Gas is in for a boom! ( The transtion Fuel, Life after peak oil)

[tricha]

When whales ran out we found oil.

Now conventional oil has peaked, we have gas, any gas. There is an abundance of gas left on the planet.
200 years apparently.

Compared to oil and coal, it is clean energy.
It is happening now and I aim to be in.

Ken Fisher has already stated it, Bermuda has been saying this for a few years now.
I will be Focusing on it and I aim to profit on it.

Reading this article set it in cement.

Flaming nuclear reactors + choking coal = natural gas boom (http://oilandglory.foreignpolicy.com/posts/2011/03/16/flaming_nuclear_reactors_choking_coal_natural_gas_ boom)
Posted By Steve LeVine http://www.foreignpolicy.com/images/091022_meta_block.gif Wednesday, March 16, 2011 - 12:40 PM


http://oilandglory.foreignpolicy.com/files/nukeimage_picnik.jpg
For some months, we've cast doubt (http://oilandglory.foreignpolicy.com/posts/2011/01/27/exxon_mobil_goodbye_coal_hello_natural_gas) on widely accepted forecasts of a humongous rise in the global consumption of coal. Instead, we've foreseen a massive global shift to far-cleaner natural gas-fired electricity. In doing so, we have relied on a basic assumption: That governments aren't ordinarily suicidal. Based on that rule of thumb, it's been straight-forward to see China's Communist Party -- wishing to remain in power -- not following the steep trajectory of coal consumption growth built into the energy and economic models of our leading institutions (see charts below), but instead a far-less aggressive growth pattern. Why? Because the increasingly aspirational Chinese population has made clear in recent years that it won't tolerate choking and deadly pollution. If China adheres to the existing growth models, China's cities will become those choking, blind, airless -- and socially turbulent -- population centers, and potentially jeopardize the Communist Party's authority. Hence, we've suggested discarding the coal models sitting in your queues.
But now a report from Bernstein Research suggests a mistake in these presumptions. Bernstein foresees the same shift to natural gas as we do, but ties it to the black-swan event we are witnessing before our eyes -- the nuclear power disaster in Japan. "It could be that the Honshu earthquake is the catalyst which fundamentally reshapes our approach to global energy," Bernstein says in a note to clients.
In short, Bernstein forecasts a shift from planned nuclear reactor rollouts to a gas boom (details below). If Bernstein is right -- other analysts predict (http://oilandglory.foreignpolicy.com/posts/2011/03/14/kabbosh_on_nuclear_renaissance_not_so_fast) an interregnum while safety concerns are addressed, and then a revived nuclear buildout -- it isn't coal alone that will drive an anti-suicidal shift to natural gas, but nuclear power as well, specifically the specter of explosions and fires at nuclear reactors. This is the calculus you arrive at when you twin the above set of observations with the super-glut of natural gas around the world -- shale gas from the United States, plus liquefied natural gas from Qatar, Australia, and elsewhere. You get a supply-driven demand response. China is already projected to use much more gas in coming years -- depending on the forecast, from six to ten times its current consumption -- but these unaccounted-for realities on the ground mean it will lap up the gas at an even higher rate.
Read on http://www.foreignpolicy.com/images/091023_subject_arrow.gif (http://oilandglory.foreignpolicy.com/posts/2011/03/16/flaming_nuclear_reactors_choking_coal_natural_gas_ boom)

[skeet]

LNG Shipping companies will boom, cant find any on ASX tho...

[Huang Chung]

/
For some months, on widely accepted forecasts of a humongous rise in the global consumption of coal. Instead, we've foreseen a massive global shift to far-cleaner natural gas-fired electricity. In doing so, we have relied on a basic assumption: That governments aren't ordinarily suicidal. Based on that rule of thumb, it's been straight-forward to see China's Communist Party -- wishing to remain in power -- not following the steep trajectory of coal consumption growth built into the energy and economic models of our leading institutions (see charts below), but instead a far-less aggressive growth pattern. Why? Because the increasingly aspirational Chinese population has made clear in recent years that it won't tolerate choking and deadly pollution. If China adheres to the existing growth models, China's cities will become those choking, blind, airless -- and socially turbulent -- population centers, and potentially jeopardize the Communist Party's authority. Hence, we've suggested discarding the coal models sitting in your queues.


If Chinese cities are / become 'choking, blind, airless population centres', it's because of the automobile. Power stations don't have to be located in the cities.

Coal is the cheapest base load power source, and will remain an integral part of most nations power needs.

[Financially dependant]

Gas is without doubt the transitional fuel, a lot of existing infrastructure can use it including transport and power generation as oil gets scarce and expensive. 200 years I don't think so....exponential growth on consumption will reduce that to a few decades.

As Skeet says LNG is booming...

[JBmurc]

This pie chart gives a good Idea where the biggest energy user gets its power from..Nat Gas makes up more that I thought prices still sub $4 talk about out of favour sector of energy

[shasta]

Exactly JBMurc

Conventional gas is cheap as chips in Australia as its in abundance* & given the rapid drop off rates it doesnt take much to be uneconomical, hence the rush to LNG to sell at a premium into the Asian market

* Remember the WA gas permits that have been left alone waiting for higher gas prices & the Govt gave them the use it or lose it ultimatum?

Dirty old black coal has been given a 20 - 25 year reprieve by the Japan situation, & lets face it a massive quake & tsunami would bring a hydro dam down, knock out gas plants etc, it just happened to be a nuclear plant that got hit.

Uranium has a vital part to play & has been used in the UK, France, Germany & elsewhere without issues, i mean how many coal mines have exploded around the world of late, (not just Pike, but in China & South Africa etc) yet coal is still going strong?

If anything, this uncertainly will only push oil prices higher rather than conventional gas

Position yourselves accordingly ;)

[tricha]

Gas is without doubt the transitional fuel, a lot of existing infrastructure can use it including transport and power generation as oil gets scarce and expensive. 200 years I don't think so....exponential growth on consumption will reduce that to a few decades.

As Skeet says LNG is booming...

It would have made a better title FD, Gas the Transitional Fuel. Can we still change titles, my last 10 attempts failed.:mad ;:

I need some help here, on page 6 of this report is a good picture, I can not seem to post it here.
Can anyone one out there please help :confused:

http://www.drillsearch.com.au/LinkClick.aspx?fileticket=MHBj1QzWQvo%3d&tabid=2307&language=en-AU


Thats the key FD - "including transport " thats where coal misses the boat Huang.
Gas will have to go higher Shasta, conventional oil production has peaked, oil will have to go higher.
So there u go JB, PSA will be in the money again soon.

Do we have a list of prefered gas producers folks.

I will start with

PSA
STO
OSH
PSA
DLS
BPT

Then we can rate them as , The good, bad and ugly.

P.S LNG shipping companies, great idea Skeet!

[shasta]

It would have made a better title FD, Gas the Transitional Fuel. Can we still change titles, my last 10 attempts failed.:mad ;:

I need some help here, on page 6 of this report is a good picture, I can not seem to post it here.
Can anyone one out there please help :confused:

http://www.drillsearch.com.au/LinkClick.aspx?fileticket=MHBj1QzWQvo%3d&tabid=2307&language=en-AU


Thats the key FD - "including transport " thats where coal misses the boat Huang.
Gas will have to go higher Shasta, conventional oil production has peaked, oil will have to go higher.
So there u go JB, PSA will be in the money again soon.

Do we have a list of prefered gas producers folks.

I will start with

PSA
STO
OSH
PSA
DLS
BPT

Then we can rate them as , The good, bad and ugly.

P.S LNG shipping companies, great idea Skeet!

Other conventional gas companies to add to the list PVE, STX, & AMU (if its still around, currently a takeover target)

[macduffy]

And we should add AWE whose gas provided about two thirds of last half's 3.1 mbboe. (BassGas, Casino/Henry/Netherby, Onshore Perth Basin, Onshore USA).

[skeet]

Good reading here on LNG Shipping:

http://en.wikipedia.org/wiki/LNG_carrier

At the moment there is a boom in the fleet, with a total of more than 140 vessels on order at the world's shipyards. Today the majority of the new ships under construction are in the size of 120,000 m³ to 140,000 m³. But there are orders for ships with capacity up to 260,000 m³. As of 6 March 2010, there are 337 LNG ships engaged in the deepsea movement of LNG

and

http://www.rivieramm.com/publications/LNG-World-Shipping-3

[tricha]

Good reading here on LNG Shipping:

http://en.wikipedia.org/wiki/LNG_carrier

At the moment there is a boom in the fleet, with a total of more than 140 vessels on order at the world's shipyards. Today the majority of the new ships under construction are in the size of 120,000 m³ to 140,000 m³. But there are orders for ships with capacity up to 260,000 m³. As of 6 March 2010, there are 337 LNG ships engaged in the deepsea movement of LNG

and

http://www.rivieramm.com/publications/LNG-World-Shipping-3

Thats a good sign, gas is going to be key to energy going foward.
I've given up trying to find a great oil company, :mad ;:, I'm going for gas as a transition energy, OZ have quite a few and I want a great one, listening between the lines it is becoming clear.


Chris Nelder talks OPEC's spare capacity and $120 oil tipping point

http://www.financialsense.com/financial-sense-newshour/guest-expert/2011/03/24/chris-nelder/opec-spare-capacity-120-dollar-oil-tipping-point

[macduffy]

I've given up trying to find a great oil company, , I'm going for gas as a transition energy, OZ have quite a few and I want a great one, listening between the lines it is becoming clear.




I thought that you'd sorted out BPT as your preferred energy company, tricha?

When/if their shale gas contingent resource attains 2P Reserve status, gas will comprise over 80% of their reserves with oil a comparatively minor contributor.

Personally, I'm spreading my bets between STO, AWE, BOW, CUE and yes, a few BPT!

[Arbitrage]

History shows that it wasn't the miners that made the money during gold rushes, but the guy who sold them the shovels. Therefore buying shares in APA may be a better bet.

[tricha]

History shows that it wasn't the miners that made the money during gold rushes, but the guy who sold them the shovels. Therefore buying shares in APA may be a better bet.

You are most likely right Abitirage, personally I find these sort of stocks not my cup of tea, I'm hunting for multi baggers, which are getting harder to find.
It may be something to do with the gambler in me.

[tricha]

I thought that you'd sorted out BPT as your preferred energy company, tricha?

When/if their shale gas contingent resource attains 2P Reserve status, gas will comprise over 80% of their reserves with oil a comparatively minor contributor.

Personally, I'm spreading my bets between STO, AWE, BOW, CUE and yes, a few BPT!

WELL Macduffy, a few Beach, did u get lucky and buy them at 80 cents.? Yes Beach is my preffered energy company, but everything is changing and there is always room for re-ratings.
I have gone right off AWE due to their huge cash burn and poor results.

What do you make of this graph on page 6 of this report, from Drillsearch. Do you have a perspective on Drill Search, they were a dog, but have they changed ?? for the better.

