OGJ - CSIS speakers expect stable oil supplies, unstable prices in 2019

February 22, 2019 – Oil & Gas Journal

CSIS speakers expect stable oil supplies, unstable prices in 2019

By Nick Snow

Stable supplies and unstable prices will characterize global oil markets during 2019, speakers generally agreed during a Feb. 21 discussion at the Center for Strategic and International Studies.

Read the full article and see the video here: https://www.ogj.com/articles/2019/02/csis-speakers-expect-stable-oil-supplies-unstable-prices-in-2019.html

Rusty Braziel, president and principal energy market consultant at RBN Energy LLC, said, “There’s going to be a lot of crude coming to US export locations. The question is how it’s going to get there. About 10 bcfd of gas is going to export markets, about 12% of US production. LNG export capacity is expected to grow in 2019, and exports’ gas production share will increase. If you look just at propane, 55% of total propane capacity is being exported—to the point that weather in Europe matters more to the US propane market than weather in Minnesota.”

Braziel suggested that US production, excluding gas liquids, could reach more than 16 million b/d by 2024. “All that production needs to go someplace, and fortunately we’re building a lot of pipelines, particularly out of the Permian basin,” he said. “Everybody and their dog is coming up with another pipeline project, and they’re all going to the Gulf Coast. There also will be pipelines from the Cushing area and the Rockies totaling 2.2 million b/d, all targeting the Gulf Coast export market.”