Natural gas futures crept up early Tuesday and hung on to a narrow advance on the day as heat took hold in the West and weekend weather forecasts trended modestly warmer, creating potential for increased air conditioner use that could begin to offset weakening demand for U.S. exports. The July Nymex contract settled at $1.777/MMBtu, up three-tenths of a cent day/day. August rose a half-cent to $1.876.
Articles from Mackenzie
As the oil market rout continues, a clearer picture is emerging of its impacts on global natural gas trade, with analysts predicting both downside and upside consequences for various regions across the world.
China is forecast by some prognosticators to become the world’s third largest natural gas producer by 2027 but imports still could increase because of lower shale and coalbed methane (CBM) production.
Australia’s BHP, which has a substantial foothold in North America’s offshore, on Wednesday launched a five-year, $400 million climate investment program to develop technologies to reduce emissions from its operations and those generated from the use of its resources.
An escalating trade war between the United States and China will put U.S. liquefied natural gas (LNG) exporters at a disadvantage and threatens to stall not-yet-sanctioned projects, according to analysts.
Europe, specifically the northwest part of the continent, will have to absorb the surplus liquefied natural gas (LNG) supplies expected to hit the market this year as an economic slowdown, a more thoughtful approach on coal-to-gas switching and increased domestic infrastructure availability will lead to slower demand in China, according to Wood Mackenzie.
The deepwater oil and gas industry has come out of its sustained downturn, but it now faces impending cyclical cost inflation that could wreak havoc on its work to cut expenses, according to Wood Mackenzie.
Global oil and natural gas development spending needs to ramp up by around 20% to meet future demand growth and sustain production into the 2020s, with only U.S. tight oil supply from the Permian Basin looking like a sure thing, Wood Mackenzie said Wednesday.
An essential piece of nearly every Big Oil (and natural gas) major in the world today is the Lower 48, which is offering unprecedented scale, strong returns and as important, investment flexibility, according to Wood Mackenzie Ltd.
Up to 200 oil and gas projects worldwide could be approved by year’s end, lifted by a resurgence in offshore activity and better execution, analyst teams said this week.