Posts Categorized: Articles

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 »

As we wrote in our July 2020 newsletter, crude and products demand faces a hard ceiling, a softer floor, and a narrowing range. Demand likely won’t exceed pre-COVID levels until the virus is defeated; new outbreaks could curtail demand (albeit not to April or May levels); and better understanding of… Read more »

It’s natural gas producers’ turn in the barrel. Natural gas prices are falling to historic lows amid higher-than-expected storage builds, but downside risks are severe and perhaps underappreciated. Domestic demand for natural gas has been crushed by COVID, and LNG exports are out of the money until September – and… Read more »