will this story play into BUL's hand?, page-6

Just been reading the news about Chesapeake. Some for...most against. This is down the dunny. You can't make a business run when the product costs $6 and you are selling it at $2-3 . They developed this shale gas at $13. Since then they have closed down most rigs and moved them over to oil.....now those are being laid off.  You can bring down costs and  borrow and hope. But the gap is too wide. Exports of gas from USA are a ponzi. Okay at the moment when you can buy for $2-3 and sell in Tokyo at $7..........but when the real cost of shale gas gets acknowledged at $6  ( see Arthur Berman ) then is just becomes a ponzi. And Shale  Oil  will follow the same path and will be another ponzi.

Oil is lower for a lot longer. Hunker down. BUL   have gas to sell.  Oil and gas will go higher. You cannot defer capex  for this long. This is the longest period ever. In a few years we will be looking for 4 mbpd through lack of investment, 4 mbpd that is now negative cash flow  ( shale ) and 4 mbpd natural oil field decline. And with world growth forecast to be 1.4 mbpd  per annum then that's in total 13.4 mbpd.

So just relax.

Same applies to all Aussie O&G stocks. Just hunker down.........