Gas is the new oil.
Liquefied natural gas represents seven of the eight biggest planned resource projects and production is forecast to quadruple over the next decade.
Yet energy stocks are flagging, while their project contractors have been among the market’s best performers in the past six months.
The increasingly acrimonious public debate about the environmental impact of drilling for coal seam, shale and even conventional gas comes as the market is increasingly wary of cost overruns and delays for major LNG projects.
These are ‘‘much more capital intensive than the Pilbara’’, says Kate Howitt, portfolio manager for Australian equities at Fidelity. And revenue flows can be some years off.
At least ‘‘the surge in oil prices is great for energy stocks’’, says the head of investment strategy and chief economist at AMP Capital Investors, Shane Oliver.
AFR
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