01-15-2015, 02:55 AM
["I know negative speculation is frowned upon, but since you asked a direct question, I'll answer. If there is an explainable reason at all, I would think it's less likely that it is "well-related" or "arbitration-related"...and more likely that someone thinks Total might "table" the plans for a new plant until oil prices rebound."]
No problem with that as I actually mentioned it myself already, but it doesn't seem probable to me. LNG demand is still there and a lot of more expensive projects face more urgent questions about their economic viability.
What is true is that the project could be less profitable if the energy price slump continues, but it has to continue for a really long term in order to achieve that effect.
However, market perceptions could simply be: low energy prices lead to more uncertainty over projects viability, hence sell-off.
No problem with that as I actually mentioned it myself already, but it doesn't seem probable to me. LNG demand is still there and a lot of more expensive projects face more urgent questions about their economic viability.
What is true is that the project could be less profitable if the energy price slump continues, but it has to continue for a really long term in order to achieve that effect.
However, market perceptions could simply be: low energy prices lead to more uncertainty over projects viability, hence sell-off.