Denintex posted this in Yahoo today
Too much LNG many say, so IOC will never get its LNG plant. This is the way American shorts may think, but not China nor India, for they have the largest and fastest growing world-wide populations. They remain dependent on having a strong manufacturing and commerical base that will keep that population healthy, employed and innovative for decades to come. They know what it means to be overly- dependent on coal, to have skies so filthy the sun is blotted out much of the year. They worry far less about having too much energy supply in thirty years than on having too little. They know from historical experience how quickly national security threat can occur from too much energy demand, too little energy supply; too much reliance on Mideastern suppliers; too many Irans; too much jihad; too much trust in Russia.
Americans live in a bubble: too much winter supply, we are in a glut say our traders. China thinks thirty years; the US, this winter. USA energy pricing is fashioned by knee jerk reactions of commodity traders to a weekly eia report. China finds such thinking downright stupid. So while short-minded Americans focus on the harm of too much LNG, China focuses on the mega-harm of too little, for who can really predict next month, next week, much less 10-30 years.
And if China wants to view the world as having too much energy supply, it has the common sense to know what and where to cut --not on investment in the most cost-productive, prodigious ng producing wells in the world, but on the 10,000 dirty drilling shale wells that cumulatively cannot produce what an IOC well can produce in a single day, not on the cost of finding such gas flow from that single vertical, 60-day drilling IOC well, but on the cost of matching that production from 10,000 Australian wells.
That all of this escapes the understanding of many should not be surprising, for Americans are not trained to think with foresight and common sense. Long-term makes an American investor edgy, so long-term is not a good short-term investment. But it is not the American way of thinking that is going to make IOC the blockbuster that it is about to become, but the "China" way of investing, for it is China/India/Japan and their long-range thinking that will be plowing billions into the IOC coffer, shooting our share price to the moon, leaving Americans to look, to gape with wonder. I have said before that shorts think they are shorting IOC when in fact they are shorting China. In days ahead, this fact will come to the attention of short-minded american investors who will get a real taste of what an ounce of common sense, and a ton of Asian Pacific dollars, can mean to a person's portfolio.