The Australian Petroleum Production & Exploration Association (APPEA) has reported that exploration in Queensland, which experienced a severe decline over the last five years, needs to be addressed.
APPEA Queensland director Chris Lamont said the plunge in petroleum exploration is resulting in a fall in exploration activity for both onshore and offshore activity within the country.
"We have a clear need for more exploration activity but a plethora of regulatory restrictions and uncertainty are frustrating the industry by ensuring there is the necessary activity in exploration to meet future energy needs."
Queensland was once a shining light for gas exploration and is currently undertaking less exploration than it did 15 years ago.
In the last quarter of 2015, onshore petroleum exploration in the state declined 27.8%, the Australian Bureau of Statistics confirmed.
Lamont added: "Analysis of exploration activity confirms that falling commodity prices are just one of the factors responsible for declining exploration."
Exploration activity in the state started declining even before the recent plunge in the oil price worldwide.
Factors such as regulatory restrictions, non-availability of prospective new acreage, data gaps, diminished access to capital and constraints on access also contributed to a fall in exploration activities.
Lamont said that exploration industry in Queensland is vital to the state’s energy security.
Image: Onshore petroleum exploration in Queensland declined 27.8% in the December 2015 quarter. Photo: courtesy of anankkml / FreeDigitalPhotos.net.
