WE'RE SAVED !!

WE'RE SAVED !!

(Part of Daily Telegraph article of 11th October 2009)

America is not going to bleed its wealth importing fuel. Russia's grip on Europe's gas will weaken. Improvident Britain may avoid paralysing blackouts by mid-decade after all.

The World Gas Conference in Buenos Aires last week was one of those events that shatter assumptions. Advances in technology for extracting gas from shale and methane beds have quickened dramatically, altering the global balance of energy faster than almost anybody expected.

Tony Hayward, BP's chief executive, said proven natural gas reserves around the world have risen to 1.2 trillion barrels of oil equivalent, enough for 60 years' supply – and rising fast.

"There has been a revolution in the gas fields of North America. Reserve estimates are rising sharply as technology unlocks unconventional resources," he said.

This is almost unknown to the public, despite the efforts of Nick Grealy at "No Hot Air" who has been arguing for some time that Britain's shale reserves could replace declining North Sea output.

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/6299291/Energy-crisis-is-postponed-as-new-gas-rescues-the-world.html

ON THE OTHER HAND - as quoted in a Daily Telegraph article of 8th October -

http://www.telegraph.co.uk/finance/personalfinance/investing/6273121/Neil-Woodford-Why-I-have-sold-my-entire-stakes-in-BP-and-Shell.html

Neil Woodford, the star fund manager, believes BP and Royal Dutch Shell may be forced to cut their dividends next year and has sold all his stake in the companies.