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Breakingviews: The floating island index

Friday, Apr 05, 2013 - 03:20

April 5 - As with record-breaking skyscrapers and economic downturns, could Exxon Mobil's plans for a $24 bln, 0.5 km long floating liquefied natural gas facility herald a gas glut?

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That often seems to be the case that when people build giant buildings it's right when the economy is peaking and you get it. Recession up to that the skyscraper next dispersants from. Buckley is hit. Holds just that shows you that I didn't even back within a state building an -- and that he's coincided with the beginning of the Great Depression. We're wondering Chris the same thing can be said giant floating islands what's going on. What I think it could affect competition between the oil companies to see you can build the biggest floating object in the world. An amendment -- Lexus I knew that Chad has gotten -- -- to build one of these. Giant objects it's actually really difficult to conceive of how big buy out but what do they do they're actually able to liquefied national natural gas terminal so exactly they basically processing that the natural gas than chipping out because everybody analyses. That the world is gonna consume more and more this gas you have to exit of Richard's point so having those things in the 1929 I think the Empire State Building was built. You know we had a great depression and stock market crash a look at stuff fog. You know what there there was the exuberance. Over -- asset prices generally. That it that got in the minds of the builders and as was 1974. At the world trade. But the world trade now the SAS how Sears Tower -- you have the Petronas Towers in Malaysia right on the left and right -- -- if incredulous that. So it is this is sort of case where people have gotten exuberant overly exuberant about. Gas prices and a baking in this idea that they demand it's going to be great price are going to be strong and they're building these great -- islands NC. What exactly -- the time that Exxon has conceived would cost about twenty fold billions though you live at this yes -- this is something that would be the length of five festival that feels. And then it would be is not the tallest thing that -- wider the longer the competitiveness tower is all errors and my contention -- and that's exactly did the analogy is a very good bond between the skyscraper -- against. And then eighteen in a very very bright future for natural gas and if you if you look at the environments at the moment and it LNG capacity. Under construction is about a that's the title. Was a huge amounts apply massive amounts of supply and I got to you by the RO the return -- And of course the other danger is that it while spent building you can probably take five or six years to build. Under an optimistic scenario. China could well start to develop exciting shale gas and -- -- so you have much more counselors and. -- the Empire State Building is now it didn't return it was a money loser for yet decades. But in the end of course is still one of our great buildings here in Manhattan and it's well you can you can -- I think about it in Brooklyn fundamentalists -- eventually you know gets filled but -- -- in -- -- and it becomes useful I guess the question is that what you do. We didn't just again like he's 220 miles or something off the northwestern coast of Australia we have like. There's lot of sharks a lot of water unlike -- what a great terrorist attractions and unfortunately. You -- in the fifth and I think that you can set with a lot of some wrinkles -- All right we will leave it that will be looking at this voting polls to vote in the coming years we will have more breaking news next week.

Breakingviews: The floating island index

Friday, Apr 05, 2013 - 03:20

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