That is the view of Deloitte Australia's lead oil and gas consultant Bernadette Cullinane, who said at the Australasian Oil & Gas conference in Perth that Australia's operators needed to maintain their focus on efficiency, productivity, operational excellence and cost control.
She said that costs and debt levels were down and earnings and free cash flows up following the recovery in the sector, and the need to keep investors and stakeholders happy would now be at a premium.
At the same time, Cullinane said operators must position themselves for what is coming next.
"Our Australian LNG sector will soon take the crown as the largest in the world," she said.
"The industry is becoming more global, digital, diverse and decentralised, while the energy mix for Australia and Asia-Pacific is shifting to lower carbon fuels.
"With such rapid change, it is important for operators and services companies to look to the future and be prepared for the energy transition that is coming around the corner."
Cullinane said technology and innovation would be key to unlocking new deposits, driving sustainable productivity gains and ensuring international competiveness.
She highlighted National Energy Resources Australia's announcement of support for seven innovative oil and gas projects with a specific emphasis on artificial intelligence, data analytics, data science and digitalisation.
Cullinane said the oilfield services sector had taken a particular hit from the recent downturn in the industry and the main question hanging over its future was whether to diversify further, including into renewables.
Optimisation of assets was a big issue for their owners and for engineering companies who supported them, with data science being increasingly employed in a risk-based approach to monitoring and analysing.
And the tension between Australia's LNG exporters and domestic consumers seen in 2017 would continue to be an issue, with the Australian Domestic Gas Security Mechanism signed last year not a long-term solution.
"The sector needs a strong energy policy and a supportive regulatory framework that provides clear signals to investors/producers to undertake the necessary long-term investments in new supply," Cullinane said.
The Deloitte partner also highlighted the importance of diversity and inclusion, managing trends toward automation and repositioning toward the benefits of the new energy economy of increasing renewables, battery storage.
