RE: risks/sanctions4 Mar 2014 10:49
So, if we impose sanctions, then where do we get our gas from? Germany has the largest reserves, sitting at about two months supply. It's not practical to import LPG from the 'States, and the North Sea is unable to ramp up capacity to fill our needs (our as in the entirety of Western Europe). Maybe we could come to an agreement with Iraq / Kurdistan to start shipping oil through Turkey, but that wouldn't remotely start to address the electricity generation question. Load of bluff and bluster from the West who probably triggered this be encouraging Ukraine to tighter western ties and even to look at joining NATO in the future. Maybe Crimea will be sacrificed, but it is essentially Russian anyway (less than half a century since it was gifted to the Ukraine if my tired old memory is anything like accurate), but then it will fade away again. In the meantime, RPO is still f&*ked as we can't seem to sustain any kind of production, Slumberger or not.
Having said that, our natural level is around 40p, so plenty of upside still sitting here if you have the cahoonas!
GLA
Happy