In case you missed them, here are some highlights from Breaking Energy this week. First things first… There’s a solar-powered boat! And a solar-powered plane! And they’re coming to NYC! We’re giddy. So are the guys on the boat. The multi-year downturn in natural gas drilling, caused by at times astonishingly low prices, may be… Keep reading →
Small-scale, domestically produced LNG has the opportunity to capture at least a share of an 8 trillion cubic foot a year market, but risks to adoption could hamper investment by both potential suppliers and end-users. Much of the discussion about liquefaction of domestically produced US gas has revolved around the potential for large-scale projects for… Keep reading →
Shell says its investments in North American natural gas fueling infrastructure are focused solely on liquefied natural gas, citing greater infrastructure challenges for compressed natural gas (CNG) vehicles and greater in-company expertise in producing LNG. Shell has announced several initiatives to supply LNG to the North American transportation sector. These include a joint venture with… Keep reading →
Barclays is forecasting a long-term US natural gas price of $4.75 per million Btu, asserting that the $4.50-$5.00/MMBtu range is the golden mean that can both drive demand growth and ensure sufficient supply. “Natural gas prices at $4.50-5.00/MMBtu are high enough to motivate sufficient gas drilling to meet projected demand in the long run: a… Keep reading →
There are a few potential demand growth opportunities for electricity; not all are bad. Every now and then a new electricity-guzzling device comes around and gives a boost to what would otherwise be a saturated electricity business. Central air conditioning, which is now considered a standard feature in nearly all new buildings virtually all over the world,… Keep reading →
Natural gas vehicles will need “strong regulatory support” to provide a meaningful boost to US gas demand in this decade, owing in part to a dearth of refueling infrastructure, says Barclays analyst Shiyang Wang. Natural gas is far cheaper on an energy-equivalent basis than diesel, offering an obvious incentive to make the switch from a… Keep reading →
Saudi oil output hit a record 9.51 million barrels per day in 2012, when the country lifted output to offset the impact of supply disruptions in Libya and a 1 July EU embargo on Iranian crude shipments. Saudi Arabia exported about 6.9 million bbls/d of oil last year, of which more than 50% went to… Keep reading →
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 →
Experts Endorse US LNG Exports In response to a recent House Foreign Affairs Subcommittee hearing on the economic and geopolitical opportunities of natural gas exports, Bill Cooper, president of the Center for Liquefied Natural Gas issued the following statement: “Thursday’s hearing adds to the growing understanding that LNG exports are a huge opportunity for the… Keep reading →
Moody’s analysts are have weighed in on prospects for liquefied natural gas (LNG) exports from the US, forecasting that chemical companies and utilities could see some negative impact from higher domestic natural gas prices, but not enough to bring down their credit ratings.
Moody’s expects US LNG export capacity to rise to 6.3 billion cubic feet per day by 2020 – equivalent to 178.4 million cubic meters per day, compared with global exports totaling 330.8 billion cubic meters per day in 2011, according to BP’s Statistical Review of World Energy. “We do not expect the volume of exports from North America will have a significant impact on the global LNG trade during this decade,” the rating agency said in a report, The Prospect of US LNG Exports Influences Pricing and Gas Markets Worldwide. Keep reading →
