From the presentation yesterday the largest point for concern was the supply /demand graph oversupply of gas for the 5 years before 2023 coming from expected projects to come on line. Will they all get completed and come on line producing nameplate volume ? If they do apart from our longer term contracts that are also priced against spot there may be demand for extra production. It also matters if there is boats / pipelines to transport it. Even with possibility of increasing oil price this may dampen the cash being thrown off but being such a low cost quartile producer ( total costs $24.50 boe) it will hurt other producers more. Key to the next 15 years is to keep track of infrastructure being built specifically for gas usage in power generation and industry as when if/ it slows due to other technology solar, storage enviro rules etc etc
Well that was the one page that stood out to me and we can only hope that investment in alaska throws off lots of cash during that period if the gas market pricing falls against oil.
OSH Price at posting:
$7.42 Sentiment: None Disclosure: Held
