you know there's an energy crisis when...

(1) Saudi Arabia starts considering sourcing energy from nuclear!

http://www.dailytelegraph.com.au/saudi-arabia-to-explore-nuclear-and-renewable-energy/story-fn6e1lzz-1225995025136

(2) When multi-nationals invest over $30 billion in the CSG sector in Australia, with contracted CSG to LNG sales of over $200,000,000,000.

(3) When many of the world's largest oil producing nations have past their own national peak oil.

(4) When China has power blackouts NOW, as their energy consumption is expected to rise strongly:

http://www.theaustralian.com.au/business/news/bad-summer-of-power-shortages-threatens-china-economic-growth/story-e6frg90o-1226080200850

(5) When the world's energy consumption goes up, at the same time as the world wants to limit carbon emissions

(6) When there are two competing interests in Australia for the same gas - LNG exporters, and domestic gas-fired power.

(7) When the fourth biggest gas consumer in the world, Germany, decides to phase out nuclear as part of its fuel mix (nuclear accounts for 20% of its current energy, and will be completely phased out within 11 years, starting now)

(8) When an earthquake and tsunami wipes out the equivalent of 8mtpa worth of gas-equivalent power-gen in the form of the Fukushima nuclear plants, and the Japanese government does a U-turn on nuclear as a way forward.

(9) When the IEA describes the next few decades as "a golden era for gas"

(10) And when many of the world gas assets are owned by State-run enterprises, and therefore are not open to multi-national companies to invest in.


And, here in Australia, we have at least 3 LNG projects who are short of the gas they require. And there are very few remaining independent gas companies with CSG reserves which can make a meaningful difference to these LNG projects.

Can any of us imagine that these remaining independents will not gain significant value and go up the foodchain? The only questions remain as to to which multi-nats will secure the remaining gas, when they will have to secure it, and at what price they will have to pay to secure it.

Yaq