Posts Categorized: Blogs

While U.S. crude exports are increasingly important for the health of the oil and gas complex, they have come under pressure amid the COVID-19 coronavirus. In this article, we’ll describe why crude exports matter, and why they’re probably going to drift upwards in subsequent months. Exports and Production The story… Read more »

It’s been a tough Spring and Summer for U.S. propane markets. Netbacks from the international markets  have come under severe pressure due to COVID-19. While  prices bottomed out in March 2020, most benchmarks have still not recovered to year-ago levels, and export volume levels have only recently rebounded to year-ago… Read more »

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 »