get in early to shale gas, page-2

Geting in early maybe part of the strategy, but unless you have the pulling power to make things happen (ie the resources of a super major oil company) its going to be a long wait for a return.

To be commercialised shale gas needs easy market access. It is capital intensive and requires an efficient service sector, rigs, consumable products, trained people.

At present Australia has neither of these assets. The service and comsumable companies can gouge prices due to lack of competition, the australian drilling rig inventory is a joke, and there is a real shortage of skilled operators.

CP's interest in NSE is just a toe in the water and they could take out NSE (and BRU for that matter) at any time they like. If CP was interested in the Derby block they could take out OBL with the 'sticky bun' petty cash account and still have money left.

But there is still no market, and early stage shale gas is not suitable for LNG it needs a domgas customer.