Comparison to Peers of Enterprise Value to 2P Reserves

http://www.stocknessmonster.com/news-item?S=DLS&E=ASX&N=628197

[shasta]

WELL Macduffy, a few Beach, did u get lucky and buy them at 80 cents.? Yes Beach is my preffered energy company, but everything is changing and there is always room for re-ratings.
I have gone right off AWE due to their huge cash burn and poor results.

What do you make of this graph on page 6 of this report, from Drillsearch. Do you have a perspective on Drill Search, they were a dog, but have they changed ?? for the better.

Comparison to Peers of Enterprise Value to 2P Reserves

http://www.stocknessmonster.com/news-item?S=DLS&E=ASX&N=628197

Tricha - A gas stock that might be of interest to you, is Shrewd's baby NGE - gas in PNG (OSH alredy over there)

High risk v high reward

[macduffy]

What do you make of this graph on page 6 of this report, from Drillsearch. Do you have a perspective on Drill Search, they were a dog, but have they changed ?? for the better.


I havn't looked at DLS for some time but they would now warrant closer attention, I suspect.

Their prospects are almost exclusively in the Cooper Basin as is BPT's big contingent resource - in fact they share some acreage there. A case could be made for holding DLS in preference to BPT on a potential value basis. If, as I do, you regard BPT as essentially a play on their Cooper unconventional gas, success here should also cause a re-rating for DLS, particularly as their M/Cap is a fraction of BPT's.

No, I didn't buy BPT at 80c but pleased to say that recent firming in the SP has put me slightly in front there!

[tricha]

Tricha - A gas stock that might be of interest to you, is Shrewd's baby NGE - gas in PNG (OSH alredy over there)

High risk v high reward

Sovereign risk, Shrewdie is a lot younger than us, I guess it has a lot to do with what risk one would like to participate in.

Myself not anywhere in PNG, OSH otherwise would be on top of the list.

[shasta]

Sovereign risk, Shrewdie is a lot younger than us, I guess it has a lot to do with what risk one would like to participate in.

Myself not anywhere in PNG, OSH otherwise would be on top of the list.

You dont think BPT's scattergun approach isn't at least medium risk, Albania, Spain, Egypt, etc? (Yeah sure they have Australian assets, but still).

I still personally can't go past OEL for an O&G stock (well brent oil only) in the Phillipines, i know you were in them previously.

Brent price above $US110/bbl certainly helps ;)

[macduffy]

You dont think BPT's scattergun approach isn't at least medium risk, Albania, Spain, Egypt, etc? (Yeah sure they have Australian assets, but still).



Despite BPT management's enthusiasm for Tanzania and Egypt particularly, I don't think that the market puts much value on these relatively small side bets. BPT remains very much a Cooper Eromanga play, in fact a big bet on its big contingent "unconventional gas" resource being capable of conversion to reserve status and ultimately to production. I'm happy to go along with that meanwhile.

[ELYOB]

Bpt dont really spell it out very well . Tight gas in the shales is their big gamble for the big time , in the medium term . They want some US major to get interested ! So they need success through the pilot plant point later this year to finally get a party interested . Otherwise it is back to the conventional plays . BPT can soon become a big cash burner; and they have a lot of paper out there!

[macduffy]

I agree with all of that, ELYOB.

For me, BPT is a very small bet on a potentially big payout and far from my own preferred energy stock. But I want a small stake there just in case they can come up with the goods!

[tricha]

Gas, it's happening, looks like I was to slow on this one. I better get my list together sooner than later.

WPLWoodside Petroleum Limited FPOhttp://www.stocknessmonster.com/images/australia.gif http://www.stocknessmonster.com/chart/stockness/hist2/ASX/WPL/1y/line/30/0/

[tricha]

End game for oil, have u got some gas. Does TAP fit the bill ???

Matt Millar discusses natural gas, it's a great Sunday listen.

http://www.financialsense.com/financial-sense-newshour/guest-expert/2011/04/07/matthew-millar/natural-gas-how-to-make-it-a-viable-transportation-fuel

[hal]

End game for oil, have u got some gas. Does TAP fit the bill ???

Matt Millar discusses natural gas, it's a great Sunday listen.

http://www.financialsense.com/financial-sense-newshour/guest-expert/2011/04/07/matthew-millar/natural-gas-how-to-make-it-a-viable-transportation-fuel

My favourite for gas is Buru(bru) who have the Canning Basin leases in the Kimberley Region of Western Australia. They have had gas/condensate finds but they have to make it flow. This is the year though where they will have a good chance to make it happen.

Excellent partner in Mitsubishi and also funding from Alcoa(offset by supply of gas when(& if) they start producing.

Also a chance of oil as they already have oil production on their leases. They will have at least 2 rigs working on their leases this year

[tricha]

My favourite for gas is Buru(bru) who have the Canning Basin leases in the Kimberley Region of Western Australia. They have had gas/condensate finds but they have to make it flow. This is the year though where they will have a good chance to make it happen.

Excellent partner in Mitsubishi and also funding from Alcoa(offset by supply of gas when(& if) they start producing.

Also a chance of oil as they already have oil production on their leases. They will have at least 2 rigs working on their leases this year

Another one for the list.

Natural Gas = key to transition from oil, forget oil in Australia, there is not much left, forget oil anywhere else, to much soverign risk. But Gas, we are cooking.

Boon Pickens on cooking

http://www.bloomberg.com/video/68368976/

[tricha]

Another one for the list.

Natural Gas = key to transition from oil, forget oil in Australia, there is not much left, forget oil anywhere else, to much soverign risk. But Gas, we are cooking.

Boon Pickens on cooking

http://www.bloomberg.com/video/68368976/

Great stuff, LPG is going to take of again. Hunt out the next big thing on the ASX. :)

Gas tank a golden chance

By Maria Slade (http://www.nzherald.co.nz/maria-slade/news/headlines.cfm?a_id=358)


5:30 AM Sunday Apr 17, 2011
http://media.nzherald.co.nz/webcontent/image/jpg/201116/SCCZEN_140411HOSSPLLPG_220x147.JPG Expand
(http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10719860#)The revolutionary new flatpack LPG tank designed by Kiwi Peter Ellmers. Photo / Supplied



A lawnmower mechanic is on the verge of making his fortune after selling his design for a flat LPG tank to an Australian car maker.
The deal could make millions for the venture's Kiwi backers, and spark interest from other large manufacturers searching for alternative fuel technologies.
Peter Ellmers and his Auckland-based company Propane Performance Industries (PPI) have spent eight years developing the flat tank, which takes up less room than round ones. The car company, which cannot yet be identified because of a confidentiality agreement, will launch a range of LPG-dedicated large cars in August.
Ellmers said testing showed the vehicles could go 850km on one tank of LPG at a cost of about $40, without any loss in performance.
Once production starts in July, PPI's Chinese manufacturers will turn out 80 tanks a day.
The technology was developed by an American munitions and rocket motor manufacturer.
Ellmers, who has spent his working life in the family lawnmower business on Wellington's Cuba St, went to see them after reading about the flat tank on its website - and came away with the world rights to commercialise it.
Article continues below


"It kind of blew me away because I didn't have anything, really - just a dream and the chit-chat, I suppose."
There followed years of testing and a lot of cash turning the technology into a commercial proposition.
The American company sent equipment needed to make the tanks to Brisbane boatbuilder Guy Obren, an old school friend of Ellmers' and an investor in the business. The Australian deal was a major stepping stone for PPI because it meant other car companies would now trust it. The investment had been huge, Ellmers said. "You've just got to be convinced about the whole thing."
By Maria Slade (http://www.nzherald.co.nz/maria-slade/news/headlines.cfm?a_id=358) | Email Maria (http://dynamic.nzherald.co.nz/feedback/author/index.cfm?a_id=358&objectid=10719860)

[JBmurc]

Yeah I use to have a dedicated LPG 300hp v8 falcon sedan use to be a great cheap runner thing is LPG has a higher octane so can handle a higher piston compression which equals more power
I do remember the motor would get hotter quicker a good cooling system would have fixed it though..

[Crypto Crude]

Originally Posted by shasta
Tricha - A gas stock that might be of interest to you, is Shrewd's baby NGE - gas in PNG (OSH alredy over there) High risk v high reward



tricha-Sovereign risk, Shrewdie is a lot younger than us, I guess it has a lot to do with what risk one would like to participate in.




well,
osh is running nicely and png is set to explode...
nothings perfect, dont know why soverign risks even an argument if you look at the facts....
stack paper...
:cool:
.^sc

[elZorro]

Yeah I use to have a dedicated LPG 300hp v8 falcon sedan use to be a great cheap runner thing is LPG has a higher octane so can handle a higher piston compression which equals more power
I do remember the motor would get hotter quicker a good cooling system would have fixed it though..

JB, I tried a CNG kit in a small car in the eighties, that was a bad idea. Sponsored by govt, but it dropped the backside of the car, had to put in gas shocks. Then the power of the car dropped by another 30%, as CNG doesn't have the same power output as petrol. Couldn't get the car tuned to run any good (cowboy mechanics did many of these conversions), so it was all turfed out. LPG is a much better fuel, do we have much of our own though? Not enough for a huge power station, as Genesis were looking to import LPG a few years back.

The CNG use was part of the take-or-pay contract for the huge gas supplies coming from Maui. They had to draw off the gas, to get at the smaller quantities of oil.

Here's a 2002 LPG article mentioning your model car JB. (http://www.crownminerals.govt.nz/cms/pdf-library/petroleum-conferences-1/2002-nz-petroleum-conference-proceedings/mulvena-1090-kb-pdf)

[JBmurc]

JB, I tried a CNG kit in a small car in the eighties, that was a bad idea. Sponsored by govt, but it dropped the backside of the car, had to put in gas shocks. Then the power of the car dropped by another 30%, as CNG doesn't have the same power output as petrol. Couldn't get the car tuned to run any good (cowboy mechanics did many of these conversions), so it was all turfed out. LPG is a much better fuel, do we have much of our own though? Not enough for a huge power station, as Genesis were looking to import LPG a few years back.

The CNG use was part of the take-or-pay contract for the huge gas supplies coming from Maui. They had to draw off the gas, to get at the smaller quantities of oil.

Here's a 2002 LPG article mentioning your model car JB. (http://www.crownminerals.govt.nz/cms/pdf-library/petroleum-conferences-1/2002-nz-petroleum-conference-proceedings/mulvena-1090-kb-pdf)

Well this is the thing from my understanding we do have some very large prospective Nat gas resources and we really are underexplored..............
L&M found onshore Gas in southland recently --TAP,ROC had a permit offshore chch they believed could hold TCF size Gas ..........the great southern basin is well known to be a very large structure that had some exploration years back --old work mate had worked on the rigs believed thay had found huge Oil&Gas
but as we are so far from the markets very few majors that have the hundreds of millions to throw aren't all that interested to do anything soon ..

