Hydrocarbon Engineering - August 2019

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August 2019 13 HYDROCARBON
ENGINEERING
A ustralia is a resource-rich country. It is a major
exporter of minerals, energy, and food, yet it has
worked diligently to avoid over-reliance on
resource extraction. It has an open market and a
diverse economic base. Australia is a key member in
numerous international organisations including the
Organization for Economic Cooperation and Development
(OECD), the World Trade Organization (WTO), the Group
of Twenty (G20), and Asia-Pacific Economic Cooperation
(APEC). The country has also expanded trade and economic
cooperation via bilateral agreements and free trade
agreements with virtually every major economy in the
Asia-Pacific region. Australia is viewed as highly attractive to
foreign investment, which has made it possible to complete
long-term, capital-intensive projects including LNG
installations.
Yet there is a limit to how many more drilling, mining,
and heavy industry installations Australia can accommodate.
The country’s economy is carbon-intensive on a per-capita
basis. Its population is approximately 24.8 million,
accounting for only 0.32% of the world’s population. Yet
according to BP, Australia accounted for 1.2% of global
carbon emission in 2018. BP’s ‘Statistical Review of World
Energy’ reported that Australia relied on fossil energy for
92.8% of primary energy needs in 2018 – one of the highest
levels among OECD countries.
It is noteworthy that the subtitle of BP’s 2019 Statistical
Review is ‘Energy in 2018: an unsustainable path’. BP reported
that global coal consumption grew for the second
consecutive year, following three years of declines.
Carbon dioxide (CO2) emissions expanded by 2%, twice the
average increase seen between 2007 and 2017.
Nancy Yamaguchi, Contributing Editor, explores Australia’s love-hate
relationship with fossil fuels, and questions whether the energy sector
can meet its carbon pledge.