Intl LNG Importers Issue 2022 Report, Shows LNG Grew 4.5% in ’21
Most of the time, when we write about LNG (liquefied natural gas), we write about exports. In particular, U.S. exports. The International Group of Liquefied Natural Gas Importers (GIIGNL) advocates for the other end of the deal–those importing LNG. GIIGNL recently issued its 2022 annual report (full copy below). It really is quite fascinating. The report includes a list of long- and medium-term contracts (>4 years) signed in 2021–who the buyer is, who the seller is, and which countries the gas is going from and to.
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Oil and gas giant BP recently released its annual Statistical Review of World Energy–the 71st edition (full copy below). Among the interesting findings in BP’s analysis of global energy last year: Fossil fuels–coal, natural gas and oil–accounted for 82% of primary energy use worldwide last year, down from 83% in 2019 and 85% five years ago. The report doesn’t disclose what percentage of world energy use comes from so-called renewables, wind and solar. We suspect it remains at around 3-4% as in years past. Meaning the legacy media narrative of renewables saving the world is once again exposed as horse manure.
Shale energy mergers and acquisitions (M&A) have been quite active for the first half of 2022. According to powerhouse energy data company Enverus, the first quarter saw $14.7 billion worth of M&As. The second quarter saw $12 billion in M&As. However, almost all of it happened outside of the Marcellus/Utica. There was $2.8 billion worth of M&A in the M-U during 1Q22, and $0 in 2Q22. One of the main reasons our play hasn’t seen more M&A? Lack of pipelines to move natural gas out of the northeast.
Some on the left (not all) get starry-eyed about the potential future of using hydrogen as the world’s key energy source. They believe hydrogen can and should replace both oil and natural gas. Hydrogen as a fuel source got off on a bad foot with the 
There’s something of a mystery brewing–something nobody seems to be able to explain. Since January, the U.S. rig count has added 150 rigs–hitting the highest level of rigs active in the field since late 2019. In addition, new well counts are up, and more completions are happening. More rigs and more wells getting drilled and completed. Yet natural gas production this summer has evened out and is not increasing. Why?
It has been a wild ride for LNG over the past few years. From record low prices for LNG to record high prices. From not being able to give it away to not being able to produce enough. Earlier this month, the International Gas Union (IGU) released its 13th annual 2022 World LNG Report–the world’s most comprehensive public source of information on key developments and trends in the LNG sector (full copy below). Global LNG trade grew by 4.5% last year, reaching an all-time high of 372.3 MT. A strong post-pandemic recovery resulted in a surge in LNG imports, even though the annual growth rate of 4.5% remains far from pre-COVID-19 levels of 13.0% in 2019. We suspect this year’s growth rate (which will be reflected in next year’s report) may swing back to pre-COVID levels.
In the most recent U.S. Energy Information Administration (EIA) Short-Term Energy Outlook (STEO), the EIA predicted that by the end of this year, the United States will produce an average of 96.2 billion cubic feet per day (Bcf/d) of natural gas (see 
The number crunchers at the U.S. Energy Information Administration once again overestimated natural gas production in the Marcellus/Utica in the agency’s monthly Drilling Productivity Report (DPR). Last month the EIA predicted total production in the Marcellus/Utica region (which they call Appalachia in the report) would be 35.39 billion cubic feet per day (Bcf/d) during July. In the monthly DPR issued yesterday, EIA revised the July number down to 35.12 Bcf/d. Not a huge difference. It translates to 270 million cubic feet per day (MMcf/d) less in production–roughly 1/4 Bcf/d.
Each month the U.S. Energy Information Administration (EIA) issues a monthly Short-Term Energy Outlook (STEO). In May, the STEO made the startling prediction that the average Henry Hub price for natural gas (the national benchmark) would average $8.59 for the entire second half of this year (see 
In 2012, fossil fuels accounted for roughly 82% of total U.S. energy consumption. We have seen an incredibly aggressive pro-renewable push since then, with countries (including the U.S.) pledging to hit net-zero emissions by 2050 as part of the 2015 Paris Agreement. Not a day goes by without an article in Big Media about renewables like wind and solar taking over “any day now.” Fossil fuels are passe, the past, almost gone, on the way out, killing the planet, etc. etc. And yet, renewables ARE NOT taking over. According to the U.S. Energy Information Administration (EIA), fossil fuels accounted for 79% of total U.S. energy consumption in 2021–a drop of 3% in 10 years.
Wow, have the standards at Harvard University slipped! It used to be that Harvard was known for academic rigor–thoroughness and accuracy. Those days are long gone. Now Harvard is controlled by leftists who succumb to groupthink and political ideology instead of the scientific method. Case in point: Harvard recently published a study in Environmental Science & Technology that claims natural gas used for powering household stoves, furnaces, and water heaters “may contain” levels of “cancer-linked compounds” that are “toxic to residents when leaked.” In other words, the left has embarked on a mission to convince you that using natural gas will give you cancer. HORSE MANURE!
Using data from several government agencies, the Gas and Oil Association of West Virginia, Inc. (GO-WV) published its annual Gas Facts report earlier this week. Natural gas production in WV increased 6% to approximately 2.7 trillion cubic feet (Tcf) in 2021. The increase in production helped drive a 10% increase in state severance and local property taxes collected.
There’s no way for the Bidenistas to put lipstick on this pig–but they tried anyway. The Biden administration’s Dept. of Energy published its annual U.S. Energy and Employment Report (USEER) yesterday. The report shows HUGE fossil fuel industry job losses in 2021. The report finds the fuels technology sector experienced job losses totaling 29,271 jobs in 2021, down 3.1% from 2020, with the majority of losses coming from the fossil fuel industry.
Each quarter the Federal Reserve Bank of Dallas conducts an energy survey of exploration and production (E&P) and oilfield services (OFS) firms across the Federal Reserve’s three-state Eleventh District, including Texas, New Mexico, and Louisiana. The latest survey, for 2Q22, included 85 E&P firms and 52 OFS companies. Respondents said they expect a Henry Hub natural gas price of $7.55/MMBtu and a West Texas Intermediate (WTI) oil price of $108/bbl by the end of 2022. The wisdom of this particular crowd is probably about as reliable a prediction as you can get with respect to O&G prices.