Subscribe free to our newsletters via your
. 24/7 Space News .

Chevron pursues Australian shale
by Staff Writers
Brisbane, Australia (UPI) Feb 25, 2013

Energy giant Chevron is entering Australia's shale natural gas sector.

Under a deal announced Monday, Chevron will pay up to $349 million to farm into two shale prospects covering an estimated 810,000 acres in the Cooper Basin in central Australia controlled by Australia's Beach Energy.

The U.S. Energy Information Administration says the Cooper Basin could yield 85 trillion cubic feet of gas. Australia's current annual domestic gas usage stands at 1 trillion cubic feet of gas.

"The Cooper Basin is a huge potential resource," Reg Nelson, managing director of Adelaide's Beach Energy, was quoted as saying by the Financial Times. "This is ground breaking. This is nation building."

Chevron's announcement follows an exploration deal announced earlier this month between PetroChina and ConocoPhilips for gas in Western Australia.

That brings to $1.03 billion what overseas and domestic oil exploration groups are planning to spend during the coming years to drill and test Australia's shale reserves.

EIA estimates that Australia has the world's sixth biggest potential shale reserves.

While Chevron is one of the biggest foreign investors in Australia, it previously focused on large conventional gas ventures such as its $53 billion Gorgon LNG development in Western Australia.

"We have an industry-leading queue of LNG projects under development in Australia and this agreement provides an opportunity to explore a new, prospective basin and potentially add to our natural gas portfolio," Chevron Australia Managing Director Roy Krzywosinski said of the Beach deal.

"The Cooper Basin is an established petroleum producing basin and provides the opportunity to leverage our expertise in tight gas."

Beach's Nelson said Chevron first approached his company in early 2012, Bloomberg reports.

Cooper Basin has produced conventional oil and gas since the 1960s. So far, Australian oil and gas company Santos has started producing shale from one well in the basin and is actively searching for more, the Financial Times said.

Still, it will take 12-18 more months of drilling until Beach and other explorers such as Santos know if unconventional gas can be produced commercially from the Cooper Basin.

A report in The Wall Street Journal notes that exploration would take years and Chevron as yet has no equity interest in any of Queensland's export terminals where the gas likely would be processed if intended for export to Asia.

"People always ask me what price is needed to make the Cooper viable," Nelson was quoted as saying by the Financial Times. "And the answer is we won't know until we have determined the initial flow rates and the decline curve. Once we know those will be able to determine prices."


Related Links
Powering The World in the 21st Century at

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Sinopec buys $1bn US shale stake from Chesapeake
New York (AFP) Feb 25, 2013
Chinese oil giant Sinopec is investing $1.02 billion in a US shale field as it teams up with Chesapeake Energy Corp. in a 50-50 joint venture, the companies said Monday. China Petroleum & Chemical Corp. (Sinopec) will buy a 50 percent interest in Chesapeake's 850,000 acres in Mississippi Lime shale in northern Oklahoma, they said in a joint statement. The two companies will share the cos ... read more

Water On The Moon: It's Been There All Along

Building a lunar base with 3D printing

US, Europe team up for moon fly-by

Russia to Launch Lunar Mission in 2015

NASA Rover Confirms First Drilled Mars Rock Sample

India plans mission to Mars in 2013

Rover finds gray rock beneath Red Planet's surface

Bleach could hamper Mars life search

Supersonic skydiver's records confirmed

Kennedy Engineers Designing Plant Habitat For ISS

NASA plant study headed to space station

NASA Spinoff 2012 Features New Space Tech Bettering Your Life Today

Welcome Aboard Shenzhou 10

Reshuffle for Tiangong

China to launch 20 spacecrafts in 2013

Mr Xi in Space

NASA briefly loses contact with space station

Temporary Comm Loss Interrupts Crew's Day

Low-Gravity Flights Will Aid ISS Fluids and Combustion Experiments

Progress docks with ISS

Countdown begins for Indo-French satellite launch

NASA Seeks University Participants for Summer Rocket Workshop

Another Sea Launch Failure

ILS Concludes Yamal 402 Proton Launch Investigation

NASA's Kepler Mission Discovers Tiny Planet System

Kepler helps astronomers find tiny exo planet

Searching for a Pale Blue SPHERE in the Universe

Earth-like planets are right next door

A Semiconductor 'Nano-Shish-Kebabs' With 3-D Potential

That's the way the droplets adhere

Acoustic-assisted magnetic information storage

DARPA Seeks to Defuse the Threat of Ionizing Radiation

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement