70$ Oil For a Very Long Time

[Putncalls]

That works well for IOC I would think.

I guess the market has decided that LNG is to expensive compared to diesel?

[Getitrt2]

In answer to your question, NO, I don't think so.

[jft310]

At $50 oil then LNG is $10 per mmbtu . The Total build by analyst shows $7-8 all in cost . So Interoil's project with Total makes money at these prices for WTI but understand Brent is the bar not WTI.
With an Exxon train 3 with an OSH win at arbitration that's possible for IOC gas to go Exxon the costs are in the $5 range or it's highly profitable at these prices .
Not a bad place to be right now .

[Putncalls]

A bit optimistic on the numbers.
A 6 multiplier makes more sense than 5.
If somebody doesn't notice that the current PPS has 0 value for LNG production?
I still think that the US will set world oil price for a long time.
WTI will be 5-7 dollars less than Brent but the US controls the ceiling.
The beauty of that is that US oil resource and production numbers are there for all to see.

[sageo]

In answer to your question, NO, I don't think so.

 Getit - Forgive me for going off topic for a few minites. Thanks ! Do you believe that when the Xom lawyers and the Osh lawyers talk about the arbitration results coming out in March,that there is any further interest  (or mention) in any kind of a second Lng plant being built ? Yes,I understand that the PNG gov't wants it, but would the other two really like that to be the case .  Just wondering.