I dont know what the actual price is but as a fuel it commands a premium. This is a very good little earner for NZOG.
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excerpt from CNN article about upcoming intelligence briefings for Obama:
A team of intelligence briefers has been named and is ready to discuss with Obama the Presidential Daily Brief, similar to the one provided to President Bush, says a message to CIA employees obtained by CNN.
According to McConnell's outlook, economic and population growth will strain resources. "Demand is projected to outstrip the easily available supplies over the next decade," he said at the annual conference.
The intelligence community's forecast indicates oil and gas supplies will continue to dwindle and production will be concentrated in unstable areas, he said. And there appears to be no relief at hand.
McConnell said studies have shown that new energy technologies -- such as biofuels, clean coal and hydrogen -- generally take 25 years to become commercially viable and widespread.
IEA predicts oil price to rebound to $100
Published: November 5 2008 19:01
Oil prices will rebound to more than $100 a barrel as soon as the world economy recovers, and will exceed $200 by 2030, the International Energy Agency will say in its flagship report to be published next week.
“While market imbalances could temporarily cause prices to fall back, it is becoming increasingly apparent that the era of cheap oil is over,” the report states.
The developed world’s energy watchdog has doubled its long-term price expectation from last year’s $108 a barrel for 2030 and assumes oil prices will rebound from today’s $60-$70 a barrel to trade, in real terms adjusted by inflation, at an average of more than $100 a barrel from 2008 to 2015.
The IEA’s World Energy Outlook has come to this conclusion largely because it believes companies will struggle to pump enough new oil to offset the steep production declines of the world’s older fields.
“Current global trends in energy supply and consumption are patently unsustainable,” the report states.
I'll add something to that...Quote:
fish-Am I correct in saying
1) Royalties are only 5% on this project
2) Production costs are minimal
3)Nzo should net at least 15million a year from the lpg alone
4) Reserve upgrades are likely
5) the current market value of NZO suggests that Kupe is given a big phat zero...
:cool:
.^sc
i think kupe may be slightly comming in to play because i got home and expected nzo to have lost yesterdays gains,lower oil price,dow and pikes retreatment but they did fairly well,and the low volume indicated to me that holders arent throwing them away on down days like last month
Quote:
Originally Posted by fish
Am I correct in saying
1) Royalties are only 5% on this project
2) Production costs are minimal
3) Nzo should net at least 15million a year from the lpg alone
4) Reserve upgrades are likely
.................................................. .................................................. ..........
Fish mon,
1) My understanding is that Kupe is subject to 12.5% AVR.
2) Kupe is a pretty big project so I'd be surprised if operating costs were minimal.
3) The market price of LPG has recently plunged from around US$800/tonne over July/Aug to around US$500/tonne currently. I've seen long-term forecasts of between US$600-650/tonne. NZO's share of Kupe LPG is currently 165,000 tonnes spread over about 15 years. So gross annual revenue from the LPG is likely to be closer to NZ$11m pa.
4) Why do you think a reserve upgrade is likely?