Coal seam gas in Qld [and around the World] and then the recent shale gas boom. These 2 things served to keep a lid on energy prices, as well as satisfying energy needs.
UCG is still a novel idea by comparison.
The delay imposed by the Qld Govt is a good thing for UCG because it has imposed a strict discipline on the technology which will enhance its reputation in the long term.
The shale gas boom is already starting to lose some of its momentum. The high depletion rate and expense has reduced some of the initial enthusiasm. Waiting in the wings is UCG. Much easier to estimate the costs and JORC gives reliable production expectations. These attributes guarantee it will take its place in the energy sector.
I, like many others, imagined UCG would take off quickly. Instead it is now clear that it is an 'over the horizon' investment. Perhaps in the next 5 years it will establish itself.
In the mean time Linc will need to act wisely.
LNC Price at posting:
$1.53 Sentiment: None Disclosure: Not Held
