Shale Gas

Shell has just made a shale gas discovery.... in China. If China becomes self-sufficient in gas, you wonder about the billion dollar investments in WA and Central Australia. China is supposed to have the largest reserve of shale gas.

But like the Yanks, modern drilling technology and fraccing technology will have to be employed to extract the gas. The worry always is what the drilling and chemicals will do to the underground aquifers.

If China starts discovering more shale gas, then it is time to think about jettisoning my shale gas stocks. Just Japan and Korea buying our gas is not enough. I think India will have its own, too. After China and US, the third biggest reserve is supposed to be Argentina.... not Australia.