Good one, Origin!

Wednesday, 12 August 2015

Good one, Origin:

APLNG has an all-in breakeven somewhere around $12mmBtu. That’s Brent at $86. Here are Brent futures for December 2019:

I don’t see $86 for five years and probably never again! It’s cash breakeven is more like $7mmBtu or the equivalent Brent price where it is today. It will, of course, be able to high-grade so that’ll keep it in cash flow positive for a while and a lower dollar will help.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.