Insider Secrets

Insider Secrets

Learn how the PROs are making money from the oil and energy market.

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Energy / Gas Prices

  • This Six-Year Running Oil And Gas Trend Just Reversed Itself

    The U.S. Senate this week approved a bill to speed permitting of new liquefied natural gas (LNG) export facilities. Just as news from one of the world’s most important LNG consumers shows the market isn’t what it used to be. The place is Japan. Where statistics released Wednesday showed that annual Japanese LNG demand fell for one of the first times in recent memory. Trade data showed that Japan’s total LNG imports for the fiscal year ended March 31 were down 6.2 percent as compared to the previous fiscal. With the country bringing in a total of 83.571 million tonnes…

  • Where Is The LNG Glut Going?

    (Click to enlarge) This is part 3 of a Part 4 articles series, part 1 can be found here and part 2 here Depending on the sources and the timeliness of their information, you can find estimates of new liquefaction capacity coming on stream worldwide, by 2020, from 121 to 145 Mtpa. Over half of the high estimate of 145, according to FERC data, consists of the U.S. LNG export terminals now under construction, 83 Mtpa, although I don’t know if the 83 Mtpa includes any production trains on which its sponsor, particularly Cheniere, has changed its mind since the…

  • ExxonMobil To Strike Biggest Deal Since Oil Bust Started

    There’s been a lot of gloom about the oil and gas sector lately. With many firms slowing or completely stopping project development. But this week news from an unexpected part of the world shows signs of life. With the world’s largest public E&P company moving in a surprisingly aggressive manner on a key M&A deal. The firm is ExxonMobil. Which Reuters reported over the weekend is close to closing a major strategic project acquisition, in a new spot for the major. That’s Mozambique. Where sources said Exxon is preparing to buy a 15 percent stake in the massive Area 4…

  • Nat Gas Investment Outlook Is Bleak

    I’ve been talking almost exclusively about oil in the past dozen columns I’ve written for you – but what about natural gas? Many people continue to inquire about my thoughts on the long-term trajectory of Nat gas and whether they mirror my thoughts on oil. Is there value to be found in ‘survivor’ natural gas stocks, like Devon (DVN) or EQT Corp (EQT), as I maintain there is value in the ‘survivor’ oil stocks? In short, the scenario for ‘natty’ remains bleak. The long-term market for natural gas shares similarities to oil – there is a known glut in both…

  • Gazprom Braces For Gas Price War With U.S. LNG

    U.S. oil drillers have been hollowed out from what has been described as a price war waged by OPEC. But a separate price war might soon descend upon the U.S. natural gas industry, which is already reeling from a downturn in prices. The market for natural gas is not a global one in the same way that it is for crude oil. So while supply and demand fluctuations will reverberate around the world, the full effects of sudden shifts in fundamentals are usually confined to regional markets. A global surge in natural gas export capacity is making the gas trade…

  • Silver Lining For Natural Gas As EIA Forecasts Price Hike

    While natural gas producers in the U.S. have been suffering a price slump no less considerable than the oil price decline over the last couple years, they may now have cause for celebration as investors will be eyeing the Energy Information Administration’s (EIA) latest Short-Term Energy Outlook, which forecasts a rise in gas prices alongside consumption over this year and next. Prices fell from around $4.70 per million British thermal units (MMBtu) in June 2014 to $1.93 in December 2015, the lowest since March 1999, the Agency said. Yet this seems to be about to change with the industrial use…

  • Anxious Natural Gas Traders Forget Fundamentals

    February Natural Gas The big story the past week was the nearly 25 percent surge in February Natural Gas futures prices. The move was driven by the change from extremely warm temperatures in key demand areas in December to forecasts of below normal temperatures for early January. After settling at its lowest level in 16-years on December 17, natural gas went on a tremendous run which took prices to their highest level since November 19. The move took many traders by surprise, causing a short-squeeze in the January futures contract, which expired on December 29. The price action on December…

  • Gazprom Rapidly Losing Grip On European Markets

    When talking about energy security in Central and Eastern Europe (CEE), most governments think of gas pipelines. The bigger they are, the more secure they feel. In the past decade, at least 10 large-scale pipeline projects have been initiated and proclaimed as the ultimate source of gas diversification and energy security. However, just one has been actually realized – Nord Stream – and still Gazprom can fill its capacity only half-way making the project largely uneconomical. The reason is that large cross-continental pipelines are risky business endeavors in a very volatile market. They require enormous fixed investment, long-term predictable demand…

  • Shale Gas Revolution Is Not Done Yet

    Most of the time companies see greater productivity as a good thing. Improved asset productivity helps companies produce more output for every dollar of input which usually increases profits. But what if every company across an industry produced more output? That is exactly what is happening in the natural gas market right now, and the results are looking increasingly dire for natural gas companies. This summer, EQT Corp drilled what might be the largest natural gas well ever in the U.S. The summertime gusher in Pennsylvania’s Green County put out enough gas in the first 24 hour to power every…

  • Natural Gas Companies Slammed By Low Prices

    Natural gas spot prices continue to hover near multiyear lows, putting increased pressure on natural gas producers as revenues sink. Although rig counts have been falling for years, a handful of rigs continue to disappear each week. The natural gas rig count is down to just 193 as of mid-November, down by nearly half from this point a year ago. To make matters worse, oil rigs are also vanishing, so the associated natural gas that is produced in conjunction with oil is also starting to tip. Natural gas production nationwide was down 0.2 percent for the week ending on November…

Martin tiller