[STRAT]

JB, I tried a CNG kit in a small car in the eighties, Then the power of the car dropped by another 30%, as CNG doesn't have the same power output as petrol. Couldn't get the car tuned to run any good.Hi EZ.
I remember these well.
They were shockers but to be fair the mixing technology available was very poor and tuning options a poor compromise. Gas supply was nothing more than a pipe stuck in a hole drilled into the Carb or Air Filter housing. Could be done again and better.

[elZorro]

Hi EZ.
I remember these well.
They were shockers but to be fair the mixing technology available was very poor and tuning options a poor compromise. Gas supply was nothing more than a pipe stuck in a hole drilled into the Carb or Air Filter housing. Could be done again and better.

Hi Strat, in my case my motor was blown up on the dyno when running it without a fan, as they tried to tune it some months after installation. With plugs and points back then, the timing had to be a compromise, but now the electronic ignition would detect pinging and fix all that automatically (petrol/CNG difference). But I think there is less energy in CNG per unit, than in LPG, and LPG is closer to the petrol brew in composition, so it will likely be a lot better for car motors. Send CNG to Huntly instead, or use it for space heating (then you get closer to 100% of the energy out too).

[tricha]

well,
osh is running nicely and png is set to explode...
nothings perfect, dont know why soverign risks even an argument if you look at the facts....
stack paper...
:cool:
.^sc

When u get a bit older Shrewdy, your perception of soverign risk will also change. OSH has huge potential, at your age u can afford to take a more risky approach.

In the mean time we are moving fast to transition time and the Chinese are very aware. From what I can see, there is not much oil left to be found in Australia, but there is huge potential for gas, conventional gas, coal seam gas and shale gas. The key for us is to identify which stocks offer the most potential ASAP.

Chinese sign up for big Qld gas deal

The West Australian April 21, 2011, 3:10 pm


http://l.yimg.com/fv/xp/wan/20110411/13/1120697108.jpg (http://l.yimg.com/fv/xp/wan/20110411/13/1120697108.jpg) The West Australian ©




The Australia Pacific Liquefied Natural Gas joint venture has converted a non-binding liquefied natural gas sales deal with China's Sinopec to a binding deal.
The partners, Origin Energy and ConocoPhillips, in February sold a combined 15 per cent stake in the Queensland-based APLNG project to Sinopec, which also agreed to buy up to 4.3 million tonnes per annum of LNG from the project for 20 years under a non-binding deal.
The project equity sale leaves the Australian and American firms with 42.5 per cent interest each in APLNG.
Sinopec was welcomed as a joint venture partner with a signing ceremony in Brisbane.
Resources minister Martin Ferguson said it was the biggest single LNG sales and purchase agreement by annual volume in Australian history.
"Deals like this one put Australia on track to be one of the world's largest suppliers of LNG in coming years," Mr Ferguson said.
"The APLNG project has the potential to significantly expand the burgeoning coal seam gas to LNG industry on Australia's east coast and cement Gladstone's place as a key LNG hub."
APLNG chairman and Origin managing director Grant King said the joint venture was engaged with potential buyers for gas from a second processing "train".
Mr King in February said the company may sell down more of its stake in the project to future LNG buyers.
Mr King said the joint venture would not give a running commentary on current gas marketing efforts.
But ConocoPhillips senior vice president exploration and production Ryan Lance said APLNG was largely targeting the Asian region.
"The large buyers in Japan and Korea down through China to India as well," Mr Lance said.
Mr Ferguson said China was Australia's second-largest LNG customer and the Sinopec deal brought new and existing LNG contracts with the Asian superpower to more than 15 million tonnes per annum.
The APLNG project will involve the progressive development of coal seam gas fields in south central Queensland over a 30-year period and a 450km transmission pipeline from the gas fields to Curtis Island near Gladstone, where an LNG facility will be built.
Federal Environment Minister Tony Burke gave the project the green light on February 22.


Follow thewest.com.au on Twitter (http://twitter.com/thewest_com_au)

[bermuda]

Tricha,
This is huge news for the CSG doubters............ And huge news for holders of CSG stocks. Might take a while but what's a couple of years. Even our dear Woodside are predicting a gas shortfall. ( at a time when the uneducated are saying there is a glut ).

Apparently it is one of the biggest LNG deals ever done. Far out.

[tricha]

Tricha,
This is huge news for the CSG doubters............ And huge news for holders of CSG stocks. Might take a while but what's a couple of years. Even our dear Woodside are predicting a gas shortfall. ( at a time when the uneducated are saying there is a glut ).

Apparently it is one of the biggest LNG deals ever done. Far out.

Hi Bermuda

Yeah huge for CSG, but does shalegas come into play as WELL, it does in the States, will it catch on here in OZ.
For the likes of Drillsearch, Beach and Senex with huge plays in the Cooper, does it mean they can supply gas via pipeline to Gladestone ???

April 28, 2011
Early Mover Advantage Starts To Pay Off For Aurora Oil & Gas As Its Eagle Ford Shale Wells Reveal The Quality Of Its Acreage Position


When Aurora (http://www.oilbarrel.com/companies/details0/company/aurora-oil-gas-limited.html) Oil & Gas drilled its first well in the Sugarkane field in Texas back in 2005 nobody suspected the ASX-quoted small cap would six years later be a much larger cap company with a front seat in one of the hottest shale plays in North America. That play is, of course, the Eagle Ford Shale in southern Texas and the reason no one suspected Aurora (http://www.oilbarrel.com/companies/details0/company/aurora-oil-gas-limited.html) would present such a key investment opportunity for those seeking exposure to this liquids-rich shale is because the company’s first wells here were actually targeting the gas-bearing Austin Chalk formation.


Those initial wells also identified the potential of the deeper shale play and encouraged the company to build a lease position in the area, giving it real early mover advantage in an area where acreage parcels are now changing hands for increasingly inflated prices; M&A activity remains strong with US$5.5 billion in transactions announced since June 2010. Aurora (http://www.oilbarrel.com/companies/details0/company/aurora-oil-gas-limited.html), which is now dual listed on the ASX and TSX, has working interests ranging from 9.1 per cent to 36.4 per cent in four...

[tricha]

Bermuda who is your mosy prefferd gas play and why. Senex looks like it has got huge potential ???
Improving fundamentals of natural gas vs declining reserves (http://www.financialsense.com/financial-sense-newshour/guest-expert/2011/05/05/bill-powers/update-on-energy)

Bill Powers update on energy

http://www.financialsense.com/financial-sense-newshour/guest-expert/2011/05/05/bill-powers/update-on-energy


http://www.financialsense.com/sites/default/files/images/fsn/energy-update/energy_icon.gif

Newshour, Guest Expert RealPlayer (http://www.netcastdaily.com/broadcast/fsn2011-0505-1.ram) WinAmp (http://www.netcastdaily.com/broadcast/fsn2011-0505-1.m3u) Windows Media (http://www.netcastdaily.com/broadcast/fsn2011-0505-1.asx) MP3 (http://www.netcastdaily.com/broadcast/fsn2011-0505-1.mp3)


Saudi Arabia cutting production; improving fundamentals of natural gas; falling dollar's impact on energy and energy stocks; worsening stagflation

John Loeffler (http://www.financialsense.com/user/503) With Bill Powers (http://www.financialsense.com/user/187)






Hi Bermuda

Yeah huge for CSG, but does shalegas come into play as WELL, it does in the States, will it catch on here in OZ.
For the likes of Drillsearch, Beach and Senex with huge plays in the Cooper, does it mean they can supply gas via pipeline to Gladestone ???

April 28, 2011
Early Mover Advantage Starts To Pay Off For Aurora Oil & Gas As Its Eagle Ford Shale Wells Reveal The Quality Of Its Acreage Position


When Aurora (http://www.oilbarrel.com/companies/details0/company/aurora-oil-gas-limited.html) Oil & Gas drilled its first well in the Sugarkane field in Texas back in 2005 nobody suspected the ASX-quoted small cap would six years later be a much larger cap company with a front seat in one of the hottest shale plays in North America. That play is, of course, the Eagle Ford Shale in southern Texas and the reason no one suspected Aurora (http://www.oilbarrel.com/companies/details0/company/aurora-oil-gas-limited.html) would present such a key investment opportunity for those seeking exposure to this liquids-rich shale is because the company’s first wells here were actually targeting the gas-bearing Austin Chalk formation.


Those initial wells also identified the potential of the deeper shale play and encouraged the company to build a lease position in the area, giving it real early mover advantage in an area where acreage parcels are now changing hands for increasingly inflated prices; M&A activity remains strong with US$5.5 billion in transactions announced since June 2010. Aurora (http://www.oilbarrel.com/companies/details0/company/aurora-oil-gas-limited.html), which is now dual listed on the ASX and TSX, has working interests ranging from 9.1 per cent to 36.4 per cent in four...

[bermuda]

Thanks for that Powers report.
Senex ( SXY ) has a huge Shale Gas play coming up but also have a look at ADE and NWE. NWE are about to drill Arrowsmith*2 in Western Australia. Arrowsmith*1 was drilled back in the 80's and flowed 4mmcft/day initially before it tapered off. Arrowsmith*2 is going to be fracced and has attracted Bharat Petroleum ( a Fortune 500 company ) and AWE as partners. Apparently the Auusie shales are every bit as good as those in the USA....As always the drill bit does the talking and it will be speaking very soon.

Watch this space.

[tricha]

Thanks for that Powers report.
Senex ( SXY ) has a huge Shale Gas play coming up but also have a look at ADE and NWE. NWE are about to drill Arrowsmith*2 in Western Australia. Arrowsmith*1 was drilled back in the 80's and flowed 4mmcft/day initially before it tapered off. Arrowsmith*2 is going to be fracced and has attracted Bharat Petroleum ( a Fortune 500 company ) and AWE as partners. Apparently the Auusie shales are every bit as good as those in the USA....As always the drill bit does the talking and it will be speaking very soon.

Watch this space.

I have three gas plays, BPT, DLS and Tap. Actually oil and gas, but the gas will propell them. Make up your own mind.

FOREWORD: Will Natural Gas Fuel America in the 21st Century?
http://www.postcarbon.org/article/330223-foreword-will-natural-gas-fuel-america

Posted May 12, 2011 by Richard Heinberg (http://www.postcarbon.org/person/36200-richard-heinberg)

[tricha]

Why gas will boom in OZ.

