The Browse LNG project is one of epic proportions. It is a plan to gain access to natural gas reserves in western Australia. The project is being undertaken to tap natural gas reserves of over 13 trillion cubic feet. Although some shares are still up for sale, there is several global corporations that are involved in this, including BP, Chevron, and Royal Dutch Shell. The entire plan is being held up by Australia's Native Law that protects the land rights of Aboriginal people. They seemed to be for the plan until a division broke between two native tribes. The Western Australian Premier mentioned something of a compulsory acquisition which angers some of the indigenous people.
This project, estimated at $30 billion, would allow the energy industry to grow immensely. It is a pivotal investment to some of the largest corporations in this industry. It has been stalled for months now and the continued stalling is going to hurt the companies that have contributed. With funds tied up in this project, it stunts their ability to invest elsewhere, in plans that are moving. It will be a great burden to these corporations and the natural gas industry itself. It is key that it gets moving as planned but it is all up to the Australian government and if they can do a good job of convincing the Aboriginal people that is, in fact, beneficial to them. As of now, it is a stand still, and the industry will stand idle as well.
http://online.wsj.com/article/SB10001424052748703882304575466552910021166.html?mod=WSJ_Energy_leftHeadlines
This is an interesting story because I wrote my memo about Indian government starting a new shale gas exploration program. It is unfortunate that the deal has stalled because of land rights, but I hope they reach an agreement soon because programs like these, in my opinion, should help the energy industry. Once the technology is in place, natural gas extraction from shale and other deposits will be easier and more efficient. It is already a cleaner fuel than coal, so it can help both the industry and the environment. This form of energy could ease our dependence on oil and coal while we find other long-term solutions. As for the energy industry itself, this will help it to grow and stay up to date, necessities for any business.
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