RE: RE: RE: Deline curves - seeking alfa Actually BC is the same game . Increased productivity in BC , if you happen to own acreage in a hot play , is countered by higher costs and lower revenue . Hence the need for LNG exports . In less than a year there will most likely be an NDP government in Victoria . They will be after increased royalties and windfall taxes . Not to mention a fracking review . They will have learned from the Stelmach example . Learned how to be sneaky that is . They will soft sell their approach but won't put the hammer down until after big money is committed . And then it will probably be biased towards windfall profit taxes , so the investors get utility like returns for exploration type risks . This is why Apache et al will be waiting until mid 2013 at least for final internal approval . They have to pin down the new government before laying down billions to maintain any bargaining position .
It's naive to use Petronas as any guide to what will happen in BC in the next 18 months . Resource companies routinely blow billions only to get blind sided by new government policies . Their timeline , ans Shells will be after Apache does the hard negociating with the probable NDP government . Adrian Dix could be another Danny Williams for all they know . But they better find out before they lay out a few billion .
I don't know where you get your lower cost information , every dry gas producer I know of in BC is getting creamed , the only way you can keep costs down is not to drill .
regards
G