• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 2 hours U.S. Presidential Elections Status - Electoral Votes
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 55 mins Evergrande is going Belly Up.
  • 1 day Australia sues Neoen for lack of power from its Tesla battery
  • 16 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 13 hours Europeans and Americans are beginning to see the results of depending on renewables.
  • 2 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 2 days Oil Price: does the security vacuum in the Middle East spook investors?
  • 7 hours Ozone layer destruction driving global warming
  • 3 days Forecasts for Natural Gas
  • 5 days Ten Years of Plunging Solar Prices
  • 5 days Extraction of gasoline from crude oil.
Hydrogen Fueled Cars Are Making A Comeback

Hydrogen Fueled Cars Are Making A Comeback

The mass adoption of electric…

Oilmen Are The Newest Clean Energy Entrepreneurs

Oilmen Are The Newest Clean Energy Entrepreneurs

The energy industry is evolving…

The World’s Top LNG Trader Is Predicting A Natural Gas Comeback

Oil and gas supermajor Shell, which is also the world’s top liquefied natural gas (LNG) trader, is confident that the global LNG market will return to the levels before the COVID-19 pandemic, chief executive Ben van Beurden told Bloomberg in an interview published on Wednesday.

“We will obviously flex our investment program to be aligned with where we believe the sector will go, but the profitability of the business and the outlook of this business is going to be as good as what you saw before the pandemic,” van Beurden told Bloomberg.

Before the pandemic wiped out a lot of LNG demand, Shell said in its annual LNG Outlook 2020 in February that longer-term demand was expected to double to 700 million tons by 2040, while in the short term, balance would be restored by 2021 due to slower supply growth.

Even though the forecasts for the short term were totally upended by the coronavirus pandemic, Shell “still very much believe that with the current supply-demand outlook, this is a fundamentally strong sector that will grow at a rate that is close to 4% per year,” van Beurden told Bloomberg.

But after the oil price crash, Shell recalibrated some of its LNG plans and exited the proposed Lake Charles LNG project in Louisiana in late March, citing initiatives “to preserve cash and reinforce the resilience of our business.”  

Van Beurden’s optimism about the LNG market is in contrast with a more pessimistic view regarding oil demand recovery.

Related: Why Saudi Arabia Will Lose The Next Oil Price War

“We are looking at a major demand destruction that we don't even know that will come back,” the manager said at Shell’s earnings call at the end of April. 

In the LNG market, the industry is about to face its first seasonal demand contraction this summer since 2012, Wood Mackenzie said earlier this month.  

“In general, a return to stronger growth is not expected until mid-2021,” Wood Mackenzie research director Robert Sims said.  

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News