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  1. LNG to be marginal source of global supply, BP executive says

    BP PLC ’s Global Chief Economist Spencer Dale has forecast that the US Henry Hub will be the benchmark for global LNG prices into the future. He said US LNG will be the marginal source of global supply and therefore LNG prices are likely to be determined by prices at Henry Hub. Speaking at a luncheon in Trinidad and Tobago held to discuss the 2016 BP Statistical Review, Dale forecast that over the short term there will be an oversupply of LNG with a new train coming on stream every 9 weeks. Dale said this is likely to keep prices relatively low with Henry Hub prices averaging $3/MMbtu while prices in Europe and Asia average $1-2 higher than at Henry Hub. However, Dale said in the long run there will be an increase in LNG demand, which will balance supply and demand and lead to LNG prices taking their cue from Henry Hub. BP’s chief economist opined that global LNG supplies will continue to rise and overtake pipelines as the major source of supplying gas to the world. Dale explained that this is because LNG is more nimble than pipeline gas and can respond rapidly to market changes. He pointed to the case of the Asian market in 2011 following the Fukushima nuclear disaster in Japan, where there was a strong need for additional LNG supply, which led to higher prices. He said, “If you have a pipeline then you cannot respond. You have to keep on pumping wherever you were pumping. But if you are the captain of a ship in the ocean, then you can turn your vessel around and take that gas to the place where it is fetching the highest price.” Dale told the luncheon audience that the growth in LNG will be driven mainly by Australia and the US with the emergence of a global integrated gas market . He said the US was likely to have excess LNG capacity, which it will use to sell additional quantities of LNG into the global system as long as it can cover the variable costs. Dale said the shale revolution was here to stay and that by 2035, shale will be responsible for half the gas supply growth worldwide. He said while the US will remain king of shale, it was expected that Russia and China will also increase their gas production but from conventional sources. Dale said gas will be used increasingly to replace coal to power the future industries and provide electricity for the millions who will be lifted out of poverty in countries like India and China.

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    Fri, 16 Sep 2016

  2. Southeast Asia energy security is long-term concern, House panel told

    Southeast Asia’s long-term oil and gas security remains uncertain despite current global supply abundance and low prices, the National Bureau of Asian Research’s Energy Security Program director told a US House Foreign Affairs subcommittee.

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    Fri, 9 Sep 2016

  3. Shell’s second-quarter, first-half earnings take dive

    Royal Dutch Shell PLC reported second-quarter earnings on a current cost of supplies (CCS) basis, excluding identified items, of $1.05 billion, down from $3.76 billion in second-quarter 2015. First-half earnings on a CCS basis, also excluding identified items, totaled $2.6 billion, down from $7.5 ...

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    Thu, 28 Jul 2016

  4. GlobalData: High Asia-Pacific LNG prices could soon erode

    Although high LNG prices in the Asia-Pacific region are expected to persist in the near term, there are increasing signs they will erode as a result of rising Asia-Pacific LNG production, US exports, and the region’s diversification of energy supplies, according to a forecast from an analyst with ...

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    Thu, 15 May 2014

  1. Today’s lower prices don’t doom future US LNG exports, panel says

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    Tue, 9 Feb 2016

  2. Woodside makes takeover bid for Oil Search

    Woodside Petroleum Ltd. has made a nonbinding indicative all-scrip takeover proposal for Papua New Guinea-based explorer and producer Oil Search Ltd.

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    Tue, 8 Sep 2015

  3. Ophir Energy appoints Golar as midstream partner for floating liquefied natural gas project

    The integrated Ophir/GEPetrol/Golar project is expected to take FID during the first half of 2016 following completion of the upstream FEED study. 

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    Tue, 5 May 2015

  4. A coal-fueled strategy to reduce Europe's dependence on Russian energy imports

    EU deployment of two clean coal initiatives could achieve major progress toward its energy security and international treaty objectives by reducing dependence on Russian energy imports

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    Wed, 1 Oct 2014

  5. Market dynamics key to US LNG exports to Asia, witnesses say

    US exports of LNG to Asia are more likely to be determined by overseas market dynamics than by US government policies, witnesses told a US House Foreign Affairs Committee subcommittee on May 29.

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    Mon, 2 Jun 2014

  6. Production block enhancement plan in India from BP and RIL

    BP’s Group Chief Executive and RIL’s Chairman and Managing Director met with the Indian Minister of Petroleum and Natural Gas in Delhi.

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    Tue, 19 Feb 2013

  7. Energy news: Hawaii and U.S. Territories aim to increase fuel diversity with LNG imports

    Energy consumption in island states and territories is almost entirely petroleum-based. 

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    Tue, 19 Aug 2014

  8. Realities temper China-Russia oil, gas cooperation, expert says

    Changing markets and unanticipated transportation difficulties are making oil and gas cooperation between China and Russia harder to achieve, an expert told an Oct. 18 seminar at Johns Hopkins Universitys School for Advanced International Studies.

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    Tue, 23 Oct 2012

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