09-28-2015, 06:41 PM
'Stavros' pid='63161' dateline='<a href="tel:1443245 Wrote:You're right Putz The typical oil-linked LNG price has been an S-shape curve where the straight-line diagonal portion goes by the formula: $(Japan Crude Cocktail Price) x (0.1485) + $0.50 So at $60 oil, LNG comes to ($60) x (0.1485) + $0.50 = $ 9.41 ===> Not a natural (healthy) price, as you say. There were a lot of gesticulations in the past, of course, by BUYERS who were paying $14+ when Oil was over $90. Now, SELLERS are whining that their sunk investment costs are not being covered. SO ... now there are on-going LNG price negotiations to modify the price-setting formulas with higher floors and lower ceilings to enable all parties to share the risks and benefits equally. AND ... if Oil price stays below $60, we'll see Oil Supply stop growing due to lack of E&P spending in high-cost areas around the world. If we see Shell pull out of Alaska, we'll know they bit the bullet and concluded that Oil price will not rebound this decade.
Well, I don't know if oil prices will recover this decade, or not, but Shell did pull out of Alaska.
"Shell says scraps controversial oil exploration in Alaska
London (AFP) - Anglo-Dutch energy giant Royal Dutch Shell said Monday it had scrapped its controversial offshore exploration in Alaska after failing to find sufficient quantities of oil and gas.
Shell announced that its Burger J well in the Chukchi Sea, off the northwest coast, failed to warrant more exploration, adding that it "will now cease further exploration activity in offshore Alaska for the foreseeable future." "
for our cause