- Gazprom notes that it has a resource base of more than 190B BOE v Exxon's 72B BOE.
- Exxon's resources are valued at about $5.40/BOE v $1.50/BOE for Gazprom.
- The article notes that Gazprom trades at a lower valuation than other large oil companies because of its Russian origin, poor cost control ability and high CAPEX levels.
- The article also notes that Gazprom's reserves are an option on future development.
- Another concern about Gazprom is the fact that it subsidizes the Russian economy by selling two-thirds of its gas output at less than a quarter of the export price.
- The article adds that Russia's issue with Georgia may force European governments to eventually do something concrete to lower their dependence on Russian energy.
- With respect to Heineken, the article notes that the company's trading outlook suggests that even the beer market may be impacted by the economic slowdown.
- The article notes that options for large acquisitions in the beer industry are becoming limited and this may lead to more cost saving jvs between companies.
- The WSJ speculates that if Heineken entered into a jv for its Central and Eastern European operations with SABMiller's it might see costs cut by €490M.
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