Investors are well aware of the shale oil revolution in the United States. But the "revolution" does not end here; it is spreading globally to countries as diverse as China and Poland.
There is one country in particular though that may experience circumstances similar to the United States, if not greater.
I'm talking about Australia, which has often been called "The Lucky Country." That description was first penned in 1964 by Donald Horne and he actually meant it negatively at the time.
But in recent decades, the term has been given a positive spin thanks to Australia's abundance of natural resources and its geographical location near the world's biggest consumer of commodities - China.
And Australia may have struck luck again thanks to the recent announcement of a massive shale oil discovery.
Australia Oil and Gas Discoveries
Australia has already been in the forefront of new oil and gas production, used to feed the hungry Chinese dragon next door.
The country is scheduled to, within several years, surpass Qatar as the world's largest exporter of liquefied natural gas (LNG). That is largely thanks to massive quantities of natural gas found off its northwest shores in the Browse Basin and elsewhere.
Royal Dutch Shell (NYSE ADR: RDS.A) has actually ordered the building of a $10 billion vessel to be used as a Floating Liquefied Natural Gas (FLNG) terminal. The vessel is intended to spend most of its time above Prelude, a natural gas field about 120 miles off Australia's coast.
It will be the world's largest offshore facility and is expected to be operational in 2016. It will weigh 600,000 tons, be six times bigger than the largest aircraft carrier (534 yards long and 81 yards wide), and be anchored by an 11,500 ton turret.
But that's offshore. The excitement is now building for onshore oil and gas in Australia.
The Nascent Australia Shale Oil Industry
Prior to the recent discovery in Australia, the U.S. Energy Information Agency had estimated that Australia already held the fifth-biggest shale gas reserves in the world. Geoscience Australia, the country's geological agency, believes there is at least 400 trillion cubic feet of shale reserves as well as 20 trillion cubic feet of "tight gas.'
No wonder some of the world's oil majors are rushing in.
France's Total S.A. (NYSE ADR: TOT) recently announced plans of up to a $200 million investment into shale assets in central Australia. Chevron Corp. (NYSE: CVX) also is investing into Australia's emerging shale industry. It is paying up to $350 million for stakes in two shale projects.
February also saw a deal between China's PetroChina Company Ltd. (NYSE ADR: PTR) and ConocoPhillips (NYSE: COP) to search for shale gas in western Australia.
It is estimated that more than $1 billion will be spent drilling and exploring Australia's shale reserves over the next couple of years.
The Latest Major Australia Shale Oil Discovery
That does not include the exploration in the region of the latest discovery. That discovery occurred in an area of the country called the Arckaringa Basin around the town of Coober Pedy.
Money Morning's Global Energy Strategist, Dr. Kent Moors, says that the discovery "could be the largest shale oil find ever recorded."
It could contain as much as 233 billion barrels (or $20 trillion worth) of recoverable shale oil!
To put that into perspective, the 233 billion barrels is a mere 30 billion barrels shy of the estimated reserves of Saudi Arabia. It is also bigger than the Athabasca oilsands in Canada, which are estimated to hold about 170 billion barrels of proven or probable reserves.
For investors, the real investment play here is with the companies coming in to provide the essential working capital for field development and to provide the essential field services to pull it all off.
You can learn more about this exciting new find - and its investment opportunities - in our new report on this massive Australian shale oil discovery.
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One little factor to remember about the shale oil find in Australia is that it sits right underneath the Great Artesian Basin, which is a major underground water resource used for irrigation, drinking water etc. The extraction of shale oil would put this vast and crucial underground water resource at risk. This therefore will become a huge bone of contention which could put the exploitation of shale oil in this part of Australia at risk.
No it doesnt-you need to check your geological map-it also shows you have no understanding of basin structure.They are two separate basins and therefore not linked
On the. arckariga Basin discovery, how can my husband & I invest & make a little money when we can't pay the fees to know the names to invest in.
He coached & taught 40 years , & I taught 30 years. I guess this is how the poor stay poor & the rich get richer .
Alyse Michalka
Alyse: I would think that you have investment counselors and companies in Australia just as we do in America. I read the article about your oil reserves a few weeks ago and am now going to invest everything I have saved into your oil fields, through an investment firm, in the hopes that my $4,000.00 will eventually provide something for me and my family. It certainly appears to be a good possibility and I certainly hope that my investment firm will research it and put the money into the best possible company.
Stan
As stated by the chief executive of Linc Energy, Mr Peter Bond on January 24th 2013 in the Sydney Morning Herald news paper $ 20 trillion is not our valuation,I don't know who started that ? It's way too early and it's too hard to come up with a reliable figure.
Whilst it's a large find, no one in Australia expects it to be worth anything like $ 20 trillion.
regards
Phil Taylor
Victoria, Australia