06-17-2016, 12:44 AM
On a separate thread JFT posted a link of an analysis from Oxford Energy. https://www.oxfordenergy.org/wpcms/wp-co...NG-106.pdf. One of my takeaways from that study is that, just as we've been told for years now, long term LNG contracts start disappearing quickly after 2020. Even while global LNG usage growth has slowed in the past 5 years it continues to take market share from coal and oil in most markets.
Pavel has authored many opinions on IOC with forecast market prices significantly greater than today's. Maybe Pavel's always been of the herd mentality, but whether he is or not, there is a market for Papua LNG's gas post 2020. Gas is not a renewable resource. Fields decline. Populations, whether they are growing or not, are driven by the improvements in the quality of life afforded by cheap, clean energy. Of all the hydrocarbon driven machines, those energized by natural gas are the cheapest to build and maintain.
The only pushback on NG use I see is the cost of the "last mile" facilities needed to deliver it to the customer. That didn't dissuade US consumers from building a huge network of pipelines, or European users. I doubt it will hold back Asia either.
Pavel has authored many opinions on IOC with forecast market prices significantly greater than today's. Maybe Pavel's always been of the herd mentality, but whether he is or not, there is a market for Papua LNG's gas post 2020. Gas is not a renewable resource. Fields decline. Populations, whether they are growing or not, are driven by the improvements in the quality of life afforded by cheap, clean energy. Of all the hydrocarbon driven machines, those energized by natural gas are the cheapest to build and maintain.
The only pushback on NG use I see is the cost of the "last mile" facilities needed to deliver it to the customer. That didn't dissuade US consumers from building a huge network of pipelines, or European users. I doubt it will hold back Asia either.