Malcolm Bucholtz B.Sc, MBA Analyst

Feeding the Hungry Chinese Dragon

The writing is on the wall. China National Oil Company (CNOC), Exxon, Merrill Lynch and Interoil are all scrambling to secure one of the few remaining untapped oil and gas regions in the world.

And with $30 billion already slated for investment, you can bet we’ve reached the tipping point for the 50 TCF of natural gas these energy giants once wrote off as completely useless.

Papua New Guinea (PNG), with its largely tribal society, dense rain forests, and rugged mountain terrain, tucked away just north of the booming resource production of Southeast Asia and Australia, seemed absolutely worthless. With nearly 50 TCF of land-locked gas ready for production, gas resources cast off as “uneconomical,” are set to become wildly profitable and the making of billions of dollars will begin.