Rising risks linked to decommissioning liabilities for exploration and production companies in the offshore oil and gas sector in Australia present a new challenge for the industry and regulators. Here’s what to be aware of.
It’s an event oil and gas executives in WA remember very well. On 3 June 2008, a corroded gas pipeline ruptured, causing a crippling explosion at a processing plant on Varanus Island, off the state’s Northwest coast.
There is no domestic gas shortage to worry about according to the Australian Energy Market Operator, which informed the market in a recent 2018 outlook that the east coast shortfall feared in 2017 had been successfully averted.
The Northern Territory government made a landmark decision in April to lift its 18-month blanket ban on hydraulic fracturing, after findings from an independent scientific inquiry showed the risks of the industry could be mitigated, reduced or avoided.
The renewable energy surge in Australia continues, with the most recent Australia Institute’s 2018 quarterly Emissions Audit reporting grid energy such as hydro, wind and solar added to rooftop solar accounts for 25.6% of the August national electricity market.
Mergers and acquisitions within the energy market show no signs of slowing down in the near future as confidence in the sector soars.
Cyber risk is a well-known threat for businesses across all sectors, from the troves of personal data housed by financial institutions, to nationally significant infrastructure governed by our public sector. However, the implications for private oil and gas companies are less understood.
Unlike many other regions around the world, the issue of decommissioning liabilities is one which is fast approaching E&P companies around Australia.
Fracking is perhaps the most contentious issue facing the energy market in the world today. Around the world, media organisations have reported on protests and legislative actions concerning fracking and its impacts on the environment.