Buy?, page-3

I think
a discount to the share price will remain in place so long politics is in play and it is only getting worse with the LNG ban from smaller importers today

but on an economic front; China cannot afford to place tariffs on LNG. What they have done to coal have already driven up prices to elevated level. I think Morrison knows this.

my main concern is if this becomes a permanent shift of demand to other countries. If we take a medium view, it will only accelerate purchase of non-Australian production.

remember LNG is not a commodity like copper. It is in abundance and usually driven not by the cost of production, but the shipping cost, which is relatively cheaper due our distance with China.

near term, Woodside will benefit from higher oil and spot prices:

Right now, there’s two saving grace, all time high sea freight rates and lack of surplus supply out of Qatar, that about to change in 5 years. I won’t be around for that day, but in the near term, these headwinds will have a material impact on investment decisions.

I can only hope it doesn’t escalate, but should it go that way, one would need to evaluate the unknown risk of politics in this investment

I’ve learnt, know what you didn’t know is as important as thinking you know it all