Apache plans $10bn gas investment into Australia

http://www.theage.com.au/business/apache-plans-10bn-gas-investment-into-australia-20110518-1et71.html

[tricha]

The transition is coming down the track, it could reach terminal velocity soon, theres a big question to be answered :confused:


Energy Agency Calls for Rise in World Oil Output
By MATTHEW SALTMARSH (http://topics.nytimes.com/top/reference/timestopics/people/s/matthew_saltmarsh/index.html?inline=nyt-per)

Published: May 19, 2011

(http://www.nytimes.com/adx/bin/adx_click.html?type=goto&opzn&page=www.nytimes.com/yr/mo/day/business&pos=Frame4A&sn2=a23bc051/6ffe8c2e&sn1=2707892b/83736939&camp=foxsearch2011_emailtools_1629901c_nyt5&ad=sf_120x60_mar29&goto=http%3A%2F%2Fwww%2Efoxsearchlight%2Ecom%2Fsno wflowerandthesecretfan)



PARIS — Expressing “serious concern” about elevated crude oil prices, the International Energy Agency on Thursday called for an increase in world oil production. It was an unusual move that highlighted consumer countries’ frustration at the failure of oil-producing nations to lift output in the face of rising demand and tighter supply.
Analysts suggested that the agency, which usually does not comment on oil producers’ policies, was signaling a shift in stance to become more confrontational toward the main producers over their failure to increase the flow of oil to world markets.
The call for added production also appears to be a move by the agency, which represents 28 developed economies, to distance itself from the period under its departing chief, Nobuo Tanaka. It was seen by many as too accommodating to Saudi Arabia, and too content to accept the Organization of the Petroleum Exporting Countries’ narrative of blaming speculation, rather than market fundamentals, for high prices.
The agency’s monthly Oil Market Report, respected by industry practitioners, has recently been warning about tightening market conditions as supply has not caught up with strong demand.
After a two-day meeting, the International Energy Agency’s governing board issued a statement expressing “serious concern” at “growing signs that the rise in oil prices since September is affecting the economic recovery by widening global imbalances, reducing household and business income and placing upward pressure on inflation and interest rates.”
As global demand for oil typically increases from May to August, “there is a clear, urgent need for additional supplies on a more competitive basis to be made available to refiners to prevent a further tightening of the market,” it said.
The agency’s board also said it was prepared “to consider using all tools that are at the disposal of I.E.A. member countries.” That was seen by analysts as a veiled warning to OPEC (http://topics.nytimes.com/top/reference/timestopics/organizations/o/organization_of_petroleum_exporting_countries/index.html?inline=nyt-org) that the agency could, in an extreme case, call for its member countries to agree to release emergency oil stocks if the market situation deteriorated.
“So far there hasn’t been much reaction in the West to the high prices,” said Leo Drollas, chief economist at the Center for Global Energy Studies in London. “It now looks like they are being more assertive.”
Oil prices, which have been climbing since the end of last summer, have risen more sharply this year amid turmoil in North Africa and the Middle East. Light, sweet crude for July delivery fell $1.66 to $98.44 a barrel on Thursday in New York. It rose to almost $115 in April.
Despite commitments from Saudi Arabia, the biggest OPEC producer, to use its spare capacity to increase output and replace the supplies lost because of the uprising in Libya, the cartel’s production is now running 1.3 million barrels a day below the level seen before the crisis, according to the I.E.A. :confused::confused::confused::confused::confused:

[modandm]

Hey guys, I have been reading into the LNG story a bit and really like the prospects. I have bought some WPL for exposure and am interested in:

1. Are there any other majors you would buy for LNG exposure besides WPL - and not just for diversification - i.e only want to buy another if there is a genuine reason to - otherwise will buy more WPL. Most analysts rate WPL. Also I have some exposure through BHP.

2. Are there any service companies who are particularly exposed to LNG - WOR, UGL etc - and do you think the competition in this sector from major offshore contractors is going to depress margins and make this sector not worth investing in?

3. I notice there are now shipyards producing LNG powered ships. Are there any LNG using product producers on the ASX? e.g a company that converts/makes trucks to LNG power?

[tricha]

Hey guys, I have been reading into the LNG story a bit and really like the prospects. I have bought some WPL for exposure and am interested in:

1. Are there any other majors you would buy for LNG exposure besides WPL - and not just for diversification - i.e only want to buy another if there is a genuine reason to - otherwise will buy more WPL. Most analysts rate WPL. Also I have some exposure through BHP.

2. Are there any service companies who are particularly exposed to LNG - WOR, UGL etc - and do you think the competition in this sector from major offshore contractors is going to depress margins and make this sector not worth investing in?

3. I notice there are now shipyards producing LNG powered ships. Are there any LNG using product producers on the ASX? e.g a company that converts/makes trucks to LNG power?

Good choice modandm, Woodside is an excellent stock, most of us on this site tend to go for high risk stocks, we each have our choices, there are many up and coming good prospects.
But one thing is sure, there is huge momentum in gas, oil is now getting so hard to find.

20 May 2011 Last updated at 06:31 GMT
Shell to build Australian giant floating gas platform
http://news.bbcimg.co.uk/media/images/52847000/jpg/_52847629_85815450.jpg A liquefied natural gas ship tanker arrives at a gas storage station in Japan
Continue reading the main story (http://www.bbc.co.uk/news/13465892#story_continues_1) Related Stories


EU denies Russia-Asia gas rivalry (http://www.bbc.co.uk/news/world-europe-12425614)
Shell sets out new growth targets (http://www.bbc.co.uk/news/business-12747787)

Oil firm Royal Dutch Shell has announced it will build the world's first floating liquefied natural gas (LNG) plant.
The Prelude project was announced on Friday and analysts believe it could cost between $8bn (£4.9bn) and $15bn.
It will provide 3.6m tonnes of gas per annum to meet growing Asian demand and come on-stream in 2016.
The plant will be moored 200km from the Australian coast.
The company claims the platform will be the largest offshore facility in the world, around 488 meters long.
It is being built in South Korea by Samsung heavy industries.
Shell's executive director, Malcolm Brinded, said the technology would expand the amount of gas which could be reached economically.
Continue reading the main story (http://www.bbc.co.uk/news/13465892#story_continues_2) “Start Quote


Gas is relatively easy to find and frankly probably getting cheaper to produce”
End Quote Johan Hedstrom Energy analyst, Southern Cross Equities
"(It) will allow us to develop offshore gas fields that would otherwise be too costly to develop," he said.
The project is likely to export gas throughout the region.
It would meet just over a third of China's current LNG demand at current levels - but that is expected to increase five times by 2020.
Japan is also increasing its LNG imports to meet demand due to reduced electricity supply from nuclear power. Japanese utility, Osaka Gas, signed up to import gas from the platform last year.
Environmental impact
Natural gas emits less carbon dioxide than other fossil fuels such as coal or oil - so Shell says using natural gas is a cleaner option for the environment.
They point out that being able to locate LNG platforms offshore will reduce the environmental impact on coastal areas and the sea bed compared with conventional gas facilities.
http://news.bbcimg.co.uk/media/images/52847000/jpg/_52847862_flng_rear_very_high_3k_lavailableforprin t.jpg A graphical impression of what Shell believe the facility might look like
However some environmentalists in Australia have criticised the move saying the process of extracting the gas from the field and then chilling it to a liquid form will create greenhouse gas emissions.
"WWF is very concerned about the potential impacts on the tropical marine environment and the high greenhouse gas emissions from this project," said Paul Gamblin from WWF Australia.
Cheap gas
The investment marks the latest push into the gas sector by Shell which has been steadily increasing its production.
Analysts say investments in gas are likely to bring a lower return than oil as new supplies - especially from shale gas - become available.
"Gas is relatively easy to find and frankly probably getting cheaper to produce," said Johan Hedstrom, an Australian energy analyst at Southern Cross Equities.
"And you don't have an OPEC that controls gas, so you have to make up for the price weakness by doing more volume," he added

[hal]

Hey guys, I have been reading into the LNG story a bit and really like the prospects. I have bought some WPL for exposure and am interested in:

1. Are there any other majors you would buy for LNG exposure besides WPL - and not just for diversification - i.e only want to buy another if there is a genuine reason to - otherwise will buy more WPL. Most analysts rate WPL. Also I have some exposure through BHP.

2. Are there any service companies who are particularly exposed to LNG - WOR, UGL etc - and do you think the competition in this sector from major offshore contractors is going to depress margins and make this sector not worth investing in?

3. I notice there are now shipyards producing LNG powered ships. Are there any LNG using product producers on the ASX? e.g a company that converts/makes trucks to LNG power?

Modandm

Other majors who are investing in LNG production are
Origin Energy
Santos

Middle tier
Oil Search(PNG)

Early stage
My favourite speculative stock is Buru Energy who have big acreage in the Canning Basin of Western Australia. They have attracted Mitsubishi as a partner to explore and then commercialise any discoveries.

They did have a discovery last year which could be quite big and have a drilling campaign(approx. 10 wells) starting now which should continue through the current dry season.

They already have a contract to supply gas via Port Hedland to Alcoa and intend to build a pipeline once & if enough gas is found.

Mitsubishi have the responsibility to arrange the LNG side of the business if they find enough gas.

As I said this is early stage and speculative but could have upside if they confirm their find from last year and have more success with the drill bit. This is all in my opinion but there is a lot of information to research on their website is which is at www.buruenergy.com.au

[drillfix]

Anybody here following EXE (Exoma Energy)?

Just announced they are starting a drilling campaign up there in the Galillee Basin in Central Qld.

The first well is expected to spud this Thursday 26 of May. then another 12 drills after that.

I wonder what this will bring to them and the Junior end of town, good luck I sure hope as I hold a small parcel of these doggies :)

As always, time will tell.

Oppss check this out, Link to ann: http://imagesignal.comsec.com.au/asxdata/20110523/pdf/01182915.pdf

[tricha]

It's starting to move fast and some have a head start, so do I !


Gas price rise prompts Santos to revamp Cooper Basin

<LI class="byline first ">Matt Chambers <LI class="source " sizset="77" sizcache="17">From: The Australian (http://www.theaustralian.com.au/)
May 23, 2011 12:00AM

SANTOS is gearing up to breathe new life into its onshore Cooper Basin gasfields, embarking on a $120 million drilling program to bring the 40-year-old Moomba gas plant in the central Australian desert closer to the production levels of its heyday.

Growing export demand and the potential for carbon-price-driven gas power stations are pushing Santos to extract all the conventional gas it can to supply Moomba, which draws onshore gas from an area the size of Victoria and has cost $8 billion to develop so far.
Santos is drilling between its existing 576 production wells and is expected to hit more gasfields in the basin, which straddles the South Australian and Queensland borders.
Now, instead of one well every 80ha, there will be one drilled every 20ha.
"Ultimately, it will allow us to sustain current production levels (and) probably grow them," chief executive David Knox said during a visit to the site this week.

