Ann: Santos rejects Harbour proposal and terminates discussions, page-74

Sto have a lot growth prospects in the pipeline. Energy prices are increasing due to structural shift from coal to gas in China in particular. Underinvestment in energy discovery and development, expanding middle class will set up sustained high oil prices and not to mention geopolitical risk. The only thing that has prevented a price explosion has been significantly improved energy efficency in transport which has some way to go. That been said you cant sell a sedan or hatch in the states now with SUVs dominanting. Basically economic expansion and movement of millions if not billions into the middle class will soon outstrip our capacity to produce energy from any means. Simply moving from predominantly vegetarian diet to a meat rich diet has massive implications in terms of energy consumption. The only thing that will cap energy prices is an economic recession which will likely be the consequence of expensive energy prices. In summary hydrocarbon energy production is here to stay and santos has a bright future.