November U.S. Natural Gas Prices Increased Beyond Previous Market Expectations

On November 23, the natural gas spot price at the Henry Hub in Louisiana was $4.70 per million British thermal units (MMBtu), the highest price since a temporary spike in January 2018, and before that, the highest price since June 2014. The relatively sudden increase in prices exceeded the expectation of many market participants, based […]

By December 12, 2018 0 Comments Read More →

Congress moving toward passage of anti-OPEC bill

 Congress looks increasingly likely to vote on a bill that would allow the US Department of Justice to sue OPEC for antitrust violations, several sources said Friday. Versions of the bill, titled the No Oil Producing and Exporting Cartels or NOPEC Act, have been introduced in every Congress over the past 20 years, but several […]

By December 11, 2018 0 Comments Read More →

OPEC and its allies seek the nirvana of crude oil “balance”

The key concept in the wake of the decision to reduce crude oil output by OPECand its allies is “balance”. It’s something everybody in the market says they want, but they all have different ideas of what it means and how to get there. Boiled down to the basics, both the Organization of the Petroleum Exporting […]

By December 10, 2018 0 Comments Read More →

Rystad Energy: All Eyes on Vienna

The OPEC + countries must cut 2019 supply growth by 1.5 million bpd if they want oil prices back above $70 next year. US production at $50 WTI levels would remove only 0.4 million bpd of the looming 1.5 million bpd surplus in the balances that Rystad Energy forecasts for 2019 in a status quo scenario. […]

Russian romancing, Saudi intrigue precede OPEC meeting

Those with long memories probably can recall when meetings of the OPEC oil exporters cartel were major news events, on one occasion horrendously inflated by the terrorist Carlos the Jackal seizing the 11 ministers attending. Without the latter ingredient, one hopes, this week’s meeting in Vienna on Thursday and Friday could dominate many front pages. Even before […]

Qatar exits OPEC to focus on LNG

Qatar’s decision to become the first Middle East member country to leave OPEC and focus on its core strength of gas exports has stunned the cartel. Qatar’s energy minister Saad Al-Kaabi said Monday that the gas-rich sheikhdom will exit the oil producer group on January 1 after 57 years of membership to concentrate on building […]

The Saudi Dilemma: To Cut Or Not To Cut

To cut and push up prices or not to cut and preserve market share, this is the question that Saudi Arabia is facing ahead of this year’s December OPEC meeting. It seems like just yesterday when OPEC met in 2016 and decided to cut production by 1.8 million barrels daily, including from Russia, to reverse […]

Natural Gas Prices in the Permian Basin Likely to Remain Low During 2019 Due to Constrained Pipeline Capacity, says GlobalData

“A direct consequence of the excess of natural gas supply is the low prices at which Permian gas is traded at the Waha Hub in north Pecos County. During the last quarter of the current year, the average discount to Henry Hub price has average around US$1.45 per thousand cubic feet (mcf) and earlier this […]

Save the planet, burn fossil fuel

In 2007, at the urging of President George W. Bush, Democrats and Republicans together created a massive new mandate for the production and sale of biofuels. It was environmental folly. The public is familiar with that part of the renewable fuel mandate about ethanol, the politically favored, wasteful, and environmentally destructive product that is blended […]

By November 30, 2018 0 Comments Read More →

Analysis: Trump and Saudi Collision on Oil, and Bingaman’s Return to Santa Fe

In an earlier column, readers overseas benefited from this writer’s forecast that crude oil prices would fall dramatically because most commodity traders got it wrong. Simply, this column’s analysis was the buying of oil assumed a shortage would result once the sanctions against Iran would be activated the first week of November. President Trump wanted lower […]

By November 29, 2018 0 Comments Read More →