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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (166870)	4/6/2012 2:39:45 PM
From: t4texas	Respond to of 206185

is it to be believed the two foreign oil companies are assuming ALL the investment and exploration risk with the chinese, and then when everyone has an idea of what is down there in the shale they will all participate in the development? since i know how chinese government run companies "like" to pay their bills, these two foreign oil companies are starting out by making a mistake in this joint venture. there is no reason shell and hess should provide the know how and the investment money to do the job. they should get paid up front for their efforts, because the chinese govt. companies, including oil, love to owe the vendors until the next time the govt. company needs something else.

To: Dennis Roth who wrote (166870)	4/26/2012 5:57:01 PM
From: Dennis Roth	1 Recommendation Read Replies (2) \| Respond to of 206185

Shell bullish on China shale gas Thu Apr 26, 2012 7:40am EDT reuters.com * Shale gas seen economic in China * Govt policy, not geology more likely to determine pace By Tom Bergin LONDON, April 26 (Reuters) - Royal Dutch Shell gave a bullish outlook for the development of shale gas in China on Thursday, saying the Anglo-Dutch oil major's drilling there suggested vast resources could be unlocked at a relatively low cost. Chief Financial Officer Simon Henry said Shell had not yet determined the cost of producing shale gas in China but that it would probably be within the $2 to $6 per million British thermal units (Btu) seen in North America, a level that would be competitive with alternative gas sources. "We completed 11 wells last year; we hope to effectively double that this year ... We are seeing a mixed range of outcomes, everything from pretty poor reaction to excellent," he told reporters on a call on Thursday. The development of hydraulic fracturing, or "fracking", as a technique for extracting natural gas from shale rock has led to a surge in gas production in the United States that has driven down energy costs and reinvigorated U.S. industry. The U.S. Energy Information Administration has said China has even larger shale resources than the United States, but many companies have questioned whether the resources can be developed economically. Henry, who also has executive responsibility for overseeing Shell's China operations, said it was more difficult to extract gas from Chinese reservoirs, on average, than what Shell had seen in the United States. But he expects production costs to come down, making Chinese shale economic at the $5 to $6 per million Btu level that Shell receives for its current, conventional gas production in China, and well below liquefied natural gas (LNG) import prices of around $16 per million Btu. Shell is the most active of the western oil and gas groups in Chinese shale, and Henry's view that geology or economics should not prevent China from experiencing its own "shale gale", are among the most bullish from an industry executive so far. Nonetheless, he said Chinese energy policy remained the wild card. Whereas the U.S. explosion in shale drilling has been driven by the private sector, he said Beijing would have to give its approval for a similar expansion in Chin