Cheniere Energy CEO Breaks The Myth That Drop In Oil Price Leads To Drop In LNG Production

Cheniere Energy, Inc. LNG is having a decent run in the markets today, the stock is up more than 4.68% on news that the company has raised $11.5 billion in debt for LNG export facility. It has also been one of the best performing stock from the oil and natural gas sector this year, returning over 55% year to date.

Cheniere Energy Co-Founder and CEO, Charif Souki, was recently on CNBC to discuss the decline in oil prices and its impact on the energy industry overall.

How Lower Is Oil Going To Go?

“It’s hard to tell, I think, at this point we are probably past the inflection point, but we are going to keep looking for the level at which people really actually stop producing and as of last week the rig count had not dropped. So, I don’t see any sign at the moment that we have reached that point here,” Souki said.

Does Drop In Crude Oil Leads To A Drop In LNG Production?

“We are mostly about cheap natural gas. Oil has some impact because it’s an alternative commodity on a global markets and it’s an alternative method of pricing, but even at these levels, oil priced natural gas on a global basis is only marginally cheaper than natural gas. This is a moment in time, if you take it over a 20 year period where all these utilities make the commitments, it’s a very long-term and 90% of the time you are going to be better of buying cheap natural gas.”