With WTI and Brent crude prices trading in the mid-80s and OPEC+ failing to deliver planned supply hikes, talk of a release from the U.S. Strategic Petroleum Reserve (SPR) is getting louder and louder. While we think triple-digit prices are a low probability event (not to mention highly unsustainable), and… Read more »
Posts Categorized: Blogs
Permian Entities Consolidate
The Permian basin has gone through a prolific growth period since the shale boom began last decade. Permian basin natural gas production has almost grown 400% from late 2012 to mid-2021, surging from 4.5 Bcf/d in 4Q12 to 18 Bcf/d in 2Q21. During that time, new entrants (in the upstream… Read more »
Coal in ERCOT: which plants are at the highest closure risk?
Closure of ERCOT coal electricity generation capacity is only a matter of timing due to a confluence of economic and social trends. Despite a temporary recovery in 2021 coal generation (thanks to soaring gas prices), we expect the most polluting electricity generation source to become increasingly uncompetitive compared to natural… Read more »
Natural Gas Storage Assets Coming Back to Life?
Tight U.S. natural gas supply-demand balances have generated renewed interest in natural gas storage assets among end-users, marketers/traders, operators, developers, and the financial community. After almost a decade of lackluster performance for natural gas assets, the midstream community is taking a second look at natural gas storage assets that thrive… Read more »
Why there (probably) won’t be an oil crisis
With commodities and goods such as coal, LNG, and computer chips commanding eye-popping prices, Bank of America analysts are predicting a return to triple-digit crude oil prices this winter. While we do not rule out that crude prices will flirt with $100/barrel sometime this winter, we regard this development as… Read more »
Brighter Skies for Greenfield North American LNG Projects
It’s boom times for LNG markets. The forward strip is showing JKM winter 2021/2022 spot prices exceeding $40/MMBtu, a more than 700% increase from the 2019/2020 winter. Indeed, global gas markets are currently experiencing a near-perfect storm: demand is rising; the sector has faced underinvestment for years; wind production disappointed… Read more »