IGU’s 2020 World LNG Report – World LNG Trade up 13% Last Year

In contrast to today’s story about LNG being on the ropes (see US LNG Export Cargoes Canceled as Coronavirus Destroys Demand), the International Gas Union (IGU) published its annual LNG report yesterday. The report highlights the material changes in the global LNG industry happening in 2019. The worldwide LNG trade increased by 13% to a total of 354.7 MT (million tons). The Marcellus/Utica gets a prominent shoutout in the report.
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“End Game” – America’s Shale Oil Industry Begins to Shut Down

In the end, physics and not government intervention is forcing the end of large amounts of shale oil production across the U.S. With a forced shutdown of the world’s economy (including the U.S. economy) due to the coronavirus pandemic, some 30 million barrels per day of oil the world would have used (out of a previous 100 million bpd) has disappeared. Demand has dried up. Yes, the oil apocalypse is here. Welcome to Hades. Some of our favorite oil superheroes will not make it out alive.
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Vallourec Announces Layoffs for One-Third of its U.S. Workers

Vallourec, headquartered in Boulogne-Billancourt, France, manufactures steel pipes used in the oil and gas industry. The company employs some 19,000 people in 20 countries, including the U.S. In fact, Vallourec employs more than 750 at three Youngstown, Ohio units: Vallourec Star, VAM USA and Vallourec USA Corp. Yesterday Vallourec corporate headquarters announced it will reduce (layoff/eliminate) some 900 positions “across all plants as well as support functions.” That number, 900, represents over one-third of Vallourec’s total workforce and contractor positions in North America. The announcement implies all 900 of the positions being eliminated will happen in North America.
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Patterson-UTI Lowers 2020 Spending by 60%, TechnipFMC Down 30%

Both Patterson-UTI Energy and TechnipFMC are big oilfield services (OFS) companies–drilling, fracking, completions, etc. Both have operations in the Marcellus/Utica region, as well as operations in other shale plays (TechnipFMC has ops in other countries). Both companies run in the same pack with much larger (but similar) companies like Schlumberger, Halliburton and Baker Hughes. Because of their presence in the M-U, it caught our attention that both Patterson and TechnipFMC announced major cuts to their capital expenditure budgets for the balance of 2020. Patterson is axing more money from an already axed budget–now 60% lower than what they spent in 2019. TechnipFMC is trimming 30% from their budget this year over last.
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Oil Heading for $20/Barrel; Price in Freefall; Uncharted Territory?

In early January, the average price for a barrel of oil was $63. Yesterday the price closed at $28.70. Word on the street is that the price may go as low as $20/barrel, soon, and stay there for a while. Why? Because the Saudis and Russians have oil-pumping fever. They’re pumping as much oil as fast as they can. And that’s producing a global surplus of oil chasing buyers who don’t want it. According to IHS Markit VP and head of oil markets Jim Burkhard, “The last time that there was a global surplus of this magnitude was never. Prior to this the largest six-month global surplus this century was 360 million barrels. What is coming will be twice that or more.” The price of oil has crashed–and unless the Saudis and Russians let up, the price will stay crashed for some time to come.
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Shale Energy Stories of Interest: Mon, Mar 16, 2020

MARCELLUS/UTICA REGION: Biggest weekly gainer in S&P 500 is Cabot Oil & Gas!; Susquehanna County has more than half of top producing PA gas wells!; OTHER U.S. REGIONS: Developing bottlenecks in the Louisiana gas market; NATIONAL: Oil price recovery not likely until 2022; recent pullbacks ‘just the beginning’; E&Ps, OFS operators cutting capex and salaries as Covid-19 reshapes markets; Four more producers line up to slash capex, activity in wake of low oil prices; Can shale survive another bust?; It’s not Armageddon for America’s oil and gas industry; INTERNATIONAL: Another specter rises over LNG as European demand seen threatened by coronavirus; Saudi Arabia-Russia oil price feud hits U.S. economy hard.
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Vultures Circle: Which Shale Companies Will Survive Price Crash?

We’re already beginning to see articles (complete with company names) speculating on which shale drillers will weather the current oil price war between Saudi Arabia and Russia, and which will go under in the next 12 months. It’s like vultures are circling. There’s little doubt some shale companies will not make it. The question becomes, who buys those that go under? We certainly hope it’s not a foreign entity from Russia or Saudi Arabia. That would be insult added to injury.
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Shale Energy Stories of Interest: Tue, Mar 10, 2020

OTHER U.S. REGIONS: Tellurian makes managements appointments; Columbia gas pleads guilty over Mass. pipeline blasts; NATIONAL: Climate change lawsuits collapsing like dominoes; Energy valuations: Freefall into bankruptcy or is this time different?; There are no winners in oil market’s price war; Brace yourself for another 33% drop in the price of crude oil; White House can lend U.S. shale a helping M&A hand; INTERNATIONAL: The coronavirus is an economic pandemic, panicking markets and slowing growth.
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Shale Energy Stories of Interest: Wed, Feb 26, 2020

