Question

What adversity is conoco Phillips facing in Australia

Answer 1

Conoco phillips is an independent E&P company .i.e.exploration and production company for development and production of crude oil and natural gas worldwide.It started operating in Australia two decades back which is a country of immense natural gas and a global supplier of energy.

Conoco phillips has headquarters in Australia West and East, being a supplier of natural gas it is helping to reduce emissions of green house gases.

however, by the end of 2013, Australia implemented downstream oil refining strategy but it was insufficient to cover the domestic oil market requirements which implies that it had to import its oil products in order to satify its domestic market demand for oil. This happened because there had been a spurt in the domestic gas market with rising costs which led to prices getting tripled.

there are a lot of challenges for Australia's LNG and natural gas sectors, the global gas and LNG price hike is putting pressure on new viable projects under development in Australia after which the country would have a total capacity of 85million tonnes per year, is suffering bugdet constraints as costs are rising.

To make matters worse, there is huge competition coming up from the China and Russia $400 billion gas supply deal and new US LNG project. This would lead to over supply of LNG in the market by 2018.