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Gas Rally at Risk
According to a recent article in “World Oil”, money managers saw the all-time high level of natural gas supplies as the high water mark. Encouraged by falling pipeline shipments and rig counts, increasing demand via exports and fuel switching from coal, and meteorologists’ predictions of a hot summer, speculators jumped on the gas band wagon. … Read More
LNG Price War in Europe
Apparently Russia and Norway have taken a page out of Saudi Arabia’s playbook. “World Oil” reports that these two nations are increasing production and driving down natural gas prices in order to preserve market share. This strategy is aimed at containing the growth of Qatari Liquefied Natural Gas (LNG) imports into Europe and preventing U.… Read More
Bear Head LNG Facility
I recently ran across an article in “World Oil” about Bear Head LNG (liquefied natural gas) buying additional land adjoining the site of its proposed facility in Nova Scotia (http://www.worldoil.com/news/2016/3/29/bear-head-lng-buys-additional-land-as-it-expands-proposed-facility ). The article went on to say that original plans were to liquefy 8 mtpa (million tons per annum) of natural gas for export to… Read More
LNG Export Risks
“World Oil” reports that analysis by consulting group, Wood Mackenzie, indicates that U. S. LNG (liquefied natural gas) exports to Europe could be exposed to several risks over the next five years. Some of these are obvious and others less so. An obvious risk is that Russia, in an attempt to preserve gas market share… Read More
Shrinking Glut?
“Rigzone” cites a Bloomberg report that the global oil glut might be starting to shrink. A month ago, international traders and major oil companies were considering buying oil and storing it on tankers. This can be profitable when a contango, or the expectation of higher future prices, exists. However, the spread between current prices and… Read More
