He noted that shale wells not only cost “three to four times” as much to develop as conventional gas wells, their rate of depletion – the amount production declines over time, a natural phenomenon with all wells – is much higher. As a result, the average annual depletion rate across the industry has risen from about 23 per cent five years ago to more than 32 per cent now.

Japan's 10 utility companies, with no more nuclear power to turn to, burned natural gas to a record high in April this year compared to a year ago.Data from the Federation of Electric Power Companies of Japan showed the country used up a record 4.56 million tonnes of liquefied natural gas ( LNG ), a jump of 33 per cent versus the same period a year ago. The corresponding electricity generated from the consumption totaled 70.99 billion kilowatt-hours, up 2.7 per cent from April in 2010. The Australian NG reserves will go to Japan. Chevron, COP & HES all have properties and/or JV they are developing to get LNG to Japan.

Japan, the world’s third-largest energy consumer after China and the U.S., is ramping up natural gas use due to a shortfall in nuclear power output following the earthquake and tsunami last year.Nuclear power provided 30% of Japan’s electricity generation before the earthquake and now all of the country’s reactors are offline. The country’s natural gas consumption surged 27% in the fiscal year ended March 31, helping it avoid major power shortages last summer.Gorgon is over 40% complete and remains on track to ship its first LNG cargo in 2014, while Wheatstone is still targeting first LNG in 2016, Mr. Krzywosinski said. The deal with Tohoku means over 80% of Chevron’s equity output from Wheatstone is now contracted to buyers under initial or binding long-term deals.

BHP Billiton Ltd. (BHP.AU) said Wednesday a natural gas discovery offshore Western Australia state could significantly increase the size of its Scarborough gas field, enhancing its appeal as a potential supply source for gas export facilities under construction on the coast.....BHP wholly owns North Scarborough, located near one of the company's biggest gas discoveries in recent years, held in a joint venture with ExxonMobil Corp. (XOM).