The Rising Influence of Rising Affluence

[DewDiligence]

CVX estimates Gorgon LNG’s cumulative development cost will be A$52B instead of A$37B:

http://finance.yahoo.com/news/chevron-announces-36-7-billion-213000818.html

CVX made this disclosure as part of the announcement of its 2013 cap-ex budget of $36.7B, of which 90% is for upstream projects.

The share price is up about 2% since the Wednesday evening PR because investors and analysts knew the old Gorgon cost estimate was unrealistic and feared the real figure might be even higher than $52B. Among the reasons for the ballooning project cost are the labor shortage in Australia and the strength of the Australian dollar.

The project is now 55% complete.