keeping it real

Extremely sad to see news of Clive's departure from the board for whatever reasons they may be. He is to be praised and congratulated for his efforts in bringing the company to where it is today. NEPSYS certainly couldn't have gotten to this stage without him.

That aside, from the investors' point of view, the facts of the O&G industry basically remain the same, as outlined by this article from www.doir.gov.au Even by default, the Neptune group will pick up business from not only the WA/NT region, but also internationally, simply by being a player in the boom. (And I very much doubt that the "default mode" is what Christian has in mind for the company's future.)





A new report commissioned by the Department of Industry and Resources has forecast that Australia's oil and gas industry will grow at two to three times the rate of the economy for the next 20 years.
The report, titled The Oil and Gas Industry: Expenditure Trend and Service Providers, estimates that Western Australia will account for about 60 per cent of capital expenditure on liquefied natural gas (LNG) terminals in the Asia Pacific region and approximately 10 per cent of global expenditure over the next five years.
The report identifies the oil and gas industry as one of the nation's largest industries with significant growth potential.
It also outlines a range of opportunities for Western Australian industry.
The report found WA's oil and gas services industry generates revenue of about $1 billion annually and is growing rapidly.
The oil and gas services industry is estimated to have global revenue of about US$120 billion each year.
Western Australia already has a strong position in the gas sector, particularly LNG, with the State accounting for 7 percent of global production and 18 per cent of LNG trade with the Asia Pacific region.
The report also indicates that the State could become a much larger regional and global contributor to the industry, with the potential to achieve a five to tenfold increase in revenue over the next decade.
The major areas of opportunity for Western Australian
companies are in the development, maintenance, modification and operation of upstream and downstream oil and gas facilities.

Trends outlined in the report show the scales
tipped in WA's favour
· A shift from oil to gas - WA has vast gas
resources, and projects such as the NW Shelf
and Gorgon are world scale.
· Geographic production shifts - oil and gas is
shifting away from Western Europe (including
the North Sea) and the USA to new regions
including Africa, South America and the Asia
Pacific.
· Customer shifts - the Asia Pacific is the fastest
growing region for gas consumption. WA is well
placed to supply this region which includes
Japan, China and the west coast of the USA.
· Technology changes - many of WA's and the
Northern Territory's current and proposed
projects will use the latest technology in subsea
exploration.
· Systems changes - many companies are
demanding integrated service providers and
WA has strong capabilities in this area.