Economics
Gas `Spaghetti' Past Prompts Australian Cost-Cutting
- Chevron, Woodside eye shared pipeline to develop gas fields
- Shell says lack of collaboration eroded shareholder value
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The energy industry in Australia, looking back on an era of waste and profligacy, is now preaching the gospel of thrift and collaboration as it tries to attract more investment in an age of fiscal discipline.
Firms like Royal Dutch Shell Plc are bemoaning the erosion of shareholder value from the go-it-alone mentality during the $200 billion splurge on Australian LNG projects over the past decade. Rivals Chevron Corp. and Woodside Petroleum Ltd. have proposed a massive offshore pipeline in Western Australia, which could be shared by several companies.