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Bloomberg: Russia-China gas deals spell big trouble for Canadian LNG


Bilbro Baggins

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This might back off investors initially but there is no way in hell Russia will be able to supply the majority of natural gas to China. I have worked in Russia, the reason why I worked in Russia was because of their lack of technical knowledge in drilling, completions and upstream. They litterally have no nationals with the knowledge to remove this gas from the ground.

The wells in Russia are extremely deep and geologically complex. With the lack of home grown man power they will need expats. To get expats to Russia it cost a lot of money. I personally would not go back without a pile of money. It's a frozen freaken hell hole.

There delivery costs will not balance that Chinese agreement. Russia just signed a death sentence.

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This might back off investors initially but there is no way in hell Russia will be able to supply the majority of natural gas to China. I have worked in Russia, the reason why I worked in Russia was because of their lack of technical knowledge in drilling, completions and upstream. They litterally have no nationals with the knowledge to remove this gas from the ground.

The wells in Russia are extremely deep and geologically complex. With the lack of home grown man power they will need expats. To get expats to Russia it cost a lot of money. I personally would not go back without a pile of money. It's a frozen freaken hell hole.

There delivery costs will not balance that Chinese agreement. Russia just signed a death sentence.

The thing is though that Russia will also be supplying Japan via Vladivostock, they are planning to bring in Australian and Japanese as well as Chinese experts to help build this.

It gets done and with Chinese and cheap Russian labor it gets done fast and cheap

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This might back off investors initially but there is no way in hell Russia will be able to supply the majority of natural gas to China. I have worked in Russia, the reason why I worked in Russia was because of their lack of technical knowledge in drilling, completions and upstream. They litterally have no nationals with the knowledge to remove this gas from the ground.

The wells in Russia are extremely deep and geologically complex. With the lack of home grown man power they will need expats. To get expats to Russia it cost a lot of money. I personally would not go back without a pile of money. It's a frozen freaken hell hole.

There delivery costs will not balance that Chinese agreement. Russia just signed a death sentence.

Guy I work with his buddy is a pipefitter he's training all the guys in Russia over skype

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The thing is though that Russia will also be supplying Japan via Vladivostock, they are planning to bring in Australian and Japanese as well as Chinese experts to help build this.

It gets done and with Chinese and cheap Russian labor it gets done fast and cheap

That makes it even worse, they have plenty of cheap labour that isn't the problem it's the people that organize the cheap labour. It takes a lot of technical knowledge to drill a Russian has well. They are some of the deepest in the world. A geological nightmare with extremely high formation pressures. You can't just wing it, trust me.

I don't think people understand what is involved in getting the gas to these countries. The infrastructure is mind blowing.

They barely got the Olympics together, and this is like 1,000,000,0000,000,000,000 x bigger.

They will need a lot of help from outside of their country which will drive the cost through the roof if they can even manage to lure people over.

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Wish Canada could just be a leader in renewable energy funding and research, and slowly ditch fossil fuels.

Incentive to start a Federal energy program, keep gas/oil prices low/stable for Canadians while funneling large percentage of tax revenues from it towards alternative energy infrastructure...

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The government put too many eggs in one basket. Can't believe Harper and Clark haven't even put any effort into growing the Canadian economy through some sort of "dual-track." Invest in our natural resources, and invest in some RND for other possible resources.

You know, sort of like diversifying your investment portfolio when you're trying to manage your own money? Diversify = less risk. Too bad the government doesn't understand basic financial principles when it comes to trying to grow the economy.

They inherited decades of worth of underachievement and neglect from the Liberals and PCs, as well as that this country does not have what it takes to be competitive in so many industries, too many cultural limitations for one.

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Wind and Tidal turbines are about 120 years behind the oil and gas industries in terms of development. Give it the same amount of investment I'm pretty sure it will pay for itself. Besides Wind and Tidal power have one massive advantage. They don't run out like a well will. BC is benefitting from billions in infrastructure to provide us with cheap(ish) electricity from hydro. No coal plants etc. here.

I'm curious to what Electro Rock means by cultural limitations? Just because our elected leaders don't understand science or engineering, doesn't mean we can't diversify our economy and our sources of energy.

LNG pricing has been flat for over a decade. I know from sources in the BC Oil & Gas Commission they were stating this whole LNG project of Clark's is bogus. Unless we're intending to sell our LNG at a loss. Knowing Clark she's probably is selling us off cheap.

Oil and Gas is going to run out. No amount of posturing is going to change that. It's a fact. The sooner we get into renewables, the better off we'll be. That's why the algae fuel is so intriguing. We can provide a replacement source of oil and other products and it reproduces itself.

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I'm curious to what Electro Rock means by cultural limitations? Just because our elected leaders don't understand science or engineering, doesn't mean we can't diversify our economy and our sources of energy.

I mean that Canadians as a culture just aren't competitive for many reasons in the global economic and technological context.

We could spend a fortune developing high tech industries in this country, and someone else would quickly come along and do it better, ask Blackberry.

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