01-27-2013, 01:00 AM
Somehow it has always struck me that the biggest threat to IOC is more from Australian gas exports than any other source. PNG is highly dependent upon AU and there have to be major political and economic interests in AU trying to keep large volumes of PNG NG in the ground so as not to undercut the market AU projects will be selling into.
As to the linkage between NG and oil it seems that fundamentally the relationship should have a strong inverse component. NG is replacing oil in applications with NG native demand increasing at the expense of Oil burning applications. I see very few true "dual fuel" technologies out there where simple switches can be made. I suppose you can argue certain apps like microturbines can go either way there are component and programming switches that have to be made when changing from gas to oil and back. You can't easily do it on the fly. I suspect the same goes for IC engines adapted for NG.
Yes, while all BTUs are not created equal they tend to bear a strong resemblance. There's a long turbulent path ahead in the NG/Oil price relationship. It will be interesting to watch in the years to come, God willing.
Here's an out of the box thought. The high bidder for IOC will submit their bid on behalf of AU NG interests with the express purpose of limiting production and development of the high volume/high capacity reefal structures found in Gulf Province by IOC. Crazy thinking, to be sure. 3tops is certainly large, but just how big are those fish? Idle speculation on a cold day in Chicago.
As to the linkage between NG and oil it seems that fundamentally the relationship should have a strong inverse component. NG is replacing oil in applications with NG native demand increasing at the expense of Oil burning applications. I see very few true "dual fuel" technologies out there where simple switches can be made. I suppose you can argue certain apps like microturbines can go either way there are component and programming switches that have to be made when changing from gas to oil and back. You can't easily do it on the fly. I suspect the same goes for IC engines adapted for NG.
Yes, while all BTUs are not created equal they tend to bear a strong resemblance. There's a long turbulent path ahead in the NG/Oil price relationship. It will be interesting to watch in the years to come, God willing.
Here's an out of the box thought. The high bidder for IOC will submit their bid on behalf of AU NG interests with the express purpose of limiting production and development of the high volume/high capacity reefal structures found in Gulf Province by IOC. Crazy thinking, to be sure. 3tops is certainly large, but just how big are those fish? Idle speculation on a cold day in Chicago.