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Australia Boosts Oil and Gas Exploration Amid Energy Crisis

Created at 30 Jun · 11:15 PM1 source↑ Market-relevant
IN SHORT

Australia is increasing oil and gas exploration efforts to bolster domestic supply and meet export demand, driven by the ongoing energy crisis and a reduced refining capacity. Companies are set to spend over $1 billion on gas exploration this year, a 10% rise from last year, with new drilling licenses and streamlined approval pathways being implemented.

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Key Numbers

$1 billionprojected spending on gas exploration this year
10%increase in gas exploration spending compared to last year
4.8%decline in petroleum exploration expenditure in Q1 2026 quarter-on-quarter
46.2%jump in petroleum exploration expenditure year-on-year
78%Australians support producing more oil domestically
89%Australians prefer developing own gas resources over importing
65%Australians support fast-tracking local gas projects
US$344 millioncommitted exploration and appraisal spending in Taroom Trough
AUS$500 millioncommitted exploration and appraisal spending in Taroom Trough
2027potential final investment decision for Dorado oil project
80%Santos stake in the Dorado discovery
430 tcfestimated undiscovered gas in place in Beetaloo Basin
10 Mtpapotential LNG supply from Santos acreage
50 yearspotential supply duration for east coast market
2026planned appraisal spudding by Santos

Who's Involved

Rystad Energy
estimated spending increase for gas exploration
JWS Research
conducted online polling on energy development support
Australian Energy Producers
industry association that shared poll results
Keld Knudsen
Queensland Director at Australian Energy Producers
Omega TN Pty Ltd
awarded petroleum and gas exploration tenders
Tri-Star Stonecroft Pty Ltd
awarded petroleum and gas exploration tenders
Drillsearch Energy Pty Ltd
awarded petroleum and gas exploration tenders
Santos
energy firm appraising Beetaloo and Bedout basins
Australia Boosts Oil and Gas Exploration Amid Energy Crisis

↳ Why This Matters

Australia's renewed focus on domestic oil and gas exploration aims to enhance energy security, reduce reliance on imports, and meet growing regional demand, potentially impacting global energy supply dynamics and prices.

Key facts

  • Australia is increasing oil and gas exploration activities due to the current energy crisis and reduced domestic refining capacity.
  • Companies are projected to spend over $1 billion on gas exploration this year, marking a 10% increase from the previous year.
  • New drilling licenses have been awarded, and reforms are being implemented to accelerate exploration efforts.
  • Queensland has introduced legislation to streamline the development of energy projects.
  • Key exploration areas include the Taroom Trough, Beetaloo Basin, and Bedout Basin.
  • Santos is appraising the Beetaloo and Bedout basins, with the Dorado discovery potentially reaching a final investment decision in 2027.

Australia is experiencing a surge in oil and gas exploration activities, driven by a confluence of factors including the ongoing energy crisis, reduced domestic refining capacity, and strong demand from Asia. The nation, a major LNG exporter, faces challenges in ensuring domestic fuel supply, exacerbated by the closure of five out of seven refineries since 2013 and recent disruptions linked to the Iran war.

To address these energy security concerns, Australian federal and state governments are actively encouraging increased exploration. This year, operators are expected to invest over $1 billion in gas exploration, a 10% increase from last year, according to Rystad Energy. Despite a slight quarter-on-quarter dip in petroleum exploration expenditure in early 2026, the year-on-year trend shows a significant increase in both onshore and offshore drilling.

Public support for accelerating domestic energy development is high, with polls indicating strong backing for increased oil production and gas resource development. Governments are responding by awarding new drilling licenses and implementing reforms to streamline project approvals. New South Wales has launched its first natural gas exploration tender in a decade, and Queensland has introduced legislation to fast-track critical minerals and energy projects.

Several promising exploration areas are being targeted, including the Taroom Trough, Beetaloo Basin, and Bedout Basin. The Queensland government has awarded tenders in the Taroom Trough, where exploration commitments exceed US$344 million. Santos is set to appraise the Beetaloo Basin, estimated to hold over 430 tcf of undiscovered gas, and the Dorado discovery in the Bedout Basin, Australia's largest undeveloped oil project, could reach a final investment decision by 2027.

Frequently asked questions

Australia is increasing exploration due to an energy crisis, reduced domestic refining capacity, and to ensure domestic supply while meeting export demand.

Operators are set to spend over $1 billion on gas exploration this year, a 10% increase compared to last year.

Key areas include the Taroom Trough, the Beetaloo Basin in the Northern Territory, and the Bedout Basin offshore Western Australia.

Dorado is Australia's largest undeveloped oil project and could progress to a final investment decision in 2027, boosting energy security.

What Happens Next

01Santos plans targeted appraisal spudding in 2026 for the Beetaloo Basin.
02The Dorado oil project could reach a final investment decision in 2027.

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How It Developed

Australia is increasing oil and gas exploration efforts due to an energy crisis and reduced refining capacity.
Companies plan to spend over $1 billion on gas exploration this year, a 10% increase from last year.
New drilling licenses and reforms are being enacted to boost exploration.
Queensland has introduced new legislation to fast-track critical minerals and energy projects.
Several high-profile opportunities, including the Taroom Trough, Beetaloo, and Bedout Basins, are being explored.
Santos plans to appraise Australia's Beetaloo and Bedout basins to boost supply.
The Dorado discovery, Australia's largest undeveloped oil project, could see a final investment decision in 2027.

Sources

T1
Australia’s Oil and Gas Exploration Set for RenaissanceOilPrice.com

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