Oil prices and gas pricing uncertainty to weigh on Aus energy sector

While delivering record gas and petroleum production in 2015, Australia’s energy sector was facing a challenging 2015 with a lower oil price environment and uncertainty over gas pricing on the east coast, market analyst EnergyQuest reported this week. EnergyQuest CEO Dr Graeme Bethune said Australian domestic gas production increased by 2% in 2014 to a record 1 134 PJ, and that liquefied natural gas (LNG) output was a record 24.7-million tonnes. Total 2014 oil and gas investment was only slightly below the record levels of 2013, with $4.2-billion exploration spending and $57-billion development spending (36% of national private new capital expenditure) incurred.