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Wilbur Ross Joining Hands with China on Natural Gas
Posted by: Dheeraj Grover (IP Logged)
Date: September 27, 2012 11:23AM
Well-known Guru Wilbur Ross of WL Ross & Co was on CNBC to discuss natural gas and said he is looking for a stake in China's share in a JV with EXCO Resources (XCO). Wilbur Ross has a 14% stake in Exco Resources.
-- Ross is participating in first auction for the natural gas blocks through EXCO with a JV partner in Chinese.
-- Investing in China shale gas is like investing in Wild West. It is still the early days. China has a lot of reserves but has only drilled about 63 wells so far. They have a long way to go, but there is lot of potential.
-- China's economy is slowing but still has 6% growth expected which is much better than a lot of western nations.
-- It is a lot harder to drill in the kind of reserve and geography China has than the U.S. It will be costly to drill, but low labor cost will compensate for that.
-- Main issue with drilling in China is water, as fracking uses a lot of water, but overall drilling will still be much cheaper in China than the U.S.
Credit and source: www.cnbc.com, CNBC
Here is the video:
Guru Discussed: Wilbur Ross: Current Portfolio, Stock Picks
Stocks Discussed: XCO,