EOG Resources Inc. CEO Bill Thomas expressed confidence Friday in the company’s ability to withstand a sustained decline in commodity prices, even as the coronavirus roiled financial markets and put downward pressure on demand forecasts for oil and natural gas.
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Tellurian Inc. on Monday said it is feeling the squeeze of a global natural gas glut and has announced a cut in corporate spending as it works to sanction a massive liquefied natural gas (LNG) export terminal in Louisiana.
The global natural gas and oil industry, already reeling from a lack of demand and low commodity prices, is now taking a hit on the conference schedule because of the spreading coronavirus, with IHS Markit announcing Sunday it is canceling CERAWeek, the premier energy conference that draws thousands to Houston every year.
With March forecasts pointing to another possible record warm month, and natural gas storage inventories heading toward a robust 1.9 Tcf for the end of winter, natural gas March bidweek prices plunged further below the $2/MMBtu threshold. NGI’s March Bidweek National Avg. dropped 28 cents from February bidweek to $1.530*, which is also a $1.415 discount to the March 2019 Bidweek average.
Energy and stock markets steadied themselves Monday after last week’s swoon over Covid-19 fears, and natural gas futures followed the broader trend, rebounding decisively despite a lack of weather-driven demand in the forecast. The April Nymex contract added 7.2 cents to settle at $1.756/MMBtu, while May picked up 6.5 cents to $1.797.
Against a backdrop of global economic anxiety over the coronavirus outbreak, the prospect of an early spring offered natural gas futures bulls no quarter in early trading Friday. Following a steep 8.5-cent sell-off in the previous session, the April Nymex contract was down another 7.6 cents to $1.676/MMBtu shortly after 8:30 a.m. ET.
Amid an oversupplied market and demand uncertainty made worse by the coronavirus outbreak, Continental Resources Inc. is trimming its near-term guidance for capital expenditures (capex) and production growth, Executive Chairman Harold Hamm said Thursday.
U.S. liquefied natural gas (LNG) terminals are unlikely to shut in significant amounts of the super-chilled fuel this year, but as the export market confronts historically low prices and a global supply glut, it’s not a possibility that can be easily ruled out or even defined.
Global exploration and production (E&P) investments may take a substantial hit this year because of the coronavirus, as staffing and supply shortages at key construction yards in Asia and beyond delay project deliveries by up to a year.
After being driven sharply lower by an increasingly mild weather forecast, natural gas futures sustained even more damage on Friday as global fears of the coronavirus continued to hammer stocks and energy commodities. The April Nymex gas futures contract plunged to an intraday low of $1.642/MMBtu before going on to settle at $1.684, down 6.8 cents from Thursday’s close. May also fell 6.8 cents to land at $1.732.