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Dheeraj Grover
Dheeraj Grover
Articles (493) 

Wilbur Ross Joining Hands with China on Natural Gas

September 27, 2012 | About:

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:

About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

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