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Traders Bet Big on Shale

The big international oil trading firms bridge the gap between producers and consumers. To do so, they devote resources to intelligence, gathering systems, processing plants, and terminals.  Operating on a global scale, they are not going to deploy assets in areas in which they do not foresee long term opportunities.  According to a recent article… Read More

Myths and Misconceptions

Last month, writing in “Oil Voice”, Art Berman sought to contradict an article on the Wall Street Journal’s editorial page entitled “Lessons from the Energy Export Boom”. While some of the details have changed since that time, it is helpful to reiterate Berman’s points which debunked some industry myths and misconceptions. While we like to… Read More

McKinsey’s Shale Forecast

A recent article in “World Oil” offered a summary of consulting firm McKinsey Energy Insight’s (MEI) “North American Shale Outlook”. MEI’s forecast assumes oil prices ranging from $60-$70 per barrel from 2019 onward.  At these prices the firm projects that shale related drilling and completion activity will increase by 20% per year through 2021.  Concurrently,… Read More

LNG Sale to Korea

“World Oil” reports that while Cheniere Energy has already shipped eight cargoes of LNG (Liquefied Natural Gas) from its Sabine Pass, Louisiana, facility to South Korea, the arrival of the SM Eagle in country early this month will be something special. Previous shipments have been spot sales, but the SM Eagle will be the first… Read More

Marcellus Merger

Writing in “Oil Voice”, Julia Weiss with Norwegian consulting firm, Rystad Energy, reports on the structure of the recent combination of EQT Corporation and Rice Energy, and her firm’s evaluation of the transaction. As part of the $8.2 billion deal, EQT will provide Rice shareholders with $5.4 billion of EQT stock, $1.3 billion in cash… Read More