the road to $40 - key dates, page-7

Ah Wally, going off half cocked as usual.

Sure China have a lot of Shale Gas, one of the biggest reserves in the world. Although apparently quite a bit is in geographically challenged area's. Which doesn't mean it can't be accessed, just that it will be more expensive to do so.

They have also declared shale gas a separate commodity, this will enable foreign companies to 'invest' in exploration. Exxon/M and Chevron are the only two companies to 'sign up' to date. You know the ones, their making huge investments in Australian LNG and processing hubs, ports etc. I guess you should send them an email real quick and let them know they are making a huge mistake and wasting their money.

China as always look at the far longer picture, they are in no hurry to prosecute their reserves. They will spend the next 3-5 years simply mapping the 'where and what' of it. Whilst they buy in to foreign shale gas companies and let then develop the technologies and techniques to which best recover such, both economically and environmentally.

Then there is the infrastructure, drilling, piping, hubs, processing plants, power stations etc etc. Given their size, population (at least 93 cities by 2020, larger than Sydney), China have an estimated 1.4 billion people at present, this will take some time and it wouldn't surprise me to be ongoing for a generation or so.

In the mean time the foreign businesses that invested will probably be exporting around 2025+ to some degree. However like in the fashion of oil, the market will not be flooded, it is not in the interests of the Countries that hold the reserves, nor the companies recovering and selling such to do so. They too have large LNG investments in Australia and getting bigger as we speak.

Most new housing estates and cities world wide have been incorporating natural gas piping and there is a rising trend in utilizing gas again within the domestic homes. cooking, heating etc.

Then of course their is the 'motor vehicle' with companies doing extensive research on converters, petroleum/gas, electric/gas and stand alone gas propelled same.

Oh one other thing, that you'll probably not be interested in. LNG is double the density of Shale gas, which makes it a cheaper and more profitable commodity.

All in all, the future of gas is burning along quite brightly, but thank you for your usual well thought out comment, cheers.