What happened in financial markets yesterday? The market drifted slightly down. But BHP (ASX:BHP) and Rio (ASX:RIO) both fought the tape and closed higher. BHP, showing its versatility, announced plans to develop an oil field offshore in the North-West Shelf.
Did you know that BHP is also the second-largest producer of gold mined in Australia? Can you guess who’s first?
While we’re on the subject of exploration, just how much exploration is there still to do in Australia, both onshore and off? On the energy front, Australia risks becoming a net importer of refined fuels if current refinery capacity remains unchanged and transportation fuels trends progress. There is probably a lot more oil and gas offshore. It’s just expensive to find.
And one more note about BHP. Did you know BHP’s American listing has outperformed the Australian listing over the last year? It’s a completely useless point, as Australians who bought the US share would lose more on the foreign exchange adjustment than they’d make buying the US share. But it does show that BHP remains the premium Australian stock in the US.
The Daily Reckoning Australia