Beetaloo or bust: the route to commercial success for an Australian shale play, page-61

Sam Berridge of Perennial is in agreement on supply crisis and need for gov push - Beetaloo or Bust.

”Aluminium was the standout of the base metal spectrum in themonth, rising 5.2% to $1.21/lb. The US natural gas move was also ofnote bouncing 53.2% from severely depressed levels. The reasons behind the move in US gas prices include producers electing to shut-in production to preserve resources for higher price levels, and growing optimism regarding the outlook for US power demand,driven by AI growth and datacenter rollout. The Trust benefitted from exposures to both these commodities.

We attended the Australian Energy Producers conference in May.The consistent message we received was the appetite for large-scale investment in Australia is severely depressed and is unlikely to change until regulation becomes more supportive, both at the state and federal level. Later in the month, gas prices hit $18/GJ in Victoria as supply continues to roll off and the temperature drops. This scenario has positive implications for the value of incumbent assets.”

May 2024 report