Miners cutting back on exploration, says economist
Veteran minerals economist Richard Schodde says miners both big and small are cutting back on their exploration activity to save cash, a trend that could have long-term implications for the country, according to the Australian Financial Review.
The Australian Bureau of Statistics says investment in mineral exploration has fallen to its lowest level in eight years. Schodde, managing director of MinEx Consulting, believes it is going to get worse.
Origin Energy says it will escape oil pain
Origin Energy chief executive Grant King says dividends to shareholders and capital spending plans will escape an impact from the oil price slump, thanks to the company's limited exposure to the commodity, according to the Sydney Morning Herald.
King also insisted the economics of Origin's $24.7 billion Australia Pacific LNG project in Queensland would remain profitable even after the sharp drop in prices.
Total blames costs for GLNG gas shortage
The Asia-Pacific head of French oil major Total has blamed Australia’s high-cost environment for the gas shortage plaguing its $US18.5 billion ($22 billion) Gladstone LNG project with Santos in Queensland, forcing a change in contracting strategy and expanded efforts to access gas from third parties such as Arrow Energy, according to the Australian Financial Review.
Jean-Marie Guillermou said unexpectedly high costs for the upstream development of coal-seam gas fields in Queensland had cut the volume of gas reserves for the project because they could not be economically developed.