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Petroleum engineering salary: state and industry differences in Australia
Understand the petroleum engineering salary in Australia. See how state and industry differences affect pay, using the Salary Index benchmark. No precise median published.
No precise median weekly earnings are published for petroleum engineers, but the mining industry index of 154.7 suggests annualised earnings well above the national line of $108,352.
What does "petroleum engineering salary" mean?
When you search for a petroleum engineering salary in Australia, you are looking at the pay for professionals who plan and direct the engineering aspects of locating and extracting oil or natural gas. The occupation is classified under ANZSCO 233612 and is distinct from mining engineers (excluding petroleum). According to Jobs and Skills Australia, there are about 2,400 petroleum engineers employed nationally, with 90% working full-time and an average of 45 hours per week. The median age is 39, and only 18% are women.
Unlike many other occupations, the ABS does not publish median weekly earnings for petroleum engineers. The sample size is too small to produce a reliable figure. This means any discussion of a petroleum engineering salary must rely on indirect benchmarks, such as industry and state indices from the Salary Index.
Where does the petroleum engineering salary sit on the index?
The Salary Index compares annual gross earnings to the national line of full-time adult ordinary-time earnings, which is $2,083.70 per week or $108,352 per year (ABS Average Weekly Earnings, May 2026). That line is set at 100. Most petroleum engineers work in the mining industry, which has an index of 154.7 – meaning the typical mining employee earns about 55% more than the national average, or around $167,500 annualised. The Professional, Scientific and Technical Services industry, which also employs petroleum engineers, has an index of 114.7 (~$124,300).
Because petroleum engineers are a specialised subset within mining, their actual pay is likely higher than the mining industry average. However, without a published median, we cannot give a precise index number. The how the index works page explains how these benchmarks are calculated.
State and industry differences
State of work is a major factor in a petroleum engineering salary. The occupation is heavily concentrated in Western Australia and Queensland, where most of Australia's oil and gas projects are located. The state index for WA is 106.9 ($115,825 annualised), but that is an average across all industries. For mining in WA, the effective index is much higher. In contrast, New South Wales has only 3.8% of petroleum engineers (compared to 7.6% of all occupations), so opportunities there are limited and pay may reflect the lower mining presence.
Industry also matters. The three main industries for petroleum engineers are:
- Mining (index 154.7)
- Professional, Scientific and Technical Services (index 114.7)
- Construction (index not given, but typically above average)
A petroleum engineer working for a consulting firm in the Professional Services sector will likely earn less than one working on a remote offshore rig in the Mining sector. The industries page provides more detail on how different sectors compare.
Award coverage and professional status
It is a common misconception that petroleum engineers are covered by the Hydrocarbons Industry (Upstream) Award 2020. In fact, that award explicitly excludes professional engineers (clause 4.3(d)). The award sets minimum rates for non-professional roles such as technicians and trades – for example, a Level 4 Advanced employee earns $1,193.90 per week plus a $66.70 industry allowance. These rates are not relevant to a petroleum engineering salary, but they do show the floor for support staff in the same industry.
Because petroleum engineers are professionals, their pay is determined by market forces, enterprise agreements, or individual contracts. The superannuation guarantee is 12% from 1 July 2026, and the maximum contribution base is $270,830. For a resident earning $167,500, the estimated take-home pay after tax and Medicare levy (2026–27 rates) would be around $117,000, assuming no HELP debt or other adjustments.
Using the salary index to compare
To put any salary offer in perspective, you can use the Salary Index. Divide the annual gross salary by $108,352 and multiply by 100. For example, a petroleum engineer earning $180,000 would have an index of 166. That is well above the mining industry average of 154.7. The states page shows how your location affects the index, and the pay guides offer more context on award-free roles.
In summary, while a precise petroleum engineering salary figure is not publicly available, the combination of industry (mining) and state (WA or QLD) strongly suggests that petroleum engineers earn well above the national average. Use the industry and state indices as a starting point, but always check current job advertisements and enterprise agreements for the most accurate data.
Questions people ask
What is the average petroleum engineering salary in Australia?
No official median weekly earnings are published for petroleum engineers because the occupation is small (2,400 workers) and the data has a high relative standard error. However, most petroleum engineers work in the mining industry, which has a Salary Index of 154.7 (annualised ~$167,500). This suggests petroleum engineers typically earn well above the national line of $108,352. Actual salaries depend on experience, location, and employer.
How does petroleum engineering salary vary by state?
State differences are significant because petroleum engineers are concentrated in Western Australia and Queensland, where mining dominates. WA has a state index of 106.9 ($115,825 annualised), but mining industry pay is much higher. In contrast, states like Tasmania (index 88.6) have very few petroleum engineering roles. The national average for mining is 154.7, so petroleum engineers in WA and QLD likely earn above that industry average due to fly-in fly-out and remote work allowances.
Are petroleum engineers covered by the Hydrocarbons Industry Award?
No. The Hydrocarbons Industry (Upstream) Award 2020 explicitly excludes 'professional engineers, geologists and scientists' (clause 4.3(d)). Petroleum engineers are classified under ANZSCO 233612 and are considered professionals. Their salaries are set by enterprise agreements or individual contracts, not by this award. The award does provide minimum rates for non-professional roles (e.g., Level 4 Advanced $1,193.90/week plus $66.70 industry allowance), which can serve as a reference for support staff.