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Gold/Mining/Energy : Big Dog's Boom Boom Room
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Recommended by:
bruwin
CommanderCricket
dvdw©
isopatch
To: bruwin who wrote (191495)7/9/2015 7:24:17 PM
From: E_K_S4 Recommendations  Read Replies (1) of 206089
 
Energy equivalent of MMBtu to BOE (NG/Oil)

I was doing some energy equivalent calculations to see how NG (MMBtu) prices compare to Oil (BOE)

1 boe = 5.5513652248856 MMBtu

From Bloomberg Web Site
Energy & OilCrude Oil & Natural Gas
(Prices as of the close 7/8/2015)
WTI Crude Oil (Nymex)
USD/bbl. $ 52.75

Natural Gas (Nymex)
USD/MMBtu $ 2.74
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The equivalent BOE price in terms of NG is $15.21/BOE
($2.74 $/MMBtu x 5.55 MMBtu = $15.21 BOE)

$15.21 BOE vs $52.75/bbl WTI
(Note: You pay 3.47x more for Oil than NG in equivalent Energy unit!. This is close to highest I have seen)

I suspect at some time we would get a reversion to the mean



On an energy-equivalent basis. natural gas is 75% cheaper than oil!



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I know it cost more to process NG, convert to LNG, store and distribute but it still must be more cost effective to use even when you add these cost to the end user price. Do you provide your clients any of the economics in NG vs Oil when you do your analysis/consulting work?

What are some of the other factors you and/or the industry uses when pricing out a LNG project especially the added costs and/or other project considerations in NG vs Oil?

I can see the long term benefit in developing large NG fields especially w/ the significant energy equivalent price difference. Maybe well depletion is much more for NG.
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This is exciting news for Woodside Petroleum Ltd. (WOPEY) - Subject to approval and registration, Woodside’s participating interest in the Browse resources will be 30.6% (net Woodside 2C share of 4.7 trillion cubic feet of dry gas and 138.6 million barrels of condensate).
Australia: Browse FLNG development enters FEED phase

The Browse FLNG Development concept is based on three FLNG facilities utilising Shell’s FLNG technology and Woodside’s offshore development expertise to commercialise the Brecknock, Calliance and Torosa fields (gross (100%) contingent resources (2C) of 15.4 trillion cubic feet of dry gas and 453 million barrels of condensate).
As part of the entry into the FEED phase, the Browse Joint Venture participants entered into an Equity Alignment Deed (EAD), which comprises a series of exchanges of equity interests between the participants, establishing a single aligned interest for each of the participants across the combined Browse project. No monetary consideration was payable in respect of the EAD.


EKS
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