Insider Secrets

Insider Secrets

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

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Energy / Natural Gas

  • This Unique Strategy Just Paid Record Returns For One Nation

    I've been discussing in Prime Meridians how natural resources investment is changing. With one of the biggest emerging trends being sovereign investment in mining and energy. And new data this week showed why this critical shift is going to continue. The numbers came from Japan--a nation that was one of the earliest to pursue strategic overseas investment in natural resource projects. A program that is now bearing fruit in a major way. As reported by Platts, Japan's Ministry of Economy, Trade and Industry released new data Monday showing that the country's overseas oil and gas projects are producing at record…

  • Russia’s Natural Gas Plans May Be Little More Than Hype

    Russia has publicly touted an array of natural gas export projects over the past year, a web of pipelines that would connect Russian gas to some of its largest customers, while also achieving important strategic objectives. But many of these projects will not come to pass. Russia is one of the world’s largest producers of natural gas, and Europe has long been its most important customer. But that suddenly changed after the Ukraine crisis began in early 2014. Since then, Europe has made some small but important steps towards reducing its dependence on Russian gas, while weak demand, mild winters,…

  • Is Natural Gas As Clean As We Think?

    This week U.S. President Barack Obama took aim at the American coal industry as part of a comprehensive climate change plan to limit air emissions from what many consider the country's worst polluter.Under the plan, states will have until 2030 to cut CO2 levels by a third from what they were in 2005. Outside the United States, Europe is using less coal, the Canadian province of Ontario shut down its coal-fired power generation (albeit in favor of more expensive renewables), and the World Bank last week rejected the notion that coal can cure poverty.Even coal-hungry China has banned coal-fired power…

  • One Week, $2 Billion Invested In This Next Energy Hotspot

    Under the heading of "what's next in energy", there's one standout part of the sector these days. Mexico. Much of the energy world has been excited about newly-opened E&P opportunities in the country. But two deals last week show that investment dollars are in fact pouring into a completely different part of the business here -- natural gas pipelines. Related: How Russia’s Energy Giant Imploded The action kicked off with a major project finance package for Mexico's Fermaca Enterprises. With the midstream firm securing $820 million for a new pipeline between Chihuahua and Durango -- from a consortium of lenders including…

  • A Reality Check For U.S. Natural Gas Ambitions

    Something unusual happened while we were focused on the global oil-price collapse–the increase in U.S. shale gas production stalled (Figure 1).Figure 1. U.S. shale gas production. Source: EIA and Labyrinth Consulting Services, Inc.(click image to enlarge) Total shale gas production for June was basically flat compared with May–down 900 mcf/d or -0.1% (Table 1).Table 1. Shale gas production change table. Source: EIA and Labyrinth Consulting Services, Inc. (click image to enlarge) Marcellus and Utica production increased very slightly over May, 1.1 and 1.5 mmcf/d, respectively. The Woodford was up 400 mcf/d and “other” shale increased 300 mcf/d. Production in the…

  • Could We See A Peak In Natural Gas Production Soon?

    The views expressed in the post are those of Dennis Coyne and do not necessarily reflect the views of Ron Patterson. The post that follows relies heavily on the work of Paul Pukite (aka Webhubbletelescope), Jean Laherrere, and Steve Mohr. Any mistakes are my responsibility. For World Natural Gas URR Steve Mohr estimates 3 cases, with case 2 being his best estimate. Case 1 URR= 14,000 TCF (trillion cubic feet)Case 2 URR= 18,000 TCFCase 3 URR= 27,000 TCF Jean Laherrere’s most recent World natural gas URR estimate is close to Steve Mohr’s Case 1 at 13,000 TCF. A Hubbert Linearization(HL)…

  • Where In The World Is The Shale Gas Revolution?

    As it stands the global shale gas revolution is missing in action. To be sure, its impact in the United States – and the subsequent ripple worldwide – was nothing short of game-changing, but the wave of enthusiasm has yet to produce substantial results outside of North America. Still, the dream is far from dead and exciting prospects abound from Argentina to China, and elsewhere in between. Both shale gas and tight oil – more than happenings in Iran, or drilling in the Arctic – look primed to be the dominant market movers in the short- to medium-term. The U.S.…

  • North-American LNG Could Weaken Russia’s Grip On Europe

    December 2015 could mark the dawn of a new era – Cheniere Energy is expected to start up the first train of its Sabine Pass LNG export facility, turning the U.S. into a global player in the LNG export market. But Cheniere Energy has even more ambitious plans. According to Reuters, the Houston-based company has plans to supply Eastern Europe with LNG in just a few years, including a floating regasification terminal off the coast of Croatia. That would allow American-produced natural gas to reach Central and Eastern Europe. Cheniere is considering floating regasification because an onshore LNG import facility…

  • China Furious Over Rig Pictures: "What Japan Did Provokes Confrontation"

    On Wednesday, we detailed China’s latest maritime dispute with a US ally. Just as the back-and-forth banter and incessant sabre-rattling over Beijing’s land reclamation activities in the Spratlys had died down, Washington and Manila passed the baton to Tokyo in the race to see who can prod the PLA into a naval confrontation first. To recap, Japan apparently believes that China is strategically positioning rigs as close to a geographical equidistance line as possible in order to siphon undersea gas from Japanese waters. Here’s a map showing the position of the rigs and the line which divides the countries’ economic…

  • Natural Gas Needs To Clean Up Its Act

    To call natural gas ‘clean’ would be a misnomer. Natural gas is a fossil fuel that emits carbon dioxide when burned and is an important contributor to climate change. The general consensus, however, is that when compared to oil (and petroleum products) or coal, natural gas it is by far the ‘cleaner’ choice for providing base-load power generation, heating homes, and for a series of other industrial and transport applications. Still, the debate over methane emissions from natural gas production, transport, and distribution calls into question this assumption. A new study by the Environmental Defense Fund (EDF) examined the methane…

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