bhp on shale

Have just reviewed presentation by Michael Yeager ( BHPB Petroleum CEO ) given at this years APPEA Conference.

Presentation was on rise of Gas as energy source. He discussed the key factors required to replicate US Shale success. Key factors were:

1. Attractive geology. Tick.
2. Large hydrocarbon market. Tick as have LNG market.
3. Low population density in development area. Tick for BPT in Cooper basin. Not so good for CSG or Otway. .
4. Rig and service availability. Not so good at present in Australia but more likely a factor in developments phase. Also, understand the Chinese can build a land rig in 6 weeks.
5. Pipeline network. Not sure of status here. But pipeline to Gladstone should be doable in relativey short time.
6. Attractive fiscal terms. Better than most worldwide. Indeed, PRRT rarely payable on LNG projects.
7. Supportive regulatory framework. Outside the greenie, farmer, vigneron zone this is present. To extent will placate greenies, farmers, vignerons CB. Shale will enjoy support. Not so good for Otway.
8. Landowners benefit. Long history of oil and gas in CB.

In short, BPT CB Shale would seem to tick most of the boxes necessary at this stage. And it would be spare change for BHPBP or any other major oil and gas company.