic sources is facilitating investments in the production, processing, and transportation network. For instance, in Western Australia, the Gorgon and Wheatstone plants can produce up to 530 TJ/day of domestic gas, and Chevron claims that both facilities meet the needs of over 40% of domestic gas requirements in Western Australia. Long-term supply agreements with electricity generators and industrial customers are encouraging producers to maintain dependable production and strengthen transmission capabilities. This is creating opportunities for gas processing, pipeline infrastructure, supply management and flexible contracting across Australia's domestic energy market, thereby boosting the Australia oil and gas market value.

Connectivity through digital technology is being developed as an important innovation in Australian offshore oil and gas production. As far back as April 2026, Woodside made a direct link from its Scarborough floating production unit, situated 375 km off shore from Karratha, via fiber optics to its Perth control center. It allows the company to facilitate large amounts of data communication for remote operations, equipment and process monitoring, applications and cyber security. By August 2026, the fibre network had reached approximately 1,500 km of connectivity between the FPU and Woodside's Integrated Remote Operations Centre. This infrastructure enables more data-intensive remote monitoring and operational support for offshore assets.

Stringent emissions requirements remain a restraint for Australia's oil and gas industry because operators must progressively reduce emissions while maintaining production and competitiveness. The Safeguard Mechanism covers facilities emitting more than 100,000 tonnes of CO₂-e annually, including oil and gas facilities. Under the current framework, covered facility baselines generally decline by 4.9% annually through 2030. In 2023–24, 219 facilities across covered sectors were subject to the mechanism, collectively accounting for around 31% of Australia's greenhouse gas emissions. Meeting these declining baselines can require investment in emissions-reduction technologies, monitoring and compliance systems, thereby restricting the Australia oil and gas market developments.

Australia Oil and Gas Market Graph

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Key Trends and Recent Developments

Australia Oil and Gas Industry Segmentation

The Expert Market Research’s report titled "Australia Oil And Gas Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:

Market Breakup by Sector

  • Upstream
  • Midstream
  • Downstream
    • Downstream Oil
      • Residential
      • Industrial
      • Forest and Agriculture
      • Transportation
      • Others
    • Downstream Gas
      • Power
      • Fertilizer
      • Industrial
      • Others

Key Insight: The upstream sector is gaining traction through continued development of offshore gas resources and LNG-linked projects, including Australia's major developments in Western Australia and the Northern Territory. Midstream activity is being supported by investment in gas processing, pipelines, storage and LNG infrastructure, enabling producers to connect new resources with domestic and export markets. In the downstream oil segment, transportation remains an important demand centre, while industrial and agricultural applications continue to require refined fuels and lubricants for equipment and operations. Downstream gas is gaining momentum from its role in electricity generation and industrial processing, with natural gas also supporting fertilizer manufacturing through its use as a feedstock. Growing requirements for reliable gas supply and integrated infrastructure are strengthening linkages across upstream, midstream and downstream activities.

Market Breakup by Region

  • New South Wales
  • Victoria
  • Queensland
  • Western Australia
  • Australian Capital Territory
  • Others

Key Insight: New South Wales is gaining traction through the proposed Narrabri Gas Project, with Santos signing a September 2025 MOU to potentially supply up to 3.2 PJ of gas annually to the Northern NSW Inland Port, supporting new industrial activity. Victoria is strengthening its upstream position through renewed production from the offshore Otway Basin, where gas output reached 23.9 PJ in FY2024-25, compared with 8.92 PJ in FY2023-24. Queensland remains centred on its established LNG and gas-producing basins, supporting east-coast supply chains. Western Australia is gaining further momentum from Woodside’s Scarborough Energy Project, with Pluto Train 2 targeting first LNG cargo in Q4 2026. The Australian Capital Territory has limited upstream activity but remains connected to gas-market development through east-coast infrastructure and demand. Other regions are supported by emerging exploration and infrastructure opportunities linked to Australia’s broader oil and gas supply network.

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Australia Oil and Gas Market Share

By sector, video is anticipated to dominate through comprehensive visual and connected monitoring capabilities

The upstream segment holds the dominant position in Australia’s oil and gas market, underpinned by the country’s extensive resource base and concentration of large-scale producing assets. Offshore developments in Western Australia remain central to production, supported by established LNG-oriented fields, subsea infrastructure and processing facilities. Queensland’s coal seam gas industry also contributes significantly to Australia’s gas supply. Activity across drilling, reservoir management, field expansion and production optimisation continues to reinforce upstream’s market position. The segment’s established asset base and integration with LNG projects provide producers with opportunities to maintain output while extending the productive life of existing resources. Such developments will thus boost Australia oil and gas market trends in the long run.

