By the 1990's Australia could be the largest coal exporter in the world and one of the few industrialised countries potentially able to supply the shortfall in its domestic oil requirements by utilizing its oil shale and coal resources to manufacture synthetic oil. The major challenge to both industry and government in implementing the new role for Australia will be to ensure that their actions and policies enable the timely mobilization of resources needed to meet the potential demand for energy, both domestic and overseas. Australia's potential for coal production and exports and for the production of oil from shale and coal are discussed and the potential constraints to development Examined.