• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 11 hours EU has already lost the Trump vs. EU Trade War
  • 3 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
  • 5 mins Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaigne to lower expectations.
  • 7 hours Climate Change Consensus Shifts in Wind, But Gas Is Still the Right Move
  • 9 hours World oil demand will keep growing until 2030, climate-damaging emissions longer, says IEA
  • 21 mins Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 14 hours Shale Gas News – November 9, 2019
  • 17 hours ''Err ... but Trump ...?'' #thedonkeystays
  • 4 hours Iran's Master Plan?
  • 11 hours Does .001 of Atmosphere Control Earth's Climate?!
  • 3 hours Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani
  • 19 hours The lies and follies of the "cry wolf" enviros: No more fire in the kitchen: Cities are banning natural gas in homes to save the planet
  • 18 hours CHK Trading @ 90 Cents
  • 10 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
Alt Text

Is The U.S. Gas Boom Already Over?

As natural gas prices continue…

Alt Text

US To Supply More Than Half Of Global Gas By 2035

The United States is expected…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

A New World Order Is Emerging In Natural Gas

Brazil’s Petrobras and partners produced their billionth barrel of oil from presalt fields this month. Underlining one of the biggest shifts to happen this decade in global crude output.

And news yesterday suggests we may be about to see another mega-shift in energy. In the worldwide natural gas business.

That was a deal struck by petro-major BP. Which is spending nearly a billion dollars to get into projects in an unexpected part of the world: western Africa.

BP said it has reached an agreement to buy stakes in development projects in Senegal and Mauritania. Which the major is acquiring from junior developer Kosmos Energy, in exchange for $162 million cash — and subsequent payment of $754 million in appraisal and development expenses.

That’s a big outlay for BP. But the prize on the western African licenses is commensurate — with Kosmos’ recently-discovered Tortue field in Mauritania holding a currently-estimated 15 trillion cubic feet of natural gas.

In fact, BP said it believes the complete acreage acquired under this deal could hold up to 50 trillion cubic feet. And those big numbers have the major eying the region as the world’s newest center for natural gas development.

BP’s chief executive officer Bob Dudley summed up these ambitions succinctly. Saying the company is looking to “create a new LNG hub in Africa.” One which he noted will be supported by low production costs and “advantaged access” to global gas markets. Related: Rosneft To Ramp Up Global Expansion Under Trump

Indeed, as the map below shows, Mauritania is well-located for shipping LNG to key markets in South America and Europe. Markets that are distant from much of the Asia-focused LNG production building taking place in countries like Papua New Guinea and Australia.

Mauritania (red peg) is located close to LNG consumers in Europe and South America

BP may thus be pioneering a “new world order” for natural gas. Zeroing in on new markets at a time when much of the focus has shifted to Asia.

That could be very good news for the West Africa energy complex. Helping to spur infrastructure development and investor confidence here. Watch for results from BP’s development drilling planned for 2017, and for further news on timing of development plans in this critical area.

Here’s to seeing the future.

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Bill Simpson on December 26 2016 said:
    50 trillion cubic feet possible! Putin won't like that, but Europe will. BP might not have to cut their dividend much. It sure beats running out.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play