more demand less supply! price up!

True, when I talk about my misadventures in studying economics at university it was in another century, but one sentence in my rarely used textbook still resonates.

It's this:

When DEMAND rises and SUPPLY remains constant (or falls), the PRICE will rise to accommodate the stronger demand.

Is this not happening in gasland?

For starters, yesterday there is increased demand from the government of 2000MW of gas to replace dirty coal electricity.

That's 1300PJ over 20 years just sucked out of the Australian PJ supply pool.

WOW!

The GLNG's of the world have just seen their pool of resource required to accommodate second and third train requirements diminish and this is just the start.

Back to boring old Mr Price my economics lecturer (he's long gone to economics heaven).

When DEMAND rises and SUPPLY falls, the PRICE will RISE!

ESG is worth more today than it was on Friday. Suddenly the big gas boys out of Gladstone have another major competitor wanting to buy our gas.

This isn't good news for "Mr VWAP + 40%". He deserves a wedgie at lunchtime for peddling tripe and trying to weedle us out of our long awaited payday!

FOR SALE: One hardly used 1970 economics textbook...going cheap (unless I get multiple offers).

I never did finish economics...I switched to accounting/commerce following a personality by-pass!

Sentiment moved from HOLD to BUY