IMHO, power generation, production of nitrogen (if you live on a farm like I do, you'd know what it is like to source and pay for nitrogenous fertilizers as well), and the conversion of CSG to naphta/diesel fuel is not to be discarded either.
Let's face it. The price of crude oil at one stage of the game did become prohibitive, and everyone would have noticed what it did caused to the world economies. Also Countries and people around the world, IMHO are sick and tired to be at the mercy of the very unstable Middle East, and will try anything to get away from that stranglehold. Think about it, anyone has to whisper that Iran may be doing this or doing that, and that Venezuela is doing something else and the price of crude goes ballistic in fear of a short supply. Hence why the majors are looking at investing in Australia and in something that will possibly replace some of the crude oil demand. I remember reading in an article that an American Scientist predicted that in the not too distant future Gas will overtake the oil demand. It would only need some car manufactures to design,(and that is not at all impossible), an engine that will run with gas and bingo we have a win. We already have some trucks here fitted with some gadgets that convert Gas to diesel fuel on demand. I recall reading that somewhere as well. And in the country that I was born, I recollect using Methane gas to run our cars instead of petrol as well because of the costs.
So IMHO CSG has many advantages and application that IMHO will support increase demand and usage. Yes even domestically and not necessarily having to be exported. And from what we know, more applications could even be found and adapted to it just around the corner.
I am positively sure that the majors would know a hell of a lot more than us. Hence why they are pouring in big money.
Buddy
AOE Price at posting:
$5.16 Sentiment: None Disclosure: Held
