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We Just Disagree, Part 3 - Local Issues Also at Play in Questar Pipeline Sale
Plato may have said it, Shakespeare wrote about it, and anyone who has engaged in a friendly debate about the best classic car, hunting rifle, or wristwatch knows it to be true: beauty lies in the eye of the beholder. Of course, not everyone sees value …
We're Here