Gridder,
Thanks. ....It is something few understand.
The shale wells are producing more gas. A bad sign.
They are depleting strongly.
They are competing with each other....i.e drilling is over lapping..
They are cash negative
And they sell at way below WTI.
It is a ponzi.
The money train will probably last another 2-3 years as production soars and then it will all coming crashing down. And the public investor will probably sit down and watch a film about it.
A bit like Wall St and Bernie Madoff.
I think Australian LNG is going to get a lot of attention. Not only the growth from China due to coal smog problems but also since Trump has put a tariff on USA LNG exports. The market will be looking at Australia.
LNG is going to increase worldwide by 33% with 5 years. This is a huge bonus for Australia .
Senex embarked on a plan to supply the East Coast years ago. And they have learnt by experience. I am well pleased they have completed a workable 'proven' plan rather than take unnecessary risks and go for the whole hog.
Australia has an energy crisis in front of it or otherwise capitulate and stuff up its foreign risk rating. The Aussie Pollies have no idea. You have 30 days reserves in a country almost at the end of the supply train. The rest of the world demands 90 days. Put an engineer in charge of Australia. They know common sense.
The Aussie Govt have been listening to local disc jockeys for too long. Get some economic minded engineers in there. Get drilling. Every success backs out a bit more coal. Get the greenies to understand it.
Thanks Gridder.
SXY Price at posting:
40.5¢ Sentiment: Buy Disclosure: Held
