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Downside for Natural Gas
Recently several industry observers have expressed optimism for natural gas prices. Currently, prices are stable and there are potential upsides. Demand for gas for power generation is strong and growing. LNG exports, as well as gas sales to Mexico via pipelines, continue to grow. An unseasonably hot summer could be an added bonus. On the… Read More
Rising Crude Exports
“World Oil” reports that Mike Loya, with crude trading firm Vitol, predicts a significant increase in U. S. crude oil exports. Vitol, which shipped the first cargo of domestic crude after the 40-year old export ban had been lifted, notes that exports already reached 1.21 million barrels of oil per day (bopd) in February. Loya,… Read More
America’s Energy Mix
The Obama administration declared war on the coal industry. In a sustained assault that lasted for eight years, rhetoric, regulation and subsidies for renewables, all took their toll on the fossil fuel. Donald Trump offered a cessation of hostilities. This in turn contributed to his winning the coal producing states of Pennsylvania, Ohio, West Virginia… Read More
UAE to Cut Production
Last week the United Arab Emirates announced they would cut production by more than 139,000 barrels of oil per day (bopd). The reduction in output is part of an effort to comply with an agreement to cut production to an average of 2.874 million bopd from the current level of about 3 million. It should… Read More
The Table’s Turned
Reading a recent article in “World Oil” I could not help being reminded of the song by the Rolling Stones, “It’s All over Now”. The article recounts the harsh words Saudi Energy Minister, Ali Naimi, had for the U. S. shale industry just a year ago, “Lower costs, borrow cash or liquidate.” Admittedly, since the… Read More
