Business Improvement Within Energy, Mining & Utilities
Australia’s energy industry is one of its largest and most complex – Australia is the world’s largest coal exporter, a major supplier of LNG and Uranium to world markets, and its Resources sector is a major driver of economic growth. At the front line of operations many long-standing challenges remain within exploration, asset and infrastructure build-out, plant and mine optimisation, environmental management, complex business operations and workforce management. Not to mention the broader picture of market volatility, geopolitical and regulatory challenges, technology and competitive disruption.
We help drive improvement within the core of businesses in this sector – with Process & Operational Excellence, Lean Six Sigma and Business & Technology Change. We’ve driven major gains in operating efficiency with automation, lean production, supply chain redesign, process improvement and expense reduction. Within Utilities we assist on several fronts driving operational efficiency, assisting with modernisation and technology change, and driving the workforce transformation that’s build a high-performance, agile talent base.
Oil & Gas
Resources & Mining
Power Generation & Delivery
The listed Energy sector is comprised of companies involved in the exploration and development of Coal, Uranium, Oil & Gas and renewable energy assets. Australia is rich in natural resources and boasts some truly world class energy assets. Australia is the world’s largest coal exporter and a major supplier of LNG and Uranium to world markets, in particular Asia. Companies in the utilities sector are generally involved in water, electricity, and gas distribution, generation and infrastructure.
The supply of electricity begins with power generators, which mainly rely on coal, gas, wind or hydro technologies. An interconnected network of high voltage transmission lines transports electricity from the generators to load centres in metropolitan and regional areas. Low voltage distribution networks then transport electricity from points along the transmission lines to customers.
Electricity & Gas
The gas supply chain is similar. Gas is extracted from wells in gas fields and is processed to remove impurities. High pressure gas transmission pipelines are used to transport the gas to demand zones. A network of distribution pipelines then delivers the gas from points along the transmission pipelines to customers.
Queensland, New South Wales, Victoria, South Australia, Tasmania and the Australian Capital Territory have interconnected electricity and gas networks. Electricity in this interconnected region is sold through a wholesale spot market—the National Electricity Market (NEM). Spot gas wholesale markets operate at major demand or supply hubs in Victoria, Sydney, Brisbane, Adelaide and Wallumbilla. A Gas Market Bulletin Board provides real time information on gas market conditions.
Distribution & Retail
Energy retailers buy wholesale electricity and gas and package it with transmission and distribution services for sale to residential, commercial and industrial customers. All retail customers in the NEM are eligible to choose their electricity and gas supplier. A national regulatory retail regime provides consumer protections to small customers. The regime operates in Queensland, New South Wales, South Australia, Tasmania and the ACT.Western Australia and the Northern Territory have separate electricity and gas networks and market arrangements.
Mining in Australia is a significant primary industry and contributor to the Australian economy. Historically, mining booms have also encouraged immigration to Australia. Many different ores and minerals are mined throughout the country, and Australia is one of the world’s largest producers of many mineral products, including aluminium, copper, gold, iron, mineral sands, zinc and coal.
Mining generates $138 billion per annum, which represents over half (54 per cent) of total goods and services. It contributes 6-7% of Australia’s GDP, far more than agriculture (3%) or tourism (2%). The industry employs 187,400 people directly (about 2% of the workforce), and a further 599,680 in support industries. In addition to direct metal and ore exports, the country also is a major developer of mining services, equipment and technology. Mining has had a substantial environmental impact in some areas of Australia.
Oil & Gas
Australia supplies energy resources both internationally and domestically as it has large resources in coal, uranium and natural gas. The oil, gas and energy industries are major contributors to the Australian economy. KPMG Econtech’s economic modelling stated that “the petroleum industry contributed $6.2 billion per annum to the GDP. This is two-thirds the contribution of the textiles, clothing and footwear industries and twice the forestry and fishing industries.”
Australia has invested heavily in the oil, gas and energy industries and with continued population growth and the ever-increasing need for energy, future economic growth is a definite. Not all areas of the country have been fully explored or exploited for oil and gas reserves. Australia has a strong growth potential in expanding productions and increasing exportations.
Across Energy, Mining & Utilities we offer a complete range of consulting, resourcing and capability uplift solutions.
Innovation required to meet the challenges around rising costs, political risks, globalisation and scarcity of mineral facing the mining sector.
Cost pressures in a weak global economy are more acute. Process efficiency and transformation will be key to reversing the trend of sliding productivity and increasing costs.
Market volatility will continue to drive pressure on cost, distribution and market strategies, supply chain management, and sales management processes.
Solving an ever increasing regulatory burden while accessing new and diverse, non-core sectors and markets worldwide.