Advanced Natural Resource Planning for Australian Oil Resource

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).