MARCELLUS/UTICA REGION: Pa. House Speaker Mike Turzai: Banning fracking would destroy Pennsylvania’s economy; NATIONAL: U.S. crude oil production increases; imports remain strong to support refinery operations; Michael Bloomberg’s climate change plan would wreak economic mayhem; INTERNATIONAL: Russia’s Novatek celebrates another Yamal LNG milestone.
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Shale Energy Stories of Interest: Mon, Feb 10, 2020

MARCELLUS/UTICA REGION: Ohio shale gas permits slow in the face weak gas prices; Protect PT to host workshop against fracking; Chesapeake Energy requests waiver on setback to drill well in Bradford County; Why Pa.’s public pension funds have millions of dollars of your money tied up in the natural gas industry; NATIONAL: Could the flight shaming movement take off in the U.S.? JetBlue thinks so.; Alternative energy can’t replace hydrocarbons; Unlike in Europe, the US approach to climate change is actually working; A climate blacklist that works: “It should make her unhirable in academia”; INTERNATIONAL: Power and natural gas roil energy shift: what to know at E-World; Oil prices could fall much further as Russia refuses additional production cuts.
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Shale Energy Stories of Interest: Fri, Feb 7, 2020

MARCELLUS/UTICA REGION: Appalachia, Permian drop by five rigs each in biggest play changes; Fake news is fracking endemic in environmentalism; OTHER U.S. REGIONS: New olefins cracker starts service in Louisiana; NATIONAL: Natural gas: capital retreat to send prices 50% higher; U.S. natural gas prices dip to four-year lows; Total’s U.S. portfolio said ready to drive global LNG sales growth; Energy Capital pauses pipeline deals on widening shale despair; Liberty Oilfield deploys new frac fleet, plans new build; Exxon: shale production growth is through the roof, and it’s just getting started; INTERNATIONAL: U.S. LNG export arb said ‘nearly’ shut as coronavirus curbs Asian buying; Failed OPEC response to coronavirus shows Russia is in charge; China reneges on commodity deals, worsens global trade chaos.
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Shale Energy Stories of Interest: Tue, Feb 4, 2020

MARCELLUS/UTICA REGION: Philly refinery’s former owner, Sunoco, files formal objection ahead of bankruptcy sale; Sanders’ proposed fracking ban would cost him Pennsylvania and probably the election; Veolia Water Technologies may close Moon Township office; Cabot to provide lunch at Susquehanna County Ag Day; OTHER U.S. REGIONS: Kean, Thompson slam Gov. Murphy’s energy master plan to shut off natural gas by 2050; Flurry of changes continue in Texas Gulf Coast gas markets; NATIONAL: U.S. crude oil and natural gas production increased in 2018, with 10% fewer wells; Elizabeth Warren’s gas royalties; US natural gas prices continue freefall this winter; Natural gas waits for spring; INTERNATIONAL: Natural gas won’t decarbonize shipping, but the fuel is here to stay; Cruise ships switching fuel to cleaner liquefied natural gas.
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Shale Energy Stories of Interest: Thu, Dec 19, 2019

MARCELLUS/UTICA REGION: PA Sen. John Yudichak named to Senate Environmental Committee; OTHER U.S. REGIONS: Buyer mulling stake covering 4 million mt/y of Driftwood LNG supply; Natural gas companies form PAC to fight CMP’s proposed transmission project; Rising Bakken gas production displacing Western Canadian gas on pipes; NATIONAL: Shale revolution ensuring America’s energy security, says GEI; A decade in which fracking rocked the oil world.
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Shale Energy Stories of Interest: Wed, Dec 18, 2019

MARCELLUS/UTICA REGION: A natural gas blowout in Ohio released more methane than many countries do in an entire year; Natural gas initiative shifts to statewide action; Oil and Gas industry partners with first responders; NATIONAL: Is Wall Street turning its back on fossil fuels?; Aly Energy Services, Inc. goes dark, no longer filing SEC updates; Fight over flaring: Industry, enviros contrasting accounts over burning excess natural gas; Michael Moore & Me (video); INTERNATIONAL: Ontario expanding natural gas to more communities across Ontario.
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Misnamed Young “Conservatives” for Carbon Dividends Wants CO2 Tax

If there is one defining characteristic of a truly conservative Republican, it is that he or she does not like higher taxes. On anything. Conservatives know that higher taxes equal less freedom of individual choice. And higher taxes feed (and perpetuate) the bureaucratic Big Government machine. A lower taxes philosophy is baked into the true conservative’s DNA. Yet a group of brainwashed college students professing to be Republican and conservative (they’re neither) has just launched a group called Young Conservatives for Carbon Dividends to lobby for an insane carbon tax.
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Shale Energy Stories of Interest: Fri, Dec 6, 2019

MARCELLUS/UTICA REGION: Future of oil and gas in Ohio Valley looks bright; NATIONAL: Analysis: US oil, gas rig count falls by 4 to 691, Permian totals slide; N. American shale primed for growth despite possible oil price declines; Gas lobby group goes on attack to halt move to ban new hook-ups; Natural gas outpaced renewable energy in reducing greenhouse gases; Moore’s Law misapplied (video); INTERNATIONAL: As Lopez Obrador focuses on oil, U.S. natural gas exports to Mexico soar; Europe was favored destination for US LNG in November amid activity ramp-up.
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