Why Exxon Mobil Corporation (XOM)’s Gigantic Move Is a Smart One

North America and East Africa are developing LNG export facilities to serve the Asian markets, and a strengthening Austrian Dollar is leading to increased project costs. Chevron Corporation (NYSE:CVX)’s Gordon LNG project’s cost increased 20% to $54.4 billion. This is where FLNG enjoys an added advantage with no land acquisition cost, and the vessel can be built in a country with lower labor cost.

Foolish bottom line

The Australian offshore gas fields were for long known as orphaned gas, but with the introduction of technologies like used in FLNG, these vast reserves of 14 trillion cubic feet of gas can be extracted and commercialized.

With the success of such innovations in the oil and natural gas industry, at least oil will be able to nullify its biggest challenge — to extend its field life. Let’s wait and watch, and keep a close eye on the performance of Exxon Mobil Corporation (NYSE:XOM) in Australia.

Satarupa Bose has no position in any stocks mentioned. The Motley Fool recommends Chevron.