Australia Oil and Gas Market Segment Sector

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Faster growth is seen in the downstream gas industry since natural gas is meeting the particular power generation and industrial needs in various regions. Western Australia and Northern Territory in particular depend on gas-fired power generation, which means that there is a need for a reliable supply of gas, gas processing, and distribution infrastructure. The gas is also increasingly being used as part of power systems that use dispatchable generation with renewable energy sources. Industrial users further support demand through applications requiring dependable thermal energy and gas feedstock, strengthening downstream gas activity across Australia's regional energy markets.

Australia Oil and Gas Market Regional Analysis

By region, Western Australia dominates due to its gas production, LNG infrastructure and export-oriented energy ecosystem

Western Australia remains the principal center of Australia's oil and gas production ecosystem. In 2023-24, the state generated 3,535 PJ of natural gas, accounting for 58% of national production, while natural gas represented 53.5% of the state's primary energy mix. The region's importance is reinforced by its concentration of offshore resources, LNG processing facilities and domestic gas infrastructure. Queensland forms the other major production hub, with 1,583 PJ of gas production in 2023-24, nearly five times its production a decade earlier, largely reflecting the expansion of coal seam gas, thereby directly boosting the Australia oil and gas market regional growth.

Australia Oil and Gas Market Regional Analysis

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Southeastern Australia presents a different commercial profile, with stronger emphasis on consumption, fuel distribution and gas-supply infrastructure. New South Wales accounted for 24.2% of Australia's total energy consumption in 2023-24, while Victoria accounted for 20.7%. Victoria is particularly significant for residential gas and downstream infrastructure, while NSW represents a large industrial and transport energy market. The Australian Capital Territory remains primarily a demand center. Collectively, these regions create a two-speed market: resource-rich western and northeastern jurisdictions drive production and export infrastructure, while southeastern jurisdictions generate opportunities in refining, storage, gas imports, distribution and energy-security services.

Competitive Landscape

Australia oil and gas market players are aiming to boost growth and scalability through expansion of LNG capacity, development of new gas resources, optimisation of existing assets, and investment in advanced exploration and production technologies. Companies are focusing on improving operational efficiency, increasing recovery from mature fields, and strengthening gas processing, transportation, and export infrastructure. Strategic partnerships, joint ventures, long-term supply agreements, and portfolio diversification are also being used to spread capital requirements and access new markets. These strategies enable companies to scale production while improving asset utilisation and strengthening their position across domestic and international energy markets.

Australia oil and gas companies are increasingly targeting lower-emission operations and carbon-management capabilities to align future investments with Australia's energy-transition objectives. Investments in emissions reduction, methane management, carbon capture and storage, electrification, and renewable-energy integration are being pursued alongside conventional oil and gas projects. Companies are also prioritising digitalisation and automation to improve asset monitoring, reduce downtime, and support scalable operations.

Woodside Energy Group Limited

Woodside Energy was established in 1954 and is headquartered in Perth, Western Australia. The company offers integrated oil and gas solutions covering exploration, development, production, LNG processing, domestic gas supply, marketing and energy trading. Its Australian portfolio includes Pluto LNG, North West Shelf interests and the Scarborough Energy Project. Woodside supplies LNG, pipeline gas, condensate and crude oil to domestic and international customers. Its offerings also increasingly include lower-carbon energy solutions, carbon management and new-energy projects supporting the transition of its energy portfolio.

Santos Ltd.

Santos was founded in 1954 and has its registered and head office in Adelaide, South Australia. The company offers upstream exploration, natural gas and oil production, gas processing, LNG development, pipeline transportation and domestic energy supply. Its Australian portfolio includes the Cooper Basin, Gladstone LNG and Darwin LNG, supported by associated processing and infrastructure assets. Santos supplies natural gas and LNG to domestic and international customers while developing carbon-management capabilities. Its broader offerings include integrated gas projects, infrastructure services and solutions aimed at supporting lower-emission energy production.

Chevron Australia Pty Ltd.

Chevron traces its corporate history to 1879 and is headquartered in Houston, Texas. In Australia, the company offers integrated energy operations spanning natural gas exploration and production, offshore development, gas processing, LNG production and energy supply. Its major Australian interests include Gorgon, Wheatstone and the North West Shelf Project. Chevron supplies LNG and domestic natural gas while operating associated offshore platforms, subsea infrastructure and processing facilities. The company also develops carbon-management and emissions-reduction initiatives alongside its conventional oil and gas activities to support more efficient energy production.

