More on Santos’ crazy celebration

Friday 25 September 2015

From the AFR:

“Oil prices go up and oil prices go down but we’re clearly in a dip right now. The oil price has fallen, it’s halved, so of course, the LNG price has fallen as a response to that,” Mr Knox told Fairfax Media. “Currently, the prices are lower than they were 12 months ago but at the end of the day, GLNG makes cash with oil at $US40 a barrel and an 80¢ exchange rate. These are cash flow positive projects in a pretty low oil price environment.”

Cash flow positive, sure. But there are three caveats:

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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.