Yes, I get all of that, you have made it very clear... Now...

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Scroogymcscrooge

1,877 Posts.

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27/07/15

16:48

Post #: 15701465
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Originally posted by tui ↑

Scroogy,
Shale oil in Australia would be very difficult. The price would have to well over $100/bbl and the permits near to infrastructure. Aussie cost are too prohibitive.

Tight gas is different and although expensive is viable in Australia due to the high price it can command versus the USA where the price has plummeted to about $A3. In WA you can get $A7 and shortly you will be able to get $A7 plus on the East Coast when the Gladstone plants get rid of the surplus ramp up gas and export it at international prices. Co's such as SXY, DLS, BPT, ORG, STO will produce profitable tight gas/wet gas into a high priced market.

Shale oil has been fantastic for the USA. The trouble is it was bred from $100/bbl and cheap finance.
They added 5 mbpd which is impressive. It is falling as we speak. It is a ponzi and cannot survive on $50 oil. The cheap finance has gone.

55 0f the 60 odd shale oil co's have serious cash flow problems. When their hedging expires shortly they will face bankruptcy. At the moment they are being funded by misguided private equity. Rest assured when that runs out there will be no back up from the banks.

They will be gobbled up by the Majors and when the price of rises again ( as it surely will ) then the stronger shale oil co's will re-emerge. But remember, there is only so much shale oil and in about 2022 this source of energy will decline. The easy fruit has been/ is being plucked.

Oil , a precious finite resource. ....And that's why the world is going to gas. A much need transmission fuel until economic alternatives are developed.

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Yes, I get all of that, you have made it very clear... Now ignoring the price of gas, where is this gas going to be found? Where are these discoveries going to be made?

SXY Price at posting: 25.0¢ Sentiment: None Disclosure: Not Held
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