Beach Energy Limited

Beach Energy was founded in 1961 and is headquartered in Adelaide, South Australia. The company offers exploration, development and production of oil, natural gas and natural gas liquids across multiple Australian basins. Its portfolio includes assets in the Cooper, Perth, Otway and Bass basins, supporting domestic gas supply and oil production. Beach Energy's offerings encompass upstream field operations, gas processing, transportation arrangements, exploration services and resource development. The company focuses on supplying natural gas to Australian markets while maintaining an oil production and exploration portfolio across its operating regions.

Other key players in the market include ExxonMobil Australia Pty Ltd., BP Australia Pty Ltd., Shell Energy Operations Pty Ltd., Origin Energy Limited, and Cooper Energy Limited, among others.

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Key Features of the Australia Oil and Gas Market Report

  • Detailed assessment of Australia's upstream, midstream and downstream oil and gas value chains.
  • Quantitative analysis using government and authoritative energy-industry datasets.
  • Regional analysis covering major Australian states and territories.
  • Assessment of 2026-2035 company developments and infrastructure investments.
  • Competitive analysis covering major domestic and international market participants.
  • Strategic insights supporting investment, expansion and procurement decisions.

Why Choose Expert Market Research?

  • Access structured market intelligence designed for strategic B2B decision-making.
  • Evaluate emerging opportunities across production, infrastructure and downstream markets.
  • Understand regional demand patterns and evolving competitive dynamics.
  • Leverage quantitative and qualitative analysis for investment planning.
  • Identify actionable opportunities across the Australia oil and gas value chain.

Call to Action

Explore the Australia Oil and Gas Market trends 2026 with Expert Market Research's comprehensive industry assessment. The report provides detailed analysis of market structure, sector performance, regional opportunities, competitive developments and the Australia Oil and Gas Market forecast 2026-2035. Download the sample report to understand emerging investment opportunities, changing supply dynamics and strategic developments shaping the Australia Oil and Gas Markets Market Size and outlook.

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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*

Frequently Asked Questions About This Report

In 2025, the market reached an approximate volume of 159.66 Thousand Barrels.

The market is projected to grow at a CAGR of 1.30% between 2026 and 2035.

The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach 181.67 Thousand Barrels by 2035.

Key strategies driving the Australia oil and gas market include investment in exploration and production, expansion of LNG export capacity, adoption of advanced drilling technologies, development of lower-emission operations, strategic partnerships, infrastructure modernisation, portfolio diversification, and long-term supply agreements.

Key trends aiding the market expansion encompass technological advancements like digitalisation and automation improving operational efficiency, focus on renewable energy sources impacting investment decisions, and increasing emphasis on sustainability driving innovation in extraction methods.

Regions considered in the market are New South Wales, Victoria, Queensland, Western Australia, and Australian Capital Territory, among others.

Key players in the market are ExxonMobil Australia Pty Ltd., BP Australia Pty Ltd., Woodside Energy Group Limited, Shell Energy Operations Pty Ltd., Santos Ltd., Origin Energy Limited, Beach Energy Limited, Cooper Energy Limited, and Chevron Australia Pty Ltd, among others.

Key challenges in the Australia oil and gas market include commodity price volatility, stringent environmental regulations, emissions reduction targets, high operating and project costs, ageing infrastructure, skilled labour shortages, supply chain disruptions, and the transition towards renewable energy sources.

Report Summary

Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.

Key Highlights of the Report

Please note that the figures mentioned in the description serve as estimates and may vary from the actual figures presented in the final report.

REPORT FEATURES DETAILS
Base Year 2025
Historical Period 2019-2025
Forecast Period 2026-2035
Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:

  • Sector
  • Region
Breakup by Sector
  • Upstream
  • Midstream
  • Downstream
Breakup by Region
  • New South Wales
  • Victoria
  • Queensland
  • Australian Capital Territory
  • Western Australia
  • Others
Market Dynamics
  • SWOT Analysis
  • Porter's Five Forces Analysis
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • ExxonMobil Australia Pty Ltd.
  • BP Australia Pty Ltd.
  • Woodside Energy Group Limited
  • Shell Energy Operations Pty Ltd.
  • Santos Ltd.
  • Origin Energy Limited
  • Beach Energy Limited
  • Cooper Energy Limited
  • Chevron Australia Pty Ltd.
  • Others

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