If oil were to go into the $30's, what would that mean for Gorgon? Can we still make a profit?
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Based on a wild guess at Gorgon's LNG cash economics: Costs = $2/MM BTU for royalty and gas cash expenses + $7/MM BTU for liquification plant expenses, i.e. $9/MM BTU required FOB to break even. Then $9/MM BTU equates to about $60/BBL crude oil price, so no, at $30/BBL oil Gorgon is hurting.
Gorgon is a 40 - 50 yrs investment can't be judged by a a short term movement either up or down. Remember we already for got oil was in 80s earlier this year.