RE: StuffThanks for posting that as that's the kind of thing I like to read about. Because then I can think of a few more things I'd like to know about. All the angles here.... Like the pipeline(s). Wouldn't it be better to build that with the idea that any excess capacity will eventually be utilized?? Like one of those articles stated, it made no sense to build out 4 or 5 different pipelines into Kitimat. Or how about the present consortium adding another partner, maybe a giant Asian energy company looking for Canadian gas asset (like a piece of a busy export facility that's booked solid for YEARS or how about a pipeline and/or fianancing?) to export this nat gas to itself in....wherever and that's after signing one of those long term contracts?? Sign the contract and build the facility. And if one of the partners doesn't want to go along, pay them off and sell their share. From what I hear there would be a long line of interested parties, I'm sure. The possibilties ARE endless right now....
I recieved an email a couple weeks ago and it was from a newsletter outfit called The Energy Investor and they had an interesting clip-pitch. Usually I'm not interested but having a knowledge about this rather unique opportunity this Canadian LNG export stuff represents, soon as I saw his headline I was....interested, at least enough to listen. I'll post it because if you know about what we've been talking about here for anytime at all, the story alone should interest you. I already subscribed to one of their other NL's so I knew the author was familiar with his subject. And the subject of this email is the same subject we're talking about. I'm not offering up any spam. Just a chance to HEAR someone tell you what we ALL know already anyway....that THIS is a GREAT opportunity. That you're here on this particular board and most likely have an investment in Encana shows YOU're already ahead of the herd as well. Here it is, click the link at the end of the email where it says, This is how they're going to do it. It's worth the listen....
China's Jealousy Rages On
By Keith Kohl | Saturday, March 10th, 2012
For the last few months, we've talked about China's growing affinity to natural gas, particularly the unconventional variety.
Ever wonder why the Chinese have been investing so aggressively in U.S. and Canadian shale plays?
Trust me, you don't spend billions of dollars investing in someone else's backyard on a whim.
But China has good reason...
Actually, they have
1,275 trillion good reasons.
That's how many cubic feet of natural gas are tucked away under Chinese soil:
The problem for the Chinese isn't the quantity of gas, but rather how they plan to develop it.
By offering a helping hand to North American gas companies, China gets a much more valuable reward: technology.
Because what's worse than the stress of securing energy for billions of people with an insatiable demand appetite... is having all that gas at your fingertips and not being able to extract it.
That's precisely the bad news Exxon Mobile Corp. gave the Middle Kingdom recently.
You see, one of the reasons shale gas production in Canada and the U.S. has been so successful is developers are utilizing drilling techniques like hydraulic fracturing.
Without the ability to fracture the rock, you can't produce the gas.
China was hoping they could use similar techniques to unlock their own resources...
Unfortunately, they can't — at least, that's what Exxon's top exec said earlier this week.
Apparently, some of the formations in China and Europe have proven impervious to these drilling techniques.
Now their only hope of tapping into this massive resource is to go back to the drawing board and come up with a new method to reach the trapped gas.
That could take years, maybe decades... and that's assuming a breakthrough even happens.
This setback couldn't have come at a worse time for the Chinese. Their natural gas imports in January were 66% higher than the year before.
This also means natural gas companies will be lining up to turn China's geological misfortune into a cash cow.
Not surprisingly, the smart money understands exactly where China will have to go for their gas supply...
Four gas stocks in particular are already three steps ahead of the game and making those deals right now. This is how they're going to do it.
Until next time,
Keith Kohl
Editor,Energy and Capital