According to the report by Expert Market Research (EMR), theAustralia oil and gas upstream market attained a value of USD 34.35 billion in 2025. Aided by continued investments in exploration and production activities, along with the development of offshore reserves, the market is projected to grow at a CAGR of 2.00% between 2026 and 2035, reaching a value of USD 41.87 billion by 2035.

The upstream sector encompasses the exploration, drilling, and production of crude oil and natural gas resources. Australia holds substantial hydrocarbon reserves, particularly in offshore basins such as the Carnarvon, Browse, and Bonaparte basins. The country is also one of the world’s leading producers and exporters of liquefied natural gas (LNG), strengthening the significance of its upstream operations in the global energy landscape.

Australia Oil and Gas Upstream Market Trends

One of the prominent trends shaping the Australia oil and gas upstream market is the increasing focus on offshore exploration and deepwater projects. Technological advancements in seismic imaging, drilling techniques, and reservoir management have improved recovery rates and reduced operational risks. Additionally, there is a growing emphasis on integrating digital solutions, including automation and data analytics, to enhance efficiency and optimise production processes.

Drivers of Growth

The growing global demand for natural gas, particularly in the Asia-Pacific region, is a key driver of the Australia oil and gas upstream market. Australia’s strategic geographic location and well-established LNG export infrastructure enable it to meet rising energy needs in countries such as China, Japan, and South Korea.

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Industry Analysis

The market is characterised by the presence of major international oil companies alongside strong domestic players. These companies are actively engaged in exploration campaigns, offshore developments, and joint ventures to share risks and capital costs. Significant investments are being directed towards large-scale LNG-linked upstream projects, which form a substantial portion of Australia’s hydrocarbon production.

Australia Oil and Gas Upstream Market Forecast

Over the forecast period of 2026–2035, the Australia oil and gas upstream market is expected to witness moderate but steady expansion. With increasing investments in offshore exploration, strong LNG demand from regional markets, and ongoing technological progress, the sector is poised for sustained development. By 2035, the market is anticipated to reach a value of USD 41.87 billion, reflecting the continued strategic importance of upstream operations in Australia’s energy economy.