Australia has ambitions to dethrone Qatar as the world’s largest LNG producer by the end of the next decade. The Australian government’s current goal is the production of 60 million tons of LNG per year for export. The Australian government is looking to achieve their goal largely through the Gorgon LNG Project. In Greek mythology, a gorgon is a hideous monster, but this Gorgon is a ‘monster’ of liquefied natural gas project in Western Australia.

Gorgon’s network of fields is believed to hold as much as 50,000 billion cubic feet of gas and the 40-year project is expected to produce 15 million tons a year, which is equal to 8 percent of current global capacity.

The Gorgon project has already attracted ready and eager buyers for the LNG that will be produced. PetroChina, China’s largest energy company, agreed to buy $41 billion worth of Gorgon LNG over a 20 year time period.

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LNG Makes It A Really G’Day, Mate

by Tony Daltorio, Investment U Research

They don’t call Australia the lucky country for nothing.

It must be luck to have such abundant amounts of energy, metals, minerals and agricultural commodities, not to mention residing so close to China and India, two countries with large populations and a seemingly insatiable appetite for such natural resources.

And that luck shows again in the recently approved, multi-billion dollar, Gorgon liquefied natural gas (LNG) project, which is spreading good fortune to the foreign companies involved in the venture and the investors who know that Australia is where it’s at…

Australia currently has the 14th largest known gas reserve in the world, and many expect it to make the world’s top ten list in that category sooner than later. Dr. Graeme Behtune, the director of research firm Energy Quest, estimates the

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German unemployment falls!  RBA disappoints the markets…  China to buy Canadian company…  ISM to print positive? And Now… Today’s Pfennig! Good day… And a Terrific Tuesday to you! And Welcome to September! Well… Here’s a thought to get our engines started this morning… Bill Bonner of the Daily Reckoning ( www.dailyreckoning.com )had this to add to my ranting about our National Debt going to over $20 Trillion in the next 10 years, due to deficit spending…

“The Obama administration, for example, expects to run $9 trillion in deficits over the next 10 years – and that number is based on a recovery! Imagine what will happen if the economy doesn’t recover?”

Now, that’s a nice comforting thought to start our day right? NOT! WAKE UP! Morning has broken, and the coffee is on… If you are still of the thought that this is all going to end up seashells and

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Earlier today, CNOOC Ltd. (CEO) reported results for the six months ended June 30. Net income for the period was 12.4 billion yuan ($1.82 billion), down 55% from 27.54 billion yuan ($3.9 billion) a year earlier. The steep fall in net income was primarily due to significantly lower oil prices despite excellent production performance.   The average realized oil and gas prices for the period were $49.35 per barrel and $3.90 per thousand cubic feet, respectively.   During the first half, the company’s crude oil and natural gas production reached 87.3 million barrels and 106.3 billion cubic feet, respectively. Total net oil and gas production reached 105.8 million barrels-of-oil-equivalent (BOE), up 15.2% year over year. Net oil and gas production from overseas reached 15.0 million BOE, up 38.9% year over year.   CEO’s overseas production was boosted by successful start up of Akpo oilfield and Phase I of OML130

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PetroChina Company Ltd. (PTR) has discovered solid gas flow at an onshore well in the east Sulige gas field, China. Daily output from this well is 610,000 cubic meters.

Discovered in 2000, the Sulige field has a projected 534 billion cubic meters of natural gas. It is located in the Inner Mongolia Autonomous Region, one of the most resource-rich areas in China, which produced 3.75 billion cubic meters of natural gas in 2008.

China National Petroleum Corporation, the parent of PetroChina, had received a grant from the Government to start building a natural gas plant in Inner Mongolia in 2009, which will process the production from this field. The new plant is expected to be online by the end of 2010. The new gas plant will be the fourth one at the Sulige natural gas field in Inner Mongolia's Ordos basin.

Using its own technology, and in partnership with foreign companies

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Recent deals such as this one seem to paint a clear picture: China isnt as trapped into USD as the financial talking heads would like you to believe. A China that is not trapped into the USD is very bearish for the dollar. Why? I have heard many who simply refuse to accept the truth, that China has been loaning the US Government (by buying US paper) over $18 billion a day just to keep the lights on. When China refuses to buy US paper, then the Federal Reserve has to step to the plate and do so (by buying through their pet banks, JP Morgan and Government Sachs etc…or is it the Fed is the pet of the banks?) The problem with this is that any government that buys its own debt because ...

Following three West-East natural gas pipelines, China is contemplating the fourth one. The proposal is for a four-lane gas pipeline, which is likely to transport natural gas from the Sichuan and Tarim basins in the West to the large potential markets in East China. The first West-East pipeline was completed and commenced its commercial run in 2004; the second is under construction and expected to be completed by 2011; and the third is already proposed but not yet approved by China's National Development and Reform Commission.

The fourth pipeline is a forward step towards the Chinese Government's efforts to promote natural gas as a substitute for coal in power generation. At present, two-thirds of China's electricity generation comes from coal-fired power plant sources that generate tremendous amounts of greenhouse gases and lead to air pollution. To solve this problem, China is planning to increase its natural gas usage from

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In the energy market on Monday, crude for July delivery continued its relentless climb, closing at $68.58/barrel, up $2.27. July reformulated gasoline rose 2.9 cents, to $1.9243/gallon.

Crude was up for a sixth straight session, and now sits at its highest level in seven months. Yesterday’s rally came on top of a 30% rise during May, the biggest monthly gain in a decade, as the weaker U.S. dollar and hopes for an economic recovery have bred a gang of optimists.

Many analysts, however, have become increasingly concerned that oil’s recent upswing is overdone.

“What all these surging markets have in common is that their advances are occurring in spite of uninspiring fundamentals,” wrote Edward Meir, of MF Global.

“It seems that for the moment participants are not interested in the bearish dynamics of the market, and instead are pushing values higher on solid technicals and bullish exogenous variables, such as the weaker dollar,

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When it comes to a real energy revolution, you might be in for a surprise because the biggest energy revolution in the world may not involve prairies full of solar panels and windmills, or futuristic high-tech cars that run on hydrogen or sophisticated battery arrays. It may not even be in the United States. It’s beginning to look like the biggest energy revolution, in terms of sheer size, may be the conversion of China, and other Asian countries, to natural gas (NG).

What’s so revolutionary about natural gas? Isn’t it a fossil fuel? And why Asia?

It’s not that natural gas is revolutionary. The modern natural gas industry has been around since the 19th century, and NG is indeed a card-carrying fossil fuel. But natural gas has a unique mix of qualities that appear to be winning the energy battle in some of the most

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viastockadvisors

We sense a turn for the better coming in the oil sector,” says Peter Way who tracks ‘big money’ investors for his Block Trader Oil & Gas Report. Here’s his look at the “big block” traders.

Track his picks at:

http://trackthepros.com/stocks/category/1859

“When we use the hedging analysis employed in our stock price forecasts, there are significant differences between some adjacent futures expirations. Here’s the current picture:

“Front month (November) hedging suggests likely near-term higher prices. But the December contracts are likely to continue the past 3-month price decline – briefly.

“After that we could see crude rise over a few months into the $115-125 area or even higher, providing a bullish backdrop for most energy stocks. We sense a turn for the better coming in this sector.

“Several issues are selling at attractive prices now. Among major integrated producers, the standout prospect among the big oils is

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