10-06-2013, 06:35 AM
Our next resource boomer
JOHN FLINT
661 words
9 Jun 2013
Sunday Times (Perth)
SUNTIP
English
© 2013 News Limited. All rights reserved.
WA'S shale gas potential is ``quite amazing'' and could spark the next great resources boom, says the head of the state's Department of Mines and Petroleum.
Director-General Richard Sellers is excited over the untapped gas riches beneath the Kimberley in the vast Canning Superbasin.
But crucial drilling and testing over the next two years will determine whether it can herald a bonanza or fall short of its huge promise.
Shale gas has been hailed as the saviour of the US economy, supplying cheap energy to its industries.
In an exclusive interview, Mr Sellers said shale gas from the Canning and the smaller Perth Basin could produce ``another major growth phase'' for the state.
In 18 months to two years we would know the scale of the opportunity with Buru Energy, in a joint venture with Japanese conglomerate Mitsubishi, at the most advanced stage of exploration. Buru has the biggest acreage in the superbasin, which stretches 530,000sq km across the Kimberley and is almost as big as Texas.
``I think the shale gas potential in WA is quite amazing,'' Mr Sellers said. ``On a world scale it is right up there, No.4 or 5 in the world in terms of potential shale gas reserves.''
If the exploration is successful, commercial production would be five to 10 years away.
The estimated 288 trillion cubic feet of gas in the Canning Basin alone is the equivalent of 500 years-plus of domestic gas consumption based on current usage.
Mr Sellers said shale gas production had taken the US from being a net energy importer to an exporter for the first time in 60 years, creating between 1.5 million and 1.7 million jobs.
``For us there is the potential to feed it into some existing networks,'' he said. ``There is potential for there being enough gas for liquefied natural gas. There is potential for there to be enough gas to unlock some of the very large mineral deposits that haven't been unlocked to date because of lack of infrastructure and energy. And all of those things are very exciting opportunities for Western Australia.''
On a note of caution, he said: ``The unfortunate thing is that as it's being looked at in its very early stages no one can predict whether it's a small growth opportunity, a medium growth opportunity or a large growth opportunity. But just on the 288 trillion cubic feet predicted for the Canning Basin, that is an incredible amount of gas in anyone's language and at the right price could create a very large growth phase again for Western Australia. While the jury is out on how it is going to evolve I think the early success of Buru and others shows there's more than just a sniff there.''
Stedman Ellis, of the Australian Petroleum Production and Exploration Association, the industry's peak body, agreed the next two years were crucial.
``In the Canning Basin it's clear WA has a remarkable natural gas resource,'' he said.
``I think with this relatively early stage exploration and appraisal activity, the results will be very important in encouraging further interest and investment.
``While the (Canning) resource that has been identified is very large, it is in a very remote area, it is distant from infrastructural pipelines, and the cost of drilling in those areas is relatively high compared to other parts of Australia and overseas.''
Investors would not only be looking at the drilling results.
``They'll also want to see some confidence around the predictability of the regulatory regime and the work that's been done to ensure that communities are being taken on the journey with the industry,'' Mr Stedman said. ``That's going to be particularly important in the Canning Basin where you are dealing with traditional owner communities and the legacy of the Browse project and the angst that might have created.''
News Ltd.
Document SUNTIP0020130608e9690000u
JOHN FLINT
661 words
9 Jun 2013
Sunday Times (Perth)
SUNTIP
English
© 2013 News Limited. All rights reserved.
WA'S shale gas potential is ``quite amazing'' and could spark the next great resources boom, says the head of the state's Department of Mines and Petroleum.
Director-General Richard Sellers is excited over the untapped gas riches beneath the Kimberley in the vast Canning Superbasin.
But crucial drilling and testing over the next two years will determine whether it can herald a bonanza or fall short of its huge promise.
Shale gas has been hailed as the saviour of the US economy, supplying cheap energy to its industries.
In an exclusive interview, Mr Sellers said shale gas from the Canning and the smaller Perth Basin could produce ``another major growth phase'' for the state.
In 18 months to two years we would know the scale of the opportunity with Buru Energy, in a joint venture with Japanese conglomerate Mitsubishi, at the most advanced stage of exploration. Buru has the biggest acreage in the superbasin, which stretches 530,000sq km across the Kimberley and is almost as big as Texas.
``I think the shale gas potential in WA is quite amazing,'' Mr Sellers said. ``On a world scale it is right up there, No.4 or 5 in the world in terms of potential shale gas reserves.''
If the exploration is successful, commercial production would be five to 10 years away.
The estimated 288 trillion cubic feet of gas in the Canning Basin alone is the equivalent of 500 years-plus of domestic gas consumption based on current usage.
Mr Sellers said shale gas production had taken the US from being a net energy importer to an exporter for the first time in 60 years, creating between 1.5 million and 1.7 million jobs.
``For us there is the potential to feed it into some existing networks,'' he said. ``There is potential for there being enough gas for liquefied natural gas. There is potential for there to be enough gas to unlock some of the very large mineral deposits that haven't been unlocked to date because of lack of infrastructure and energy. And all of those things are very exciting opportunities for Western Australia.''
On a note of caution, he said: ``The unfortunate thing is that as it's being looked at in its very early stages no one can predict whether it's a small growth opportunity, a medium growth opportunity or a large growth opportunity. But just on the 288 trillion cubic feet predicted for the Canning Basin, that is an incredible amount of gas in anyone's language and at the right price could create a very large growth phase again for Western Australia. While the jury is out on how it is going to evolve I think the early success of Buru and others shows there's more than just a sniff there.''
Stedman Ellis, of the Australian Petroleum Production and Exploration Association, the industry's peak body, agreed the next two years were crucial.
``In the Canning Basin it's clear WA has a remarkable natural gas resource,'' he said.
``I think with this relatively early stage exploration and appraisal activity, the results will be very important in encouraging further interest and investment.
``While the (Canning) resource that has been identified is very large, it is in a very remote area, it is distant from infrastructural pipelines, and the cost of drilling in those areas is relatively high compared to other parts of Australia and overseas.''
Investors would not only be looking at the drilling results.
``They'll also want to see some confidence around the predictability of the regulatory regime and the work that's been done to ensure that communities are being taken on the journey with the industry,'' Mr Stedman said. ``That's going to be particularly important in the Canning Basin where you are dealing with traditional owner communities and the legacy of the Browse project and the angst that might have created.''
News Ltd.
Document SUNTIP0020130608e9690000u