This will sure speed up the investment payoff for Gorgon and Wheatstone.
11 replies (most recent on top)
@XHxZWwC-3zkm, Too funny!!, You can "See" how people look when you are blind.
You cretins are stupider than you look. Australian LNG prices are not spot market. They are long term contracts.
Hey dorks, what @1ail said is true. Go look it up before reacting negatively to facts you don’t like. The initial contracts signed with Japanese power generating firms for LNG delivery prices have no guarantees. It’s a 10 year agreement with no teeth.
Chevron fatality rate in 2018 was 0%. How much lower do you think it should be?
1xyt, That's funny how you spout false information (fatality rate?) and pretend to be gainfully employed somewhere. You never know what kind of creative BS from disgruntled losers that you will get here. I love this site! - keep 'em coming - I'll put on the popcorn and just sit back!
@1gjy, You are correct but don’t know or telling the entire story. It’s true that a long term LNG delivery contracts were signed by Japanese firms, but there were no guarantees. So, in essence when there’s no guarantee, there is really no true commitment. When spot prices for LNG fall below the 10 year contracted price, one shouldn’t be surprised to hear the contract will not be honored. But when that happens, it will affect the company stock price detrimentally, as investors will know to not expect a windfall.
$20 billion overrun seems like quite a butthurt amount for the best company in the country in terms of performance! Though given the fatality rate at CVX and how they remain so proud, I'm guessing the people making fun of those laid off probably manage to equate the amount to an acceptable loss of human life. Such a proud company. I wouldn't know, though - my company doesn't tolerate fatalities.
-1iod: who knows. 25% over on a major cap, is that a lot? Good, bad or ugly we will only know the final economics of these project in lookbacks a few decades from now. There is too many unknowns at play to access today.
Did it account and make up for being 20 billion over original estimate, -1gjy?
Good thing for Chevron a good chunk of the first decade of production was pre-sold at what today are very attractive prices for a seller. Some significant protection from short term price swings were built into the project economics.