Well, that is the conundrum. Cap the price and some wells/developments will not be viable. Add to that an added sovereign risk component, because who would want to invest in an increased risk environment where a government can set a gas price. Neither of these will entice companies to drill or develop in the next one or two years, which ultimately will mean less gas for the domestic market, irrespective of capped price. It will be interesting to see for instance what Santos will now do with their Narrabri (NSW) development. Not to worried for our Queensland project, assuming the cap is for a year, say maybe two, it takes about that time to drill the well, later next year, complete and hookup the year after, the world might be a different place by then.
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Well, that is the conundrum. Cap the price and some...
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