“In our minds, the Sinopec deal reflects the appetite and lower cost of capital of eager Chinese buyers,” said a report from energy analyst Greg Pardy at RBC Dominion Securities.Chinese purchasers seem to think that light sweet crude prices are headed up. Think of the impacts high oil prices will have on our unsustainable way of life.
After running the numbers, with an 8.5 per cent tax discount rate, Mr. Pardy concluded the $4.65-billion price tag on this deal imples a long-term oil price of $95 a barrel.
At Peters & Co., analyst Jeff Martin used a 10 per cent tax discount rate for his projections, and concluded the Sinopec purchase is based on a $106-a-barrel expectation on oil.
Tuesday, April 13, 2010
Peak Oil
http://www.theglobeandmail.com/globe-investor/markets/streetwise/where-china-sees-oil-prices/article1532555/
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