"And we can respond -- if the market did climb harder than we model, we can respond, with partners' support, to supply that market."
Moomba, 67 per cent owned by Santos, 20 per cent by Beach Energy and 13 per cent by Origin Energy, is producing about 300 terrajoules of gas daily, down from its peak of about 700TJ daily around the turn of the century.
By comparison, Woodside Petroleum's North West Shelf project, the nation's biggest domestic gas plant, produces about 600TJ daily.
The plant will regain its peak production because the gas now has higher carbon dioxide levels -- about 20 per cent -- which must be removed. It is currently released into the atmosphere.
"We're looking at steady state, probably in the order of 400TJ a day," Santos eastern Australia vice-president James Baulderstone said.
"There is a substantial amount of conventional gas left and what has changed is market demand," he said.
"We're talking about a doubling or tripling of demand on the east coast."
Because there was little growth in east coast demand for gas, Santos did little exploration in the Cooper Basin over the past 10 years.
The real driver for the Moomba plant was an oil-price-linked supply deal with the Santos-led Gladstone Liquefied Natural Gas plant.
The $US16bn ($15bn) plant, in which Santos has a 30 per cent stake, will mostly use Queensland coal-seam gas, but it will also take 10-15 per cent of its gas from the Cooper Basin.
Santos said the new drilling rigs it had commissioned for the infill drilling would shave about 20 per cent from its costs.
The drilling will test the Cooper Basin's potential for shale gas -- the unconventional gas that has turned US markets on their head but also sparked protests from landowners.
Mr Knox said shale gas could be produced from Cooper if eastern state gas prices rose from $3-$4 a gigajoule to about $6.
Technology that releases gas from shale rock by fracturing the rocks underground (known as fracking) has turned a US gas shortage into a glut.
"We'll do conventional and slowly move into the unconventional over time," Mr Knox said. "We're not talking one or two years. We're talking in the next 10-20 years."
Beach managing director Reg Nelson, who was also visiting Moomba, said his company had other shale gas ground he was hoping to have in production "in a matter of years, not decades".
Mr Nelson said one of the key concerns in the US had been contamination of water.
"From the nearest potable aquifer to where we are looking in terms of distance, there's around 1500m to 2000m, so the probability you'll contaminate any aquifers with fracking is zero," he said.
Mr Baulderstone said the price necessary to realise the Cooper Basin's shale potential would not necessarily mean a big rise in retail gas prices.
"The wholesale gas price is $4 (a gigajoule) roughly. What you pay when you turn on your stove is $21," he said.
"Even if that price doubled, it would only add another 20 per cent on to their price, so we are very comfortable."
The price movement needed to make these large volumes of gas economic "isn't very significant".
Mr Knox said the Cooper Basin could continue to supply gas for 50 years.
The basin's production was hit by heavy rains over summer but the ground is starting to dry out and there are signs that rainfall is returning to normal.
As well as gas, the Cooper Basin produces about 30,000 barrels a day of crude oil and other petroleum liquids.

[tricha]

Gas the transition fuel.

7 June 2011 Last updated at 10:08 GMT
International Energy Agency says gas in golden age

http://news.bbcimg.co.uk/media/images/53281000/jpg/_53281231_gas2.jpg Australian firms are building gas plants to power industry
Continue reading the main story (http://www.bbc.co.uk/news/business-13677732#story_continues_1) Increasing gas supply and demand for the fuel could set off a "golden age of gas", the International Energy Agency (IEA) has said.
An IEA report claimed that demand for gas could outstrip coal by 2030, and get close to demand for oil by 2035.
The agency pointed to the uncertain future of nuclear energy as one of the main reasons for gas becoming so popular.
Growth in the sector would be led by China and the US, the IEA said.
"Ample supplies, robust emerging markets and uncertainty about nuclear power all point to a prominent role for gas in [the] global energy mix," the IEA said in a report (http://www.iea.org/press/pressdetail.asp?PRESS_REL_ID=415).
Main drivers
China is endeavouring to use cleaner forms of fuel in the coming years, and that is likely to increase the demand for gas substantially.
"Worldwide, 16 of the 20 most polluted cities are in China, largely related from coal power plant production," said Fatih Birol of the IEA.
Continue reading the main story (http://www.bbc.co.uk/news/business-13677732#story_continues_2) “Start Quote


Europe is very densely populated so whatever you find is bound to be beneath a village or a town”
End Quote Christine Tiscareno S&P Equity Research
"For this reason, China is pushing for gas to replace a lot of coal power production," he added.
Mr Birol added that China currently uses nearly as much gas as Germany, but given the growth potential, its consumption may exceed that of the entire European Union by 2035.
As for the demand from the US, the IEA said that 60% of the country's coal power plants are expected to be retired in the next 20 years.
"There is a strong chance that a large proportion [of those coal mines] will be replaced by gas," said Mr Birol.
Nuclear and renewable risk
The report warned that the availability of plentiful and cheap gas in some parts of the world may undermine demand for renewable energy.
Gas "could muscle out low-carbon fuels, such as renewables or nuclear - particularly in the wake of the incident at Fukushima," warned IEA executive director Nobuo Tanaka.
http://news.bbcimg.co.uk/media/images/50887000/jpg/_50887087_50886224.jpg Drilling for gas in the UK has been suspended due to earthquake concerns
Whilst gas is cleaner to burn than oil the IEA warned that burning gas instead of renewables would do relatively little to mitigate climate change.
The report suggested that under its gas scenario temperatures would rise by 3.5C.
Unconventional gas
New gas supplies are expected to come from unconventional sources including shale gas in the US and coal bed methane reserves in Australia.
In its report the IEA estimated that such unconventional reserves were now as large as reserves of conventional gas.
However there are uncertainties about whether these unconventional reserves can be accessed around the world.
"It's very difficult, in particular in Europe," says Christine Tiscareno and oil and gas analyst at S&P Equity Research.
"France has already banned it. Europe is very densely populated so whatever you find is bound to be beneath a village or a town," she added.
Drilling for shale gas in the UK was recently suspended due to concerns about small earthquakes in the region.

[tricha]

Here is some Sunday afternoon reading. It;s a great read if u r looking to invest into, the energy of the future.

http://www.oilandgasinvestor.com/pdf/ShaleGas.pdf

[CAM]

Have you seen the documentary Gasland? and read the document Affirmiing Gasland?

[Oiler]

Have you seen the documentary Gasland? and read the document Affirmiing Gasland?

Yes I have CAM and I think it is a great piece of work set up by the NIMBY's and politicians in upstate NY and NJ. Of course they dont want people drilling in there multi million dollar back yards. Note:to date there has been no drilling or fraccing anywhere near the "flaming faucet" Fox ignored the fact that the shale formations are 5 to 10,000 feet below the surface with potable aquifers not usually below 400/500 feet so very hard to see how there can be cross contamination.

[shasta]

Yes I have CAM and I think it is a great piece of work set up by the NIMBY's and politicians in upstate NY and NJ. Of course they dont want people drilling in there multi million dollar back yards. Note:to date there has been no drilling or fraccing anywhere near the "flaming faucet" Fox ignored the fact that the shale formations are 5 to 10,000 feet below the surface with potable aquifers not usually below 400/500 feet so very hard to see how there can be cross contamination.

I'd take Oilers word about Shale Gas over a FOX (pro oil) rant anyday ;)

BTW, where is Mattyroo these days?

If Shale gas is guna take off then buy some DGR to get entitlement to the Armour Energy IPO, they are talking about a possible 40TCF resource

[CAM]

Thanks for that info guys...much appreciated

[Oiler]

I'd take Oilers word about Shale Gas over a FOX (pro oil) rant anyday ;)

BTW, where is Mattyroo these days?

If Shale gas is guna take off then buy some DGR to get entitlement to the Armour Energy IPO, they are talking about a possible 40TCF resource

Thanks Shasta :blush:

I spoke with both Nick Mather DGR and Phil McNamara (Amour Energy) at the Gold Coast Resource Showcase last week and am very excited about DGR's business plan and the potential for Amour Energy. There is significant interest in the NT and Amour have got there feet right in there. We are seeing a lot of US/Foreign interest, and buying into the NT with its conventional/non conventional gas and potential oil finds. It is almost like the last frontier in Australia.

The big question is where is the best leverage? DGR or the upcoming Amour float. I guess only time will tell and of course the market.

[shasta]

Thanks Shasta :blush:

I spoke with both Nick Mather DGR and Phil McNamara (Amour Energy) at the Gold Coast Resource Showcase last week and am very excited about DGR's business plan and the potential for Amour Energy. There is significant interest in the NT and Amour have got there feet right in there. We are seeing a lot of US/Foreign interest, and buying into the NT with its conventional/non conventional gas and potential oil finds. It is almost like the last frontier in Australia.

The big question is where is the best leverage? DGR or the upcoming Amour float. I guess only time will tell and of course the market.

Buying DGR guarantees you the entitlements, but it depends on how many, or what $ limit of the Armour Energy shares are kept for DGR shareholders.

[tricha]

Yes I have CAM and I think it is a great piece of work set up by the NIMBY's and politicians in upstate NY and NJ. Of course they dont want people drilling in there multi million dollar back yards. Note:to date there has been no drilling or fraccing anywhere near the "flaming faucet" Fox ignored the fact that the shale formations are 5 to 10,000 feet below the surface with potable aquifers not usually below 400/500 feet so very hard to see how there can be cross contamination.

Take the Cooper basin and most other areas in OZ, there are only kangaroos and a few snakes living in the area, exciting times a head if u r positioned.:eek2:

http://www.eia.gov/energy_in_brief/images/charts/us_natural_gas_supply_large.jpg

[skeet]

http://blogs.forbes.com/christopherhelman/2011/06/27/new-york-times-is-all-hot-air-on-shale-gas/

"Over the weekend The New York Times published this story on how the business of drilling natural gas out of shale is some sort of ponzi scheme, even Enron-like. The article suggested that there’s really not as much gas in these plays as the industry wants us to believe, that companies are making false claims about the productivity of wells, and that the costs of extracting the gas might be so high as to not be economic"

Not sure since when the NY times has been an expert on gas and oil.

[tricha]

http://blogs.forbes.com/christopherhelman/2011/06/27/new-york-times-is-all-hot-air-on-shale-gas/

"Over the weekend The New York Times published this story on how the business of drilling natural gas out of shale is some sort of ponzi scheme, even Enron-like. The article suggested that there’s really not as much gas in these plays as the industry wants us to believe, that companies are making false claims about the productivity of wells, and that the costs of extracting the gas might be so high as to not be economic"

Not sure since when the NY times has been an expert on gas and oil.

I'm not sure either Skeet, but I'm in on this one, bigger than any US Shale Gas.
Gas the transition fuel :)

A fracking good deal on Aussie shale gas

http://resources3.news.com.au/images/2011/02/22/1226010/338059-shale-gas.jpg
US oil giant to spend $100m exploring for shale gas in WA Source: The Australian



US oil giant ConocoPhillips is poised to become the first global major to start looking for shale gas in Australia, signing a non-binding deal with New Standard Energy to spend up to $US110 million ($103m) on exploration in Western Australia.

