• 4 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 7 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 10 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 . . . .
  • 13 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 14 hours The 5 Scary New Rules Of Upside-Down Capitalism
  • 9 mins Hydrogen Hurdles in Japan
  • 5 hours U.S. Shale To Break Records Despite Bearish Rhetoric
  • 3 hours Winter Storms Hitting Continental US
  • 24 hours More dumbed down? re Hong Kong Act of Congress
  • 16 hours PennEast Appealing Wacky 3rd Circuit Decision to Supreme Court
  • 18 hours Impeachment S**te
  • 1 day Petroleum Industry Domain Names
  • 16 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 16 hours Contaminated Oil
  • 1 day U.S. Shale Output may Start Dropping Next Year
  • 16 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 13 hours Aramco IPO magic trick
  • 16 hours Conoco next gen test wells Vintage 5 (V5) 20% recovery and say " We can do even better "
  • 15 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

The Worst Oil Trades Ever Made

Wall Street is full of…

Dave Forest

Dave Forest

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

More Info

Premium Content

They're Desperate For Natgas Here--and Raising Prices

Sometimes a ho-hum resource destination can go to a superstar overnight.

Often driven by changes in local prices.

That may be the case in one of the world’s important petroleum production regimes: Egypt.

Reports emerged last week from Reuters, suggesting that the Egyptian government is considering raising prices for natural gas. The stated goal being to spur more exploration for the commodity.

Related: How will Libya’s ongoing crisis affect MENA region?

The move here is driven by need. The country recently reported that its August natgas exports were down more than 86%, as compared to the year-ago period.

The reason is a combination of falling domestic output, and rising local consumption. Production within Egypt was down 14% during the month. While gas usage by the power sector jumped to 67% of overall consumption, up from 60%.

The government didn’t offer any details on how much prices could rise. But reports suggest the country will offer necessary incentives for producers to increase exploration and output.

Whatever the rise, it’s likely to be an improvement on current project economics. With gas right now selling for $2.65 per Mcf—one of the lowest rates globally.

Related: The God King Of Egypt

This could be a signal of opportunities emerging for producers here. Underinvestment in the natural gas sector means that Egypt’s fields haven’t seen a lot of attention in recent years. Raising the possibility of major discoveries still to be had, especially in light of the country’s already-proven petroleum systems.

Right now, those discoveries wouldn’t mean much in terms of economics. But at higher prices they could turn into very viable projects.

The change could happen quickly. Watch for further announcements from the government on pricing details. And for companies moving to take acreage positions ahead of such changes.

Here’s to raising the bar,
Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




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