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Energy / Natural Gas

  • Natural Gas Overwhelmingly Replaces Coal

    A new Breakthrough analysis looks at regional power generation data and finds that cheap natural gas has overwhelmingly displaced coal generation, not other sources of low-carbon energy, such as renewables, nuclear, or hydro. In fact, in regions where gas generation has grown, nuclear and hydro generation has either remained stable or risen. Growth of non-hydro renewables, by contrast, can account for little of the decline in coal generation, the analysis finds. Ultimately, the growth of natural gas generation, along with reduced electricity demand, is responsible for the vast majority of reduced emissions in the US power sector since 2007. The…

  • LNG Export Hopes Fading Fast For US

    The advent of liquefied natural gas (LNG) has revolutionized the way the commodity is transported and has brought increased parity to traditional pipeline relationships. In that regard, the United States’ natural gas boom was right on time. However, somewhat slow to react to market demand, the US may just be missing its window. Since 2000, global LNG demand has risen by an estimated 7.6 percent per year. Nowhere is this increase in demand more apparent than in Asia, which comprises two-thirds of the global LNG market. Japan and South Korea account for roughly half of that, but less mature markets…

  • Chevron Pulls Out Of $10 Billion Gas Deal With Ukraine

    Ukraine’s bid to rid itself of its dependence on Russian energy just took a huge hit. Chevron announced that it was pulling out of a deal that it made with the Ukrainian government to develop shale gas in western Ukraine. The $10 billion deal was signed before the ouster of former Ukrainian President Viktor Yanukovych. Chevron indicated that it was unsatisfied with the tax regime in Ukraine, after the post-Yanukovych government raised energy taxes. “We have just terminated that PSA (product sharing agreement),” said Peter Clark, Chevron’s country manager in Ukraine, according to Kyiv Post. “When it was signed, things…

  • Russia Hopes To Win Turkey Over With New Pipeline Deal

    Energy-poor Turkey stands to benefit from Moscow’s surprise decision to drop the $45-billion South Stream natural gas pipeline project, analysts say. At the same time, it raises questions about whether Turkey will become a pawn in the broader energy contest between Russia and the EU. Ankara has long been keen to wean itself off Russian energy, which currently accounts for an estimated 57 percent of its gas needs, according to the 2014 BP Statistical Review of World Energy. Both the Turkish government and the European Union had seen gas imports from Azerbaijan, a cultural cousin and close ally of Ankara’s,…

  • Will Low Oil Prices Shatter LNG Hopes?

    Introduction As 2014 draws to a close, the oil markets are in free fall, leaving energy investors with few good options. Oil prices are now at five-year lows with no indication that they will recover in the short-term. Even worse, the pain from low oil prices is rippling through other markets, including the global liquefied natural gas (LNG) trade. In fact, LNG investments are looking worse than they have in years. That is because prices for LNG in Asia – where much of the global growth is expected to come from – are linked to the price of crude oil.…

  • Wine And Gas Battle It Out In Northern US

    Wine and gas tend not to mix. In upstate New York, a midstream oil and gas company is running into stiff local opposition for its plans to build natural gas infrastructure. Crestwood, a Texas-based company, has proposed plans to build natural gas storage facilities on Seneca Lake, a picturesque site in the heart of New York’s wine country. Crestwood already owns several natural gas storage facilities in New York, storing natural gas and natural gas liquids produced from the Marcellus Shale. Crestwood has proposed an additional site near the town of Watkin’s Glen on Seneca Lake. It would consist of…

  • South Stream’s Demise Shakes up Italian-Russian Relations

    The “Putinian Pax Energetica”—Russia’s strategic use of energy exports and pipeline politics to influence countries in its neighborhood—is faltering, and Italy now appears to be taking countermeasures to deal with it. On December 1, during a state visit to Turkey, Russian President Vladimir Putin finally sentenced to death his proposed South Stream natural gas pipeline. This Russian-led mammoth energy initiative had languished for years as a virtual project (see EDM, September 30, 2009; July 27, 2012; July 17, 2014), and more recently Italy has played its part in burying it. This development can be taken as an indication that Rome…

  • Utica Pipeline Could Send Ohio Gas To Gulf Coast

    A proposed pipeline in Ohio just received federal approval, which could connect shale gas from the Utica basin to the Gulf of Mexico. Eastern Ohio is home to the Utica shale, which is thought to hold around 38 trillion cubic feet of natural gas. Whereas the Marcellus shale has been the cornerstone of the shale gas bonanza in nearby Pennsylvania for several years, the Utica is a more recent phenomenon. In January 2012, drillers in the Utica produced just 155 million cubic feet of natural gas per day. But that number skyrocketed to 1.6 billion cubic feet per day as…

  • South Stream Pipeline May Not Be Dead Yet

    The European Commission's new energy chief says that Russia could revive the South Stream natural-gas pipeline project if it follows EU rules. In an interview with RFE/RL on December 5, Maros Sefcovic said that the EU was willing to discuss the project to pump gas under the Black Sea to Europe, but that Russia must abide by EU energy rules and drop a complaint over the issue in the World Trade Organization (WTO). Russian President Vladimir Putin abruptly announced on December 1 that Russia was abandoning South Stream and blamed the EU, saying European opposition to the project had forced…

  • The U.S. Gas Pipeline Network Undergoing Major Overhaul

    Natural gas production in June 2014 for the Marcellus Shale reached 15 billion cubic feet per day which has led to abundant supplies keeping a lid on prices. Even more stunning is the fact that production could rise to 24 bcf/day by 2020. Without a massive build out of pipeline capacity, the enormous volumes of natural gas will struggle to reach consumers. This is not lost on major pipeline companies, which are already undertaking major capacity expansions. In early December, the Federal Energy Regulatory Commission (FERC) gave the go-ahead for the construction of the Constitution Pipeline, which will be built…