Australian oil and gas exploration rebounds as expenditure climbs to multi-year highs

New figures from the Australian Bureau of Statistics (ABS) have highlighted a major turnaround in onshore and offshore oil and gas exploration in the country.

The latest ABS petroleum exploration expenditure figures show a seasonally-adjusted rise of 20.6% to $390.1 million and a 2.7% trend rise to $358.3m.

Onshore exploration achieved a seasonally-adjusted rise of 26.2% to $238.2m and a trend rise of 0.3% to $217m.

New programs

Expenditure on offshore oil and gas exploration rose by 12.6% to $151.8m seasonally adjusted, with a trend rise of 6.3% to $140.9m.

Significant new gas drilling programs off the Western Australian, South Australian, and Victorian coasts were major contributors.

Australia’s offshore exploration level had been particularly hard hit in recent years, with the federal government deciding it wasn’t viable to undertake its annual acreage release.

Meanwhile, onshore drilling has rebounded on the back of gas supply concerns and positive moves from the Queensland and Northern Territory governments.

NT drilling surge

ABS data show petroleum exploration expenditure in the NT reached $200m in the December 2024 quarter, the territory’s second-highest quarterly result on record.

Petroleum exploration expenditure for the full calendar year totalled $369.7m, a 469% increase on the 2023 figure of $78.8m.

New NT Minister for Mining and Energy, Gerard Maley, says the figures highlight growing investor confidence in the territory’s world-class gas basins.

Onshore gas hunt

“These results confirm that investors see the NT as a powerhouse for resource development, with our onshore gas basins leading the way in creating jobs and driving economic growth,” Mr Maley said.

“Importantly, this investment translates into real benefits for Territorians, with more jobs and more opportunities for local businesses supporting the sector.”

A significant proportion of the NT expenditure is likely to have been in the Beetaloo Sub-basin and Amadeus Basin.

Second-highest total

In total, petroleum and mineral exploration expenditure in the NT for 2024 reached $545.7m—the second-highest combined annual exploration investment ever recorded, behind the 2014 peak.

Total expenditure for the calendar year reached $176m—a 23% decline from 2023, but still the fourth-highest annual expenditure on record.

Mr Maley said the transition to a new environmental licensing regime also impacted activity but, with regulatory changes now in place, he expects the sector to stabilise in 2025.

“The NT government is backing our resources sector because it is the backbone of our economy and a key driver of economic recovery,” he said.

“We remain focused on ensuring the NT remains a leading jurisdiction for exploration, investment and job creation.”