It was actually on SBS (unless things are different across the country). I accidentally stumbled across it before watching Gerro win the Liege-Bastogne-Liege cycling (fantastic race). it was called "Fracking: The new energy rush" and the synopsis was:
"Geologist Iain Stewart investigates a new and controversial energy rush for the natural shale gas found deep underground. This new supply has slashed the price of electricity, kick started a renaissance in manufacturing and driven down carbon emissions. Getting it out of the ground involves hydraulic fracturing - or fracking. Iain travels to America to find to find out what it is, why it is a potential game changer and what we can learn from the US experience. He meets some of the people who have become rich from fracking as well as the communities worried about the risks."
I thought it was reasonably well balanced, but was constrained for time which meant that sections were rushed or over simplified. My overwhelming thought was that it was an advertisement for the UK shale industry using US examples, but it did raise some interesting points.
I found the following quite interesting:
1. The ability to 'see' where the frac had 'gone' was fantastic. The technology is first class and when combined with expertise makes for a low risk operation. It also demonstrated how many layers are above the frac zone and how small the frac zone is in relation to the depth.
2. There was no evidence to link fraccing to the contamination of any water source with methane (or anything else). Rather, instances of contamination were stated to be due to poor well construction.
Essentially, there is nothing there that regulation can't mitigate against. The overwhelming message for me was that there is a risk involved, but that risks can be mitigated. Nothing can be proven to be safe (in any industry or activity); it is simply a case of risk mitigation.
Hopeful(l)guy - I stick to saying that I hope that people don't dump at twenty cents if/when it gets to that level. I am not an expert, but I feel that there is a monster under there and if that is the case, the market cannot ignore it - especially given NSW's current situation. I honestly feel that we are where we are due to BOF (gone) and management inactivty (we are now set to drill a well). Prior to that we were at multiples of this price - the gas has gone nowhere and the regulatory regime will hopefully shape to common sense and the needs of NSW.
MEL Price at posting:
8.4¢ Sentiment: Buy Disclosure: Held
