Australia: We're Running Out Of Oil, says Treasurer  

Peter Costello has taken some time off from cooking the books and plotting the Rodent's demise to address the Northern Territory Cattlemen's Association on oil depletion.

Treasurer Peter Costello has delivered a blunt warning that Australia is running out of oil as existing fields near the end of their productive lives.

In a speech to the Northern Territory Cattlemen's Association, Mr Costello said it was little known that Australian exports of fuel had been falling for years despite soaring prices.

"The reason why Australia's crude oil exports have fallen over recent years - while world demand and prices have increased to record levels and LNG exports are booming - is that some of our oilfields are approaching the end of their productive lives," he said.

Total production had fallen from about 650,000 barrels a day to less that 430,000 barrels a day since mid-2002. Some fields - for example the Bonaparte field off Western Australia - are now producing only about a quarter of 2002 levels.