Posts Categorized: Articles

The Appalachian basin is likely to have ample pipeline takeaway capacity for the foreseeable future. With abundant spare pipeline capacity, we expect that Appalachian benchmarks will continue to show a narrowing of basis relative to Henry Hub. Appalachia’s “basis blowouts” seen in 2015 and 2016 are probably a thing of… Read more »

Gasoline and diesel demand continue to rise slowly and are even beginning to approximate “normal” levels. Hurricane Laura threatened to disrupt key nodes of the U.S. oil and gas complex, but both Port Arthur and Houston appears to have been largely spared. Hurricane Laura proved weaker than feared, and the… Read more »

U.S. pipeline natural gas exports are tightening local supply, but Cheniere’s portfolio management limits downside risks Natural gas exports to Mexico in 2020 have offered a lifeline to a U.S. natural gas industry struggling with COVID-19 and falling LNG exports. Eagle Ford and Permian producers have benefitted from this trend,… Read more »

WTI prices showed remarkably stability in July, as prices closed between $39.64 and $41.88/barrel. This data is consistent with what we’ve written before: crude prices face a hard ceiling, a soft(er) floor, and a narrowing range. There’s a hard cap on prices until a vaccine unlocks demand, downside risks could… Read more »

U.S. LNG’s summer from hell is almost over, as netbacks show an increasingly favorable environment. While U.S. LNG exporters can breathe a sigh of relief, it’s too soon to reach for the champagne: European storage injections are slowing but remain above last year’s highs, and many European countries are experiencing… Read more »

COVID 19 has reduced production from shale basins across the U.S., limiting wet gas production and the extraction of associated NGLs. In this article, we will discuss the impact of lower NGL production  on U.S. gulf coast fractionation balances and spot fractionation rates. Since 2012, robust oil-directed drilling has resulted… Read more »