Re: Global Gas...A decage ot Two Halves/ Stpioc
Learned quite a bit reading the Morgan Stanley report.
No doubt about the current LNG glut but if users want additional supply in 2015 - 2017, capital needs to be directed towards building more supply now. FID's need to be approved now to met the projected demand. The events in Japan will pull the timelines forward.
IOC has a very low cost resource and will monetize it. What I don't understand is why the CBM guys even bother with LNG. The report certainly does a good job of explaining the current situation and by reading between the lines, why IOC hasn't moved as fast as many want.
I'm in fact a little more bullish on IOC after reading the report as it explains issues I wasn't understanding about current events.
Those who think IOC is going to double this year are in for a disappointment but those willing to invest longer term as the story plays out will be greatly rewarded. My plan is to continue writing a wide strangle and collect the premiums while holding a position with the common.
Great report and education.