JOHANNESBURG (miningweekly.com) – Queensland has suffered a severe decline in petroleum exploration over the past five years, with the state leading a national decline in both onshore and offshore exploration activity, the Australian Petroleum Production and Exploration Association (Appea) reported on Wednesday.
Appea director for Queensland Chris Lamont cited regulatory restrictions and uncertainty as some of the main reasons for exploration being in decline.
“Analysis of exploration activity confirms that falling commodity prices are just one of the factors responsible for declining exploration,” he said, adding that exploration activity in Queensland had started to fall well before the relatively recent decline in the global oil price.
Citing the Australian Bureau of Statistics, Lamont reported that Australia’s onshore petroleum exploration had fallen by 27.8% in the December quarter, with Queensland being the largest contributor to the decrease.
Appea believed regulatory creep, a lack of highly prospective new acreage, data gaps, diminished access to capital and constraints on access were responsible for the decrease in exploration in Queensland.
“Queensland’s exploration industry is of critical importance to the state’s energy security and is an essential ingredient for future employment and business growth,” Lamont said.
“It is vital that Queensland has a vibrant and active exploration sector not just to identify future natural gas sources, but in identifying the most cost effective and productive areas from which to source supply.”