Japex wants to invest in Elk Antelope

[jft310]

Palm
Agree

[Getitrt2]

They already have lower prices for oil and gas, even if they recover significantly, which is likely, and I see no "going back to coal" but rather further decreases in its use, given the lower oil and gas prices and environmental issues causing increased action in that area.

[Palm]

But they have gone back to coal as well as China and India as economies cool and higher energy kills spending and development elsewhere. They are looking LT and like most expect oil and LNG to go higher in price. Countries are moving to a mix to try and balance cost and the war on CO2. Not easy. And China is working hard at adding pipelines from the west to bring in NG and develop their own shale gas (which is said to be plentiful but tough to bring up economically). Their shale is said to hold vast amounts and they are refining techniques constantly to get it to economic feasibility.

[Getitrt2]

But they have gone back to coal as well as China and India as economies cool and higher energy kills spending and development elsewhere. They are looking LT and like most expect oil and LNG to go higher in price. Countries are moving to a mix to try and balance cost and the war on CO2. Not easy. And China is working hard at adding pipelines from the west to bring in NG and develop their own shale gas (which is said to be plentiful but tough to bring up economically). Their shale is said to hold vast amounts and they are refining techniques constantly to get it to economic feasibility.

This is all extremely complex and ever-changing, and I certainly don't know everything, but I just do not see it the same way.  Energy is NOT "higher", it's lower.  Yes, some price recovery is expected in upcoming years, but not back to where it was.  Goldman Sachs had further comments on that today.  Lower energy prices are actually increasing demand and spending overall, in spite of negative effects in the energy industry, for example in vehicles and other areas.  China and India growth rates have declined, but are still at relatively high rates; and Europe has improved some.  Coal is still a big part of the mix, but is declining overall, not increasing.  China shale gas potential has huge difficulties and is not progressing well.  Deals for new gas pipelines to China "from the west" were motivated by geopolitics, are not economic, and are the responsiblilty of Gazprom, which is now extremely weak and in big trouble.  Even if they get done, it is far in the future.