The deal, announced yesterday, comes just a day after Beach Energy said it had significant gas flows from the nation's first shale gas well, drilled in South Australia. It also comes after US mid-tier oil company Hess earlier this year agreed to spend up to $US60m acquiring interests in and exploring the Beetaloo Basin in the Northern Territory.
In the past decade, new shale gas technologies, which include the controversial underground process of fracking to release gas from the rock it sits in, has turned a gas shortage in the US into a surplus.
It is unclear whether there is similar potential in Australia, and whether it is cost effective, given our comparative lack of pipeline infrastructure and lack of previous exploration drilling.
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Related Coverage



Big support for WA shale gas explorer (http://www.adelaidenow.com.au/business/big-support-for-wa-shale-gas-explorer/story-e6fredk3-1226094035525) Adelaide Now, 1 day ago
ConocoPhillips in shale gas deal in WA (http://www.perthnow.com.au/business/wa-company-news/conocophillips-in-shale-gas-deal-in-wa/story-e6frg2s3-1226093936510) Perth Now, 1 day ago
Shale gas success boosts Beach (http://www.adelaidenow.com.au/business/shale-gas-success-boosts-beach/story-e6frede3-1226093042296) Adelaide Now, 2 days ago
Beach dealing with Holdfast well (http://www.theaustralian.com.au/business/companies/beach-energy-dealing-with-holdfast-well/story-fn91v9q3-1226093024682) The Australian, 2 days ago
US shale gas debate heats up (http://www.perthnow.com.au/business/us-shale-gas-debate-heats-up/story-e6frg2r3-1226082755227) Perth Now, 27 Jun 2011





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But the testing of the waters by two US oil companies is bound to spur interest in companies such as New Standard, Beach and AWE that have been early entrants into shale gas exploration permits. Conoco and New Standard have signed a heads of agreement to negotiate the US major taking up to a 75 per cent stake in New Standard's Goldwyer project on the northern edge of the Great Sandy Desert by funding up to $US109.5m of drilling and evaluation.
The pair are targeting a binding agreement by the end of September. If a binding agreement were struck, New Standard said it hoped exploration would begin next year.
Under the deal, Conoco will not immediately become the operator of the permits. Instead, it will fund Perth-based New Standard's drilling of exploration wells.
But the major has the right to become the operator whenever it pleases. It also has the right to pull out of the deal at various stages of exploration, leaving New Standard with the whole of Goldwyer, which stretches over 45,000 square kilometres of the onshore Canning Basin.
In an April report, the US Energy Information Agency said the Canning Basin could hold the most shale gas of Australia's onshore basins.
On Tuesday, Adelaide-based Beach said its Holdfast-1 well in the Cooper Basin had steady flows of 1.8 million cubic feet a day of shale gas.
The company described the flow rates as very signific

[tricha]

This is out there and I'm sure we will see some fireworks soon.

BHP Billiton swoops on gas firm Petrohawk for $12.1 billion
http://www.mcall.com/business/sns-rt-us-petrohawk-bhptre76d7mc-20110714,0,5099216.story

[tricha]

Analysts that do not understand the meaning of peak oil.
If they do not understand that, they are probably mates of Skol.

I'm sure BHP understand it very WELL.;) China better get a move on to secure their supplies.:confused:

Analysts query value of BHP's shale gas buy
<LI class="byline first ">Matt Chambers <LI class="source " sizset="72" sizcache="67">From: The Australian (http://www.theaustralian.com.au/)
July 18, 2011 12:00AM






http://resources1.news.com.au/images/2011/02/22/1226010/336993-shale.jpg
BREAKING IN: BHP is buying into the US shale gas market. Picture: Bloomberg Source: Bloomberg



BHP Billiton's plans to spend $US80 billion ($75bn) on US shale gas and oil over the next decade may not deliver much more to the company than its cost of capital, according to JPMorgan analysts.

BHP's friendly $US12.1bn cash deal to buy Texas and Louisiana-focused Petrohawk Energy, announced on Friday, got a lukewarm reception from Australian analysts, partly because its returns depend on a long-term strengthening of the volatile and currently oversupplied US gas market.
The acquisition, which will go live on July 25 and is conditional on BHP obtaining more than 50 per cent of Petrohawk's shares, comes five months after BHP spent $US4.75bn on Chesapeake Energy's Arkansas shale ground.
BHP will spend up to $US7bn a year ramping up production.
"BHP has now committed to $US20bn (including $US3bn of assumed Petrohawk debt) of capital upfront and more than $US60bn more over the next decade to an emerging sector that relies on an improving supply and demand, and therefore pricing, dynamic to support the economics," JPMorgan analyst Fraser Jamieson said.
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Mr Jamieson said conversations with JPMorgan's Petrohawk analyst suggested earnings would struggle to deliver much more than the cost of capital in the longer term.
"This compares poorly to the returns generated in iron ore, which are about 20 per cent," he said.
There is no doubt BHP has landed prime US onshore shale assets. But there are doubts from Australian analysts, who are not as well versed in shale as they are in other parts of the mining giant's business.
UBS analyst Glyn Lawcock said he was still assessing whether BHP was getting a good deal. "On value, it comes down to one's view of US gas prices," he said.
US domestic gas prices are about $US4.40 a gigajoule, having been weighed down in recent years by increased shale gas production.
Analysts are predicting longer-term prices of $US6 a gigajoule as US gas demand picks up.
Of course, massive spending on supply like that planned by BHP will do nothing to help prices.
But shale oil is more expensive than gas in energy unit terms.
Petrohawk says revenue from oil and natural gas liquids (which are about four times the price of gas per energy unit) will grow to 49 per cent by 2013.
BHP will have a gearing ratio of about 30 per cent if it is successful with the Petrohawk deal, for which it has taken out a $US7.5bn loan facility. This makes a previously expected buyback announcement with August's full-year results less likely.
On Friday, in apparently standard behaviour for friendly US takeovers, law firms there began declaring they were investigating Petrohawk directors for possible breaches of fiduciary duty in relation to the BHP bid.
The law firms are investigating whether directors adequately shopped Petrohawk around to get the best deal possible.
Petrohawk chief Floyd Wilson will reportedly receive $US150 million in the

[mattyroo]

Yes I have CAM and I think it is a great piece of work set up by the NIMBY's and politicians in upstate NY and NJ. Of course they dont want people drilling in there multi million dollar back yards. Note:to date there has been no drilling or fraccing anywhere near the "flaming faucet" Fox ignored the fact that the shale formations are 5 to 10,000 feet below the surface with potable aquifers not usually below 400/500 feet so very hard to see how there can be cross contamination.

Oiler et al.

What you state about the Potable aquifers being structurally separated from the aquifers that contain the shale formations is not correct, when looking at US shale formations in New Jersey and upstate New York, as per the Gasland movie.

It is however correct when considering the coal seam gas formations in Australia. The coal seam gas formations (and associated aquifers) are thousands of feet below the Great Artesian Basin, where Western Queensland farmers draw water from, they also have impregnable rock between them.

What does concern me though is the corrosivity of the water/gas mix that is brought up from the coal seams. I have this uneasy feeling that it will destroy well liners and turn casings to fairy dust, therefore meaning there could be cross-contamination of the two aquifers. The coal seam aquifer being briny, would be disastrous for the potable aquifer.

Shasta - I'm still around, been in Mongolia and China lately. Lurk here occasionally but have rarely had the time to post of late. Will have to try and get to an ST meeting soon. How about someone organise one for a weekend in Christchurch and I'll squeeze some skiing in at Mt. Hutt at the same time!

[tricha]

Boom!

From Dan Denning in St. Kilda...

--Your editor missed all the excitement last week. He was up on the rainy Sunshine Coast to follow up on the shale gas story told in Revolution in the Desert (http://clicks.portphillippublishing.net//t/AQ/AAY8Dw/AAZInA/AARc9A/AQ/AmYIzA/bQhb). And some of the very events discussed in that report began to gather pace over the last few days. Today’s Daily Reckoning will tell you what it means for energy and precious metals stocks.

--Let’s start with energy. BHP’s $14.1 billion bid for US shale-gas play Petrohawk Energy is obviously the big news of the last few days. What does it mean? Let’s break it down three ways: what it means for BHP, what it means for shale gas, and what it means for the shale gas industry in Australia.

--For BHP shareholders the question is whether BHP is right about the direction of gas prices. BHP is basically making a bet on higher gas prices. Analysts in Australia have rubbished the deal (on a short-term basis) because they believe BHP can generate higher returns on assets like iron ore and coal.

--From BHP’s perspective, there are only two counter arguments. One: under Marius Kloppers the company is making a bad deal for the sake of a doing any deal. Better to look busy that just do another boring old share buyback. That’s one explanation.

--The other explanation is that Kloppers thinks this is the bottom for natural gas. There haven’t been too many commodities trading near bargain prices. But natural gas is one of them. The huge supply boom/glut from US shale is part of the reason. A bet on gas now is a bet on higher demand.

--It’s also a bet on gas becoming more important in the world’s energy mix. That seems like a given, and not just because it’s the main conclusion we draw in Revolution in the Desert (http://clicks.portphillippublishing.net//t/AQ/AAY8Dw/AAZInA/AARYIw/Ag/AmYIzA/QUUg). It seems like a given because gas is the most logical and likely replacement for coal as the fuel for new power plants. Australia’s own carbon tax favours gas to the extent that it will lead to the phase out of coal-fired power stations.

--There is also the issue of depletion in conventional oil fields. One of the real eye openers from our trip to the Offshore Technology Conference in Houston is how expensive it’s going to be finding and producing the next trillion barrels of oil. They’re out there. But they’re in remote and hostile places.

--If shale gas reserves are developed in the countries that are thought to have them, it will mark a shift from an oil-dominated global energy market to...whatever comes next. If you want to know what comes next...or at least what we think comes next...watch Revolution in the Desert (http://clicks.portphillippublishing.net//t/AQ/AAY8Dw/AAZInA/AARYIw/Aw/AmYIzA/F_ib).

--Is BHP overpaying for Petrohawk? Petrohawk has 3.4 trillion cubic feet of proved natural gas equivalent reserves (Tcfe). It has a resource base of 35 Tcfe. Prior to BHP’s offer—which Petrohawk has embraced—the company said it expected to produce 950 million cubic feet of gas a day this year, with liquids accounting for 15 per cent of output.

--Remember BHP spent $4.5 billion on the Fayetteville shale assets of Chesapeake Energy earlier this year. When you add up its existing oil and gas production with its new US acreage, BHP is on pace to produce a million barrels of oil equivalent a day in five years. That’s a lot of oil for a mining company.

--But obviously BHP has seen the projection that shale gas will make up one-half of US total gas production by 2020. Low prices generate demand. And BHP seems more than happy to cop the short-term negative analyst coverage in order to make a long-term bet that when gas prices are higher, the return on its new assets will look a lot more attractive to shareholders.

--We’ll ask our valuation expert Greg Canavan what he thinks. And we’ll see if our resident in-house trader Murray Dawes sees anything in the BHP chart you should know about. But our main observation is that BHP has put itself in position to be the world’s 7th largest oil and gas company based on its total resources.

--This is clearly a bet on energy commodities having a lot more growth potential than bulk commodities, like iron ore and coal. Is it the right bet? We’ll see. The other important question is whether BHP shares are a good bargain.

--BHP paid a 61% premium for Petrohawk’s shares, based on a 20-day average of its share price. You only do that sort of thing when you believe in the long-term case for buying energy assets when they’re cheap. It’s really a bet on energy and gas. And it also echoes the Accelerated Transformation Program of Saudi Aramco that we spoke about in Revolution in the Desert (http://clicks.portphillippublishing.net//t/AQ/AAY8Dw/AAZInA/AARYIw/BA/AmYIzA/f_Es). When you have world-class companies shifting their strategic focus to accommodate a new set of facts on the ground, you should find out what those facts are.

