Australian oil output falls 53.6% in June quarter

• Australian quarterly oil output plunged 53.6% year-on-year to a record low of 2.9 million barrels.
• Energy majors are diverting capital to foreign projects rather than domestic developments.
• Government policies, including domestic gas reservation schemes, aim to address tightening supply forecasts.

EnergyQuest reported Australian oil output dropped 53.6% year-on-year to a record low of 2.9 million barrels during the June quarter.

The steep drop occurred while Middle East conflicts constrained global energy supplies and raised domestic fuel security concerns.

"You can't talk seriously about fuel security while local oil production is falling off a cliff," said EnergyQuest Chief Executive Rick Wilkinson.

Local producers Woodside Energy (ASX:WDS) and Santos (ASX:STO) are directing capital towards overseas projects in the United States, Senegal, Papua New Guinea, and Alaska.

Liquefied natural gas export volumes fell from 19.5 million tonnes in the March quarter to 19.1 million tonnes in the June quarter.

Modelled domestic gas demand in Western Australia is projected to exceed 20% of local production by 2031 under current government reservation policies.