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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (14924)	6/4/2004 11:11:20 AM
From: Knighty Tin	Respond to of 110194

ild, this is actually a bearish sign for oil projects. If it makes more projects viable, it could increase supply. In 10 years. <G>

To: ild who wrote (14924)	6/4/2004 11:16:11 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

i think it means their current cutoff is $18. so they may raise it from 18 to 22 or whatever. it is natural for this cutoff to be more conservative than, say, whatever a stock analyst estimates oil will average over the next year. if NHK assumes too high a cutoff and makes an investment based on that assumption, they will be stuck with an unprofitable facility. i have read about a lot of projects that are supposedly profitable at, e.g., $25, but don't get greenlighted because the backers are not confident enough of the long-term price. PS. long NHK