Rio Grande LNG Cuts Deal with ConocoPhillips, FID Comes Next
We have a second “producer does a deal to buy (not sell) LNG” story today. ConocoPhillips, a huge oil-focused driller, announced a deal to buy 1.0 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from the Rio Grande LNG project. How does this news tie into the Marcellus/Utica? It doesn’t do so directly, but it does so indirectly. First, this deal shows that EQT is not the only driller to move into the role of LNG trader. Others are now doing it, too. A trend? Second, EQT signed its own deal with Rio Grande for 1.0 MTPA of LNG just last week (see EQT Announces Deal to *Buy* LNG from Rio Grande LNG Train 5). Because of these two deals (EQT and ConocoPhillips), Rio Grande announced it now has enough commitments to move forward with a final investment decision (FID) to build the project. Read More “Rio Grande LNG Cuts Deal with ConocoPhillips, FID Comes Next”
The 
A coalition of major oil companies is asking the U.S. Supreme Court to rule on a key aspect of numerous ongoing nationwide lawsuits filed by cities, counties, and states. The lawsuits by multiple “blue” states and cities accuse Big Oil companies of deceiving the public about their role in causing mythical manmade global warming. The companies being targeted are the biggest of the big, with deep pockets. It’s nothing more than elaborate shakedown. Sunoco, ExxonMobil, Chevron, Marathon Petroleum, ConocoPhillips, Phillips 66, and others have asked the Supremes to intervene in a climate case filed against them by the City and County of Honolulu. The case serves as an important precedent for a number of other cases.
What can we say? Once again, the Democrat Party is trying to demonize fossil fuels and is going after “Big Oil,” proposing insanely high new taxes on a handful of oil companies because, for a single year (2022), they have actually made some money. All money and profits belong to the government in the left’s twisted worldview. A cabal of seven Senators led by Sen. Robert Menendez from New Jersey has launched this latest attack against our industry.
The First Amendment of the U.S. Constitution says: “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.” New Jersey is attempting to abridge the freedom of speech for Exxon Mobil, Shell Oil, Chevron, BP, ConocoPhillips, and the American Petroleum Institute (API). NJ has sued those entities claiming they knew that the products they manufacture and promote (oil and gas) have caused global warming and that these entities have lied, and continue to lie, about knowing. NJ wants to muzzle the right of the API and Exxon, et al., to freely defend themselves and stick up for fossil energy, claiming to do so endangers the public and harms the residents of NJ. It’s the most outlandish thing you’ve ever heard.
The CERAWeek conference was held in Houston, Texas all of last week. We’re still analyzing important news from the event. The CEOs of major drillers and midstream companies were there, as were heads of government agencies (like Jennifer Granholm, Biden’s incompetent Secretary of Energy). For example, we spotted a report from a session where the heads of three drillers, Pioneer Natural Resources, ConocoPhillips, and Chesapeake Energy, shared their insights on what lies ahead for 2022 and 2023. The panel provided insight into how and why growth (new drilling, more production) is being limited in U.S. shale plays, including in the Marcellus/Utica.
Who are the biggest natural gas sellers in the U.S.? You might be surprised to learn that the biggest *sellers* are not necessarily the biggest *producers* of natural gas. Oh, you might recognize some of the names of the top sellers (BP, Shell, ConocoPhillips). But others might be more of a mystery (Macquarie, Tenaska, Sequent, and J. Aron & Co.). Would it surprise you to learn that BP (i.e. British Petroleum) is the #1 seller of natural gas in the U.S. and has been for many years?
We sometimes run Top 10 lists for the Marcellus/Utica, or even the U.S., but what about a Top 10 list of natural gas producers in the entire world? We spotted an article on the Forbes magazine website that lists the Top 10 natgas producers for the entire world. By our count, eight of the ten have major or minor operations in the Marcellus/Utica. Cool! Here’s the list…