Ferc, page-19

Woodside don't think FLNG projects are crazy...I think that the oil price fiasco (Cartel conspiracy is a better term IMHO) has a long way (several months at least, maybe a year or more) to go yet. The oil producers are hearing footsteps. They are locking out other forms of energy ala gas to keep the old game going as long as they can. This is the biggest shakeout you will ever see I reckon and the lower highs and lower lows constantly happening with oil prices are not filling me with any near term confidence re LNG. The Texas mob that just pulled out of their FLNG project are case in point. Granted their costs to produce were projected to be 33% higher than LNG's however with oil still dumping value this scenario has a long way till it plays out. If oil drops another tad in the next few months to $45 or so then what? If you were a potential 20 year client for LNG would you sit on the sidelines and wait? Dang bet your bippi you would. So if that proves to be the case we have all the potential buyers for the gas waiting for the lowest entry point and we don't know where that will be as yet...the oil boys are not going to give ground and the stakes are as high as it gets. This is one of the biggest chess games of all time...I am sitting this one out for now and watching and waiting. Something unexpected this way comes IMHO and even though it may not feel like it I think it is early days...couple that with the stakes they are all playing for and we have all the ingredients for a game changing humungous what is going to happen next series of events. The biggest shakeout of all time or just a blip? With the oil price down 50% from the norms and the old low around $30 during GFC they are playing to win. Oil and gas wars...who would have thought of this? Then again what would I know...just my humble instincts folks.