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Recoup · Guru

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Duh · Guru

I couldn't see any date for this report, is it a hoax or fair dinkum ?? confuse

Fantastic if it is true, no more being held to ransom by rich Arab nations ! smile

I reckon our news stations would have picked up on it by now if it was true ? confuse

-- Edited by Duh on Monday 15th of July 2013 04:06:55 PM

herbie · Guru

This is just another get quick rich storey..Yep there is a lot of un taped resources under the surface of our great land, but I recon that is where most of it will stay.Due to the very high cost of doing business in OZ.

In a mining mag I subscribe to I was just reading that the Gorgon project in WA lost $30 million gas contract with Korea which means 35 per cent of it's volume from the 15.6 million tonns a year venture is now uncontracted.

Woodside will be taking a $780 per cent hit to it's earnings due to over supply now.

East Africa and USA are coming in with cheaper new supplies.

Santos senior executive said the high taxes and high cost of building new projects in Oz would kill any development here.

USA has just granted a second project to export to countries with out a free trade agreement .

Russia want's to redirect gas and oil to Japan and China as demand dips and and prices in Europe reduces.

$150 billion of investment will be lost if the high cost in Oz is not fixed .

And as for 20 thousand people flocking in to Coober Pedy, I know this not to be true from speaking to a mate who works in a gold mine not far out from there. For years drilling companies have been drilling core samples from all around that area and yep there is oil in those there hills but with all the environmental and Aboriginal land rights and so forth it is just is not worth extracting it out in our life time to do any thing about it....While I was working not far from there every other month some two bob company would turn up and spread all these high flying rumours re same thing in the hope unsuspecting investors would invest in what ever they were selling.

-- Edited by herbie on Monday 15th of July 2013 09:25:52 PM

Wandering Whitfields · Veteran Member

An investment opportunity ,nowonder, they want to keep this secret, the Americans want to invest in our oil we don't know much about.

GaryKelly · Guru

How interesting! If true, that's gonna turn the world oil market upside down. Who said the Aussie mining boom was over?

rockylizard · Guru

Gday...

Good ole Google ... the enquiring mind's oracle.

The above article from moneymorning.com was published 27 Feb 2013.

Here is a link to the Adelaide Advertiser article dated 24 Jan 2013 - http://www.adelaidenow.com.au/news/south-australia/trillion-shale-oil-find-surrounding-coober-pedy-can-fuel-australia/story-e6frea83-1226560401043

So it will all depend on the Govt's attitude to "fracking" apparently hmm

Cheers - John

Gerty Dancer · Guru

Thanks for this link Rocky, we wondered if it was all a scam, too amazing to be true. Remember they tested bombs in those areas, don't suppose a bit of fracking will worry anybody after that.

Its remarkable that this story has not shown up on any of the major news on TV... or did we miss it? What is it with journalists who think the public only want to know about footballers and politicians personal lives???

Recoup · Guru

What is it with journalists who think the public only want to know about footballers and politicians personal lives???

Well I can answer that , they are getting payed to tell us a lot of BS. I don't want to go any further cry .

Cheers Hans

milo · Guru

would be nice to have our own

i always thought or was told our pricing for petrol comes from asia, not Arab , if you know
what I mean? could be wrong...

Keith19837 · Senior Member

I'm not sure about the situation today, but in past decades our fuel price was based on something called 'World Parity Pricing.'

Even though we produce most of our own oil consumption needs; (Heavy oils are less abundant here) the idea behind this was that should we suddenly have to import all/most of our petrol requirements, then there would be no HUGE jump in price. However, every time OPEC (who basically control the price) put the price up (whether for legitimate reasons or not), we still get an increase at our bowsers. 'World parity pricing' was supposed to absorb these hikes (or at least most thereof). Similarly, when OPEC reduce the price, it seems to take forever (if at all) for our bowser price to drop.

An interesting observation. The barrel price of oil is measured in U.S. dollars. Over the last 12 to 18 months, our dollar has gone from (roughly) 70 cents to $1.05 U.S. Therefore, our high dollar was worth almost twice that of U.S. Therefore our 'World parity price' of oil/fuel should have dropped significantly. Well there was a slight drop of less than 5 cents on average (about 2 months ago), but that lasted all of 5 seconds. Now that our dollar has dropped to roughly 91 cents U.S. we're told that the price of fuel will rise due to the rising strength of the 'greenback'.

I don't profess to be an economist and I must admit that Maths is not my strong suit by any imagination. But to me the figures just don't add up. I appreciate that there are many factors in play; but the 'bottom line' is surely that if our petrol was not greatly affected (short to medium term price drop) by our strong dollar, then why is petrol going to rise (up to $2.00 according to ABC news this week) now that our dollar has dropped back? Perhaps an economist or similar member can enlighten me on all this. The research I've done leads to much political/big OilCo 'spin' and few convincing arguments. It'll all change when I'm King.

Short addition: Petrol in U.S. is $2.80 to $3.20 per gallon (4.5 ltrs app). This works out to around 70 plus cents to 80 plus cents a litre. Very rough calculations but you get the general idea. I am led to believe that we produce more crude per capita than the U.S. and import must less refined product per capita than they do.

-- Edited by Keith19837 on Friday 19th of July 2013 09:09:35 AM

Mark · Senior Member

In two words

TAX REVENUES

Anything that people enjoy................costs more.

-- Edited by Mark on Friday 19th of July 2013 08:58:11 PM

D and D · Guru

While the US may promote the concept of free markets this is more talk than action. Many sectors of the US economy enjoy considerable government support in the form of subsidies and one the largest is the petrol industries. God help the US politician who suggests free market pricing should apply to fuel prices - their time as an elected politician will be restricted to the next election. That is the reason why US fuel prices appear so low - it's not that we're getting ripped off so much as the US consumer is surviving behind a wall of government protection - so much for free markets.

That doesn't mean that we're not getting ripped off by the oil companies, just that we shouldn't be basing such judgements on the comparative price of fuel between us and US. The variation in exchange rates as pointed out by Keith are a better indication of how we're getting nobbled by multinational oil companies.

dorian · Guru

D and D wrote:
While the US may promote the concept of free markets this is more talk than action. Many sectors of the US economy enjoy considerable government support in the form of subsidies and one the largest is the petrol industries.

Is it a case of more subsidies or less burdens?

If we removed the plethora of government imposts from Australian fuel pricing, our fuel would cost much less than it does in the US. However, in this stupid country, where diesel is priced higher than petrol, a removal or reduction of these imposts would be touted as a subsidy.