--By the way, developments on the ground here in Australia are already heating up in the shale gas space. We’ll write more about that tomorrow. But BHP would certainly hope to learn a lot about producing shale gas in the States. It is knowledge that could come in very handy in developing Australia’s shale gas assets, of which there are many.

[tricha]

Gas the transition fuel, China is energy hungry and gas is the key. Do u have yours :confused:


20 July 2011 Last updated at 10:40 GMT

Chinese state oil firm buys Canadian oil sands producer

http://news.bbcimg.co.uk/media/images/54156000/jpg/_54156967_oilsandsafp.jpg The Syncrude extraction facility is one recipient of Chinese investment

Chinese state oil company CNOOC has agreed to buy Canadian oil sands producer OPTI for $2.1bn (£1.3bn).
The deal - which must be approved by regulators - is the latest move by state-run Chinese firms to buy stakes in North American oil producers.
Canada's Alberta province is believed to have the third-largest reserves of oil in the world.
However it is far more expensive to extract oil from Canada's oil sands than from conventional fields.
CNOOC says it will pay OPTI shareholders $34m, but will also take on the firm's $2bn worth of debt.
The firm's main asset is a 35% stake in the Long Lake oil sands project in Alberta.
OPTI says the deal will allow it to continue to invest further in the project.
"CNOOC is a technically experienced and well capitalised company," said OPTI chief executive Chris Slubicki.
Continue reading the main story (http://www.bbc.co.uk/news/business-14214771#story_continues_2) “Start Quote

We are pleased to expand our presence in the oil sands business”
End Quote Yan Hua chief executive, CNOOC
China expansion
The International Energy Agency (IEA) predicts that in the next five years almost half of global oil demand growth will come from China.
Rising demand for oil and significant cash reserves have led Chinese energy firms to buy into foreign oil reserves.
"We are pleased to expand our presence in the oil sands business," said CNOOC chief executive, Yang Hua.
In 2005 the firm bought a 17% stake in Canadian oil sands firm MEG Energy. CNOOC has also obtained minority stakes in oil projects in Texas and Colorado.
CNOOC is not the only Chinese state oil firm investing in the region.
In 2009 PetroChina bought a $1.7bn share in Athabasca Oil Sands, and Last year Sinopec paid $4.6bn for a 9% share of Syncrude, Canada's largest oil sands producer.
The IEA estimates that by the end of 2010 Chinese state energy companies operated in 31 nations and held shares in oil firms in 20 of those countries.
Environmental concerns
Environmentalists have criticised extracting oil from sand and clay which leads to higher carbon emissions than conventional production.
Such concerns may effect demand for crude from oil sands in the US and Europe where new environmental regulations are planned.
California recently announced new low-carbon fuel standards and plans for a new pipeline from Alberta to Texas have been delayed.
Most oil from Alberta is currently exported to the US.
However a second proposed pipeline would take oil to Canada's pacific coast making it easier to export to China instead.

[macduffy]

Some good news for Queensland csg as STO report that the Gladstone LNG project is on schedule and on budget.

http://www.theaustralian.com.au/business/mining-energy/santos-production-flat-queensland-export-venture-on-budget/story-e6frg9df-1226098883243

[Pumice]

Have to agree, it seems CSG is about to ramp up all over QLD.
I just moved here two weeks ago to work at Origin energy.

I dont hold any stock that has anything to do with CSG but I certainly want a piece of the action.
Has anyone heard of Metgasco (MEL)? apparently they have some sizable reserves.

[derek.zoolander]

Have to agree, it seems CSG is about to ramp up all over QLD.
I just moved here two weeks ago to work at Origin energy.

I dont hold any stock that has anything to do with CSG but I certainly want a piece of the action.
Has anyone heard of Metgasco (MEL)? apparently they have some sizable reserves.

MEL looks like a solid company- similar to BOW as far as I can see.


Metgasco has a 100% interest in PEL 16, 13 and 426 in the Clarence Moreton Basin in NSW where
we operate the largest acreage position in the basin. Metgasco currently has 2P gas reserves of 428
Petajoules and 3P gas reserves of 2,542 Petajoules. We are exploring for gas in conventional and
unconventional reservoirs and in 2010 discovered the Kingfisher gas field, the largest conventional
discovery in NSW in over a century of exploration in the State. Metgasco is currently progressing its
gas commercialisation agenda which includes gas and electricity supply to NSW and gas supply to
Queensland. With gas in place resources likely to exceed the domestic markets requirements and
sufficient to supply export scale projects, Metgasco is currently investigating LNG project
development options

[tricha]

Have to agree, it seems CSG is about to ramp up all over QLD.
I just moved here two weeks ago to work at Origin energy.

I dont hold any stock that has anything to do with CSG but I certainly want a piece of the action.
Has anyone heard of Metgasco (MEL)? apparently they have some sizable reserves.

With good oil finds in Australia, non existant, there are some great plays on OZ gas companies coming, like MEL there are many, exciting times ahead.
Who's 1st on the block to be eaten :confused:

http://www.financialsense.com/financial-sense-newshour/guest-expert/2011/07/22/joseph-dancy/oil-stocks-are-deeply-undervalued

[tricha]

With good oil finds in Australia, non existant, there are some great plays on OZ gas companies coming, like MEL there are many, exciting times ahead.
Who's 1st on the block to be eaten :confused:

http://www.financialsense.com/financial-sense-newshour/guest-expert/2011/07/22/joseph-dancy/oil-stocks-are-deeply-undervalued

God it did not take long, game on.:)

With Beach and ADE WELL ahead of Drillsearch and anyone else in this field.
I can see some huge profits coming.


Drillsearch and QGC form $130 million Cooper Basin Shale Gas JV
http://www.stocknessmonster.com/news-item?S=DLS&E=ASX&N=641941 (http://www.stocknessmonster.com/news-item?S=DLS&E=ASX&N=641941)

[tricha]

Gas, the last resort. Then what:confused:

15 September 2011 Last updated at 10:19 GMT EDF Energy to put up gas prices by 15%
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The Energy and Climate Change Secretary Chris Huhne, "I'm absolutely determined we will not take this lying down."

Continue reading the main story (http://www.sharetrader.co.nz/#story_continues_1)
EDF Energy is to raise gas prices by 15.4% and electricity prices by 4.5% from 10 November, the company has announced.
It is the last of the "big six" energy companies to announce increases in prices for domestic customers.
It said it had absorbed wholesale price rises for as long as possible before being forced to raise costs for customers.
Regulator Ofgem is studying whether higher prices are justified.
"We have absorbed rising wholesale energy, network and other costs as long as possible but must reluctantly now pass some of these through to consumers," said Vincent de Rivaz, chief executive of EDF Energy.
The annual cost of a standard dual-fuel bill paid for by direct debit would rise to £1,165 from £1,051, the company said.
Final move EDF follows the other five major energy suppliers - British Gas, Scottish Power, Scottish & Southern Energy, Npower and E.On - in announcing price rises.
The tariffs across the industry have included price rises of up to 18%.


Energy price rises

Scottish Power Scottish & Southern British Gas Npower E.On EDF

G=Gas. E=Electricity



Nov

G:2% E:8.9%








Dec


G:9.4%

G:7% E:7%






Jan




G&E: 5.1%





Feb





G:3% E:9%




Mar






G:6.5% E:7.5%



Aug

G:19% E:10%


G:18% E:16%






Sept


G:18% E:11%



G:18% E:11%




Oct




G:15.7% E:7.2%





Nov






G:15.4% E:4.5%




"The fact that EDF Energy has made smaller and later hikes than other suppliers is welcome, but it will not soften the blow on those who are struggling on tight household budgets," said Mike O'Connor, chief executive of watchdog Consumer Focus.
Continue reading the main story (http://www.sharetrader.co.nz/#story_continues_2) “Start Quote
There remains a widespread lack of understanding and suspicion of the industry as a whole”
End Quote Vincent de Rivaz EDF chief executive

The moves have prompted the energy regulator Ofgem to step up its investigation into pricing by the big six suppliers.
It has brought in the forensic accountants BDO to see if energy firms understated their retail profits to justify higher prices.
Mr de Rivaz said that "suspicion" of the industry needed to be addressed.
"We recognise there remains a widespread lack of understanding and suspicion of the industry as a whole, among the public, customers in general, politicians, regulators and others," he said.
"It is important this perception is addressed. The energy challenges Britain faces are far too important and can only be addressed in a world with trust, open dialogue and mutual understanding.
"If a Competition Commission inquiry is necessary to build this trust, then it is a step that should be taken."
Bills Last month, EDF admitted that 100,000 customers had been overcharged owing to a seven-year fault on the company's automated telephone meter reading system.
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Paul Lewis from Money Box gives tips on how to save money on energy bills

The problems occurred at times when EDF changed its prices between October 2003 and May 2010. This led to £200,000 of overcharging, although customers affected are being reimbursed, including interest.
Mr de Rivas apologised for "service issues" suffered by some customers.
An analysis of entries on Twitter about customer service found that 11% were positive and 70% negative in relation to EDF, according to social media monitoring company Brandwatch.
The highest proportion of negative comments among the big six suppliers was 73% about Npower.
Meanwhile, earlier this month, EDF said it had joined Scottish and Southern Energy and British Gas in halting unsolicited doorstep sales of gas and electricity contracts.
Inflation Heating costs contributed to the rising cost of living reported by the Office for National Statistics (ONS) on Wednesday.
The rate of inflation measured by the Consumer Prices Index (CPI) rose to 4.5%, from 4.4% in July. The Retail Prices Index (RPI) measure increased to 5.2% from 5%.
Debt advice service the Consumer Credit Counselling Service said that one in three people contacting the charity for help were in fuel poverty.
This is when a household is spending more than 10% of its income on heating.

[Pumice]

Interesting times ahead for Aussie gas plays. Have been doing a bit of strategy work over here. Not sure if its new, but the price of Aussie CSG is set to soar when the LNG trains get a move on. CSG is currently priced well bellow export prices, but when the LNG projects start exporting local prices will come into line.

Doesnt look too good for local electricity prices. The price hike will likely hit around the same time as the carbon tax.

[bermuda]

Interesting times ahead for Aussie gas plays. Have been doing a bit of strategy work over here. Not sure if its new, but the price of Aussie CSG is set to soar when the LNG trains get a move on. CSG is currently priced well bellow export prices, but when the LNG projects start exporting local prices will come into line.

Doesnt look too good for local electricity prices. The price hike will likely hit around the same time as the carbon tax.

Bloomberg has just put out a very good global report on LNG. Well worth reading. Japan's nuclear power has been cut in half, Germany has shut down 7 of its 13 reactors and LNG demand is soaring.

About time too. LNG/CNG should be promoted to back out high cost coal and oil.

The Golden Age of Gas is upon us.

[Corporate]

Bloomberg has just put out a very good global report on LNG. Well worth reading. Japan's nuclear power has been cut in half, Germany has shut down 7 of its 13 reactors and LNG demand is soaring.

