On a thread yesterday concerning Chinese fracking, I sent you a link to a story about CNOC's purchase of high-tech automated German rigs that only require four personnel. This makes no sense economically, since their wage rates are one-third of ours. Plus the capex is much greater, double perhaps. What it flags to me, however, is the desperation of the Chinese to develop their unconventional resources, along with their inability to get technology transfer from their JV partners Chevron, etc. The majors are wise to the Chinese brain suck. Your five year estimate sounds right.
What it flags to me, however, is the desperation of the Chinese to develop their unconventional resources, along with their inability to get technology transfer from their JV partners Chevron, etc. The majors are wise to the Chinese brain suck. Your five year estimate sounds right.
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jeeze louise you would think that the whole world would be wise to the Chinese brain suck by now. The Chinese had been offering the Russians a ridiculously low price for Russian natural gas for a decade and then suddenly it appears the Chinese accepted terms closer to what the Russians were getting from Europe. Why? I was thinking that the Chinese were getting more push back in the south china sea than they anticipated. as well, seems to me I’ve heard that the Chinese will likely get to produce top of the line russian armaments...which means the russians will be paid for the first batch off the line but later batches—not so much. The russians will be exporting a lot of natural gas but it won’t get started for another 5 years. in the meantime they have to invest 40 billion to install the pipelines on their side of the border. The chinese have to invest something like 25 billion on their side of the border to get things up and running.
The links you posted suggested that the Chinese are going to make their first natural gas production goal from their own fields next year—which bodes well for them making the next much higher goal in 2020.