Advanced Natural Resource Planning for Australian Oil Resource

This presentation discusses the risks and threats associated with Australian Oil Resource, including political, supply and demand, price, and geological risks. It also covers the roles of stakeholders, such as National Energy Resources Australia, Australian Government, and local communities, and the challenges faced by planners, including complex supply chains and dwindling reserves. Finally, it provides strategies for reducing risks, such as careful analysis of environmental and geological elements, pro-business legislation, and effective risk management.

ADVANCED NATURAL
RESOURCE PLANNING
AUSTRALIAN OIL RESOURCE

Risk and threats
 Political Risk
West Australian oil and gas companies in the Carnarvon Basin are
covered by numerous regulations regarding the process and time of
extraction (Cordes et al., 2016).
Hence changing political government in the region can affect the
operation of the companies. Moreover, the issue of foreign
ownership can affect oil extraction.

Risk and threats
 Supply and Demand Risks
 The uneven nature of production is part of what makes the price
of oil and gas so volatile.
 The operations associated with oil reserve take huge capital as
well as time to keep running.
 Increased production flexibility is another reason to increase
competition in the industry that gradually affect the resources
enhancing geological and environmental risk

Risk and threats
 Price Risk
 Along with these political and geological risks, the fluctuating
price of oil is one of the primary factors that decides whether the
oil reserve is economically practicable.
 The more arduous the regulation, the more difficult will be the
drill. Thus the project becomes expensive (Richert, Rogers &
Burton, 2015).

Risk and threats
 Geological Risk
 The oil resources in the Carnarvon Basin area have a high risk in
difficulty of extraction and the possibility that accessible oil
reserves in the deposits can be lower than estimated.
 Climate changes and environmental pollution can affect the
legislation of the country which directly led risking the capacity of
oil resources

Roles of stakeholders
Main stake holders are -
 National energy resources Australia
 Australian Worldwide Exploration Ltd. ...
 The Australian Government
 Local communities
 Employees and management of the oil companies
 Subsidiary companies
 These stakeholders are affected by risks hence make decisions in support of the business (Ford, Steen & Verreynne, 2014)
 The investors are ready to take risk and know every information related to this resources so that they have risk taking mentality.

Challenges of planners
 The planners hence face challenges associated with
the supply chains as the complex supply chains in
this industry make it difficult for planning, delivering
projects on time as well as within budget
 Dwindling reserves of oil companies create issues to
The planners as they face difficulty to operate in the
remote and hostile environment of the country.

Strategies for reducing risks
 Careful analysis of database associated with environmental and
geological elements of oil resources before the investment is
being done
 Pro-business legislation must be issued by the Australian
government so that the investors get encouraged (Fleming &
Measham, 2015).
 Building sustainable relations with al the domestic as well as
international oil and gas partners

Strategies for reducing risks
 Collaborative planning among the subsidiary companies so that
the cost enhancement may be reduced
 Maintaining liberation between the implementation of system
and evaluation of their effectiveness
 Effective risk management strategies must involve to mitigate
majority of important incidents caused by the human factors

References
 Cordes, E. E., Jones, D. O., Schlacher, T. A., Amon, D. J., Bernardino, A. F.,
Brooke, S., ... & Gates, A. R. (2016). Environmental impacts of the deep-
water oil and gas industry: a review to guide management
strategies. Frontiers in Environmental Science, 4, 58.
 Fleming, D. A., & Measham, T. G. (2015). Local economic impacts of an
unconventional energy boom: the coal seam gas industry in A
ustralia. Australian Journal of Agricultural and Resource Economics, 59(1),
78-94.
 Ford, J. A., Steen, J., & Verreynne, M. L. (2014). How environmental
regulations affect innovation in the Australian oil and gas industry: going
beyond the Porter Hypothesis. Journal of Cleaner Production, 84, 204-213.
 Richert, C., Rogers, A., & Burton, M. (2015). Measuring the extent of a
Social License to Operate: the influence of marine biodiversity offsets in the
oil and gas sector in Western Australia. Resources policy, 43, 121-129.