The large gap between domestic US natural gas prices and LNG prices in European and Asian markets that underlies the rationale for US LNG exports has raised the question: when US gas is sold abroad, who captures that spread? The difference between low prices paid for gas produced in the US – currently trading at… Keep reading →
Sustained growth in spending on exploration and production across the globe will focus on plays outside North America, a survey from a global bank concludes, despite the country’s growing profile and its potential to become the top global crude producer in coming decades.
Global exploration-and-production spending is poised to reach a record $644 billion by the end of 2013, a semi-annual Barclays analysis predicts. The spending report also foresees strong oil prices, which have emerged as the principal bellwether for growth in E&P budgets. Keep reading →
Coal that’s being priced out of the US market by cheap natural gas is being burned instead in Europe, where it’s cheaper than natural gas with prices traditionally linked to oil.
The resulting pressure is beginning to break down those links, and the differential between natural gas prices in the US and Europe could diminish significantly before any US liquefied natural gas (LNG) can be exported. Keep reading →