About time too. LNG/CNG should be promoted to back out high cost coal and oil.

The Golden Age of Gas is upon us.

bermuda, have you got the link to post up?

Cheers

[STRAT]

bermuda, have you got the link to post up?

Cheershttp://www.bloomberg.com/news/2011-09-19/lng-price-boom-seen-as-japan-vies-with-china-while-exxon-s-shipments-grow.html

[drillfix]

I find that quite ironic really.

Prices going up all the time, then there will be of no benefit to the human race if nobody cant "eventually" afford it as future traders and monopolies eventually become formed.

Sure big business can afford it, but "eventually" it will more than likely be as expensive as what fuel is already available.

[tricha]

Bloomberg has just put out a very good global report on LNG. Well worth reading. Japan's nuclear power has been cut in half, Germany has shut down 7 of its 13 reactors and LNG demand is soaring.

About time too. LNG/CNG should be promoted to back out high cost coal and oil.

The Golden Age of Gas is upon us.

The writing is upon us Bermuda, good report and it should provide an incentive to buy some gas.

The plants in Gladstone will be starved and many companies will soon be rewarded, or taken out.

[Pumice]

For those that were following Metgasco (MEL).
ERM buying up for the same reason many of us are. Gas prices are set to rise quite a bit over the next few years.

Power generator takes stake in east coast gas
Brian Robins
September 30, 2011
INDEPENDENT electricity generator ERM Power has taken its first stake in the gas sector on the east coast, snapping up a 6 per cent stake in Metgasco, as a ''hedging investment'' against the widespread anticipation of rising gas prices.
ERM disclosed the holding yesterday, which is believed to have been picked up at about Metgasco's present share price. It closed trading yesterday at 32.5¢, up 2¢, valuing the company at about $135 million.
''The investment in Metgasco is a hedge against rising gas prices,'' ERM Power's managing director, Philip St Baker, said. ''It's been a bit under the radar. We've done a fair bit of due diligence. It has conventional and unconventional gas, which de-risks the investment.''
Advertisement: Story continues below
Analysts said the rising contention about coal seam gas, with concerns over access, had many investors on the back foot about investing in the sector, but with its reserves of conventional gas, this gave Metgasco another string to its bow.
''The conventional gas exposure is of comfort,'' one analyst said.
Concerned about the prospect for rising gas prices in Western Australia, due to booming export liquefied natural gas demand, ERM invested funds directly in two exploration plays there, now being developed.
''In Western Australia, gas prices have risen threefold in as many years,'' Mr St Baker said.
''We're going to see rising gas prices on the east coast when export LNG projects come on line from 2014-15.''
Several export LNG projects are being developed in Queensland.
Metgasco is developing gas reserves around Casino, in the far north of New South Wales. It is reviewing piping gas to the Brisbane market, exporting gas directly offshore from northern NSW or participating in a project to export gas through the port of Brisbane.
It earlier signed a memorandum of understanding with Liquified Natural Gas Ltd to supply gas to its export project planned for Gladstone, in central Queensland.
Recently, Santos launched an agreed bid for Eastern Star Gas, whose NSW reserves centre on Narrabri.

[tricha]

We are in play, with so many exciting opportunites in this arena!

Holdings in Oil and Gas = BPT, DLS and TAP.

I'm looking for one more.

Australian Small-Cap Investigator
Friday, 11th November 2011
Melbourne, Australia
By Kris Sayce

*** Shale Gas Takeover

You may have noticed the 20% gain in the Icon Energy [ASX: ICN] share price this week.

If you're wondering why it gained so much, I'll fill you in on the details now...

Unfortunately, it isn't down to anything specific to Icon. But there is a close relationship.

This week, Icon Energy's partner in its Cooper Basin shale gas project – Beach Energy [ASX: BPT] – announced a takeover of micro-cap stock, Adelaide Energy [ASX: ADE].

If you recall the September issue of Australian Small-Cap Investigator, I wrote this:

"Until recently, ATP 855P was the subject of a dispute between Icon and Beach Energy. But on 15 July this was resolved. Under a new agreement, 40% of the permit was transferred from Icon to Beach, with 40% remaining with Icon – the other 20% is owned by subsidiaries of Adelaide Energy."

Beach already owned a 19% stake in Adelaide Energy. So based on the $93 million valuation, Beach will need to spend $75 million of its cash reserves to buy the rest of Adelaide Energy's stock.

That's a lot of cash. But even so, after forking out $75 million, Beach will still have another $75 million of cash in the bank... and an unused $150 million debt facility it can tuck into.

That means, once the takeover is complete, Beach Energy will own 60% of the shale gas rich Cooper Basin project.

But more importantly, this development means something else. And it partly explains the 20% price move in Icon Energy shares...

In short, Icon Energy is now in play as a possible takeover target.

But before you get too excited, just remember Beach has only just started to pursue a full takeover of Adelaide Energy. It's not often a company will launch two takeover bids at the same time... or even one after the other.

And I rarely back a share just because of the takeover potential. But this move by Beach Energy shows confidence in the profit potential for shale gas.

Further proof is the exposure the industry is getting from the mainstream press.

This week the Australian newspaper reported:

"Mining companies are exploring Australia's resource states for controversial shale gas as analysts tip the nascent industry will create the next energy boom."

"Nascent" is a fancy way of saying an "emerging" industry.

The important thing to remember is shale gas is only "emerging" (or nascent!) in Australia. In the United States it's an emerged industry. In fact, shale resources have emerged so much, some analysts believe shale oil resources could see the U.S. become the largest oil exporter within the next six years.

According to a report from Dow Jones Newswires:

"The U.S. will soon become the world's top oil producer, The Sunday Times reported Goldman Sachs as forecasting.

"U.S. oil production should reach 10.9 million barrels a day by 2017, a third higher than 8.3 million barrels currently...

"Russia, now the top oil producer, should see production increase only 100,000 barrels in the same period, for an output of 10.7 million barrels a day."

That's in addition to the shale gas opportunity.

Just recently, U.S. company, Cheniere Energy [AMEX: LNG] signed an USD$8 billion gas export deal with the UK's BG Group [LON: BG]. According to Reuters:

"The agreement is a milestone for a U.S. natural gas market that has been turned upside down by the discovery of a century's worth of cheap shale reserves. Cheniere built Sabine Pass for imports in 2008, but those quickly dried up as demand slowed and prices tanked."

Estimates are the U.S. has over 60 trillion cubic feet of recoverable shale gas reserves. But as technology improves, the recovery of shale gas is set to increase.

This is all good news for the emerging Aussie shale gas industry. With other resources prices falling (I'm thinking about iron ore and copper), Australia could be about to catch another lucky break. This time with shale gas.

If Australian gas explorers and producers can follow the example of U.S. shale gas producers, it could produce huge returns for stocks exposed to the industry.

[hal]

We are in play, with so many exciting opportunites in this arena!

Holdings in Oil and Gas = BPT, DLS and TAP.

I'm looking for one more.

Australian Small-Cap Investigator
Friday, 11th November 2011
Melbourne, Australia
By Kris Sayce

*** Shale Gas Takeover

You may have noticed the 20% gain in the Icon Energy [ASX: ICN] share price this week.

If you're wondering why it gained so much, I'll fill you in on the details now...

Unfortunately, it isn't down to anything specific to Icon. But there is a close relationship.

This week, Icon Energy's partner in its Cooper Basin shale gas project – Beach Energy [ASX: BPT] – announced a takeover of micro-cap stock, Adelaide Energy [ASX: ADE].

If you recall the September issue of Australian Small-Cap Investigator, I wrote this:

"Until recently, ATP 855P was the subject of a dispute between Icon and Beach Energy. But on 15 July this was resolved. Under a new agreement, 40% of the permit was transferred from Icon to Beach, with 40% remaining with Icon – the other 20% is owned by subsidiaries of Adelaide Energy."

Beach already owned a 19% stake in Adelaide Energy. So based on the $93 million valuation, Beach will need to spend $75 million of its cash reserves to buy the rest of Adelaide Energy's stock.

That's a lot of cash. But even so, after forking out $75 million, Beach will still have another $75 million of cash in the bank... and an unused $150 million debt facility it can tuck into.

That means, once the takeover is complete, Beach Energy will own 60% of the shale gas rich Cooper Basin project.

But more importantly, this development means something else. And it partly explains the 20% price move in Icon Energy shares...

In short, Icon Energy is now in play as a possible takeover target.

But before you get too excited, just remember Beach has only just started to pursue a full takeover of Adelaide Energy. It's not often a company will launch two takeover bids at the same time... or even one after the other.

And I rarely back a share just because of the takeover potential. But this move by Beach Energy shows confidence in the profit potential for shale gas.

Further proof is the exposure the industry is getting from the mainstream press.

This week the Australian newspaper reported:

"Mining companies are exploring Australia's resource states for controversial shale gas as analysts tip the nascent industry will create the next energy boom."

"Nascent" is a fancy way of saying an "emerging" industry.

The important thing to remember is shale gas is only "emerging" (or nascent!) in Australia. In the United States it's an emerged industry. In fact, shale resources have emerged so much, some analysts believe shale oil resources could see the U.S. become the largest oil exporter within the next six years.

According to a report from Dow Jones Newswires:

"The U.S. will soon become the world's top oil producer, The Sunday Times reported Goldman Sachs as forecasting.

"U.S. oil production should reach 10.9 million barrels a day by 2017, a third higher than 8.3 million barrels currently...

"Russia, now the top oil producer, should see production increase only 100,000 barrels in the same period, for an output of 10.7 million barrels a day."

That's in addition to the shale gas opportunity.

Just recently, U.S. company, Cheniere Energy [AMEX: LNG] signed an USD$8 billion gas export deal with the UK's BG Group [LON: BG]. According to Reuters:

"The agreement is a milestone for a U.S. natural gas market that has been turned upside down by the discovery of a century's worth of cheap shale reserves. Cheniere built Sabine Pass for imports in 2008, but those quickly dried up as demand slowed and prices tanked."

Estimates are the U.S. has over 60 trillion cubic feet of recoverable shale gas reserves. But as technology improves, the recovery of shale gas is set to increase.

This is all good news for the emerging Aussie shale gas industry. With other resources prices falling (I'm thinking about iron ore and copper), Australia could be about to catch another lucky break. This time with shale gas.

If Australian gas explorers and producers can follow the example of U.S. shale gas producers, it could produce huge returns for stocks exposed to the industry.

Have a look at Buru Energy(bru). They have huge acreage in the Canning Basin Western Australia.

They have already found Oil/gas & condensate and have Mitsubishi as a partner. They are currently drilling a follow up well for their recent Ungani 1 oil discovery.

They should also very soon be deepening Paradise 1 well which had oil shows last year and may have gas deeper down in the Laurel formation. They are in the tropics and the wet season is approaching however they are trying to drill wells through the wet season this year(not sure whether it will work)

Have a look at their reports at www.buruenergy.com.au