Intl LNG Shipping Co. Provides Update on Worldwide LNG Trade
Flex LNG is a shipping company based in Bermuda focused on the growing market for Liquefied Natural Gas (LNG). Flex’s fleet consists of thirteen state-of-the-art LNG carriers that travel the world. If anyone is tuned in to what’s happening with the price of natural gas and how that price affects LNG, it’s Flex. CEO Øystein Kalleklev delivered a presentation at a natural gas seminar hosted by Danske Bank on Tuesday. Flex conveniently offered a copy of the presentation for download (see it below). Although the presentation comes with no accompanying commentary, it has some fascinating slides loaded with great information, including a slide listing the reasons for the cause of the current energy crisis that’s led to a spike in natural gas prices.
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Six of the seven largest shale plays in the U.S. will see a slight increase in both natural gas and oil production in November according to the latest monthly Drilling Productivity Report (DPR) issued by the U.S. Energy Information Administration (EIA). The Marcellus/Utica, collectively lumped together as “Appalachia” in the report, will see an estimated increase of 41 MMcf/d (million cubic feet per day) in production next month–something of a disappointment. The M-U’s chief rival, the Haynesville, will see explosive growth, an increase of 135 MMcf/d. The oil-based Permian will see an increase in natgas production of 78 MMcf/d.
Each month the U.S. Energy Information Administration (EIA) issues a Short-Term Energy Outlook (STEO). In the latest STEO update, released two days ago, EIA predicts the Henry Hub spot price will average $5.80/MMBtu in 4Q21, which is $1.80/MMBtu higher than EIA forecasted in their September STEO (see 
Well permits, long tracked by MDN, are a leading indicator of drilling activity. In Pennsylvania, four of the state’s five biggest producers–EQT, Chesapeake Energy, Range Resources, and Southwestern Energy–have kept the pace of drilling new wells “subdued” according to an analysis by S&P Global Market Intelligence. The top five producers in PA accounted for only 51% of the permits issued in September, down from 53% in August. Normally, the top five drillers account for roughly two-thirds of permits issued each month.
The Natural Gas Supply Association (NGSA) released its Annual Winter Outlook yesterday. In comments made during a presentation to the press, NGSA Chairman David Attwood said he expects U.S. shale producers to come off the sidelines in response to the highest natural gas prices in nearly a decade. That’s good news. “I firmly believe the market works,” Attwood said in response to a question made by the press during the presentation. “There is no doubt the market is giving strong signals for production to increase. That supply is there and will come and meet the demand,” added Attwood.
Even the Joe Biden-controlled U.S. Energy Information Administration (EIA), which remains our favorite government agency although it’s now tainted with Bidenistas, can’t cover up the truth. The truth is this: By 2050 the world’s energy supplies will still mostly come from fossil fuels. The latest annual International Energy Outlook for 2021 issued by the EIA yesterday shows by 2050 so-called renewables (solar, wind, hydro) will provide around 27% of the world’s energy, nuclear another 3%, and the rest–coal, oil, and natural gas–will provide 70% of the world’s energy. Can we once and for all drop this idiotic meme that “renewables” are about to replace fossil fuels “in the next few years”?
Brian Anderson is director of the National Energy Technology Laboratory (NETL) and now the head of the Biden administration’s Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization, an effort to kill the use of fossil fuels (see 
Although the price of natural gas has rocketed this year and cash flows for Marcellus/Utica drillers have ballooned, showering drillers with plenty of free cash flow, M-U drillers are spending less (19% less) on capital expenditures than they did in 2020. Production in the M-U is up slightly by 4% so far in 2021 vs. 2020. The experts at RBN Energy have dived into this latest twist in the shale story to help explain what’s going on and why.
Sometimes it seems like a full-time job running around and setting the record straight, correcting the outright lies and half-truths spun by the wacko environmental left. For example, shoveling up the messes made by the Ohio River Valley Institute (ORVI), a far-left, hyper-partisan, nonprofit organization. Last month ORVI peddled falsehoods at a hearing convened by the U.S. Department of Energy’s Office of Fossil Energy and Carbon Management which is conducting a study on the prospects for a petrochemical industry in the Marcellus/Utica (see 
Here’s a paradox for you that we can’t explain. Last week we reported the latest U.S. Energy Information Administration (EIA) Short-Term Energy Outlook (STEO) predicts natural gas production in the U.S. will hit an all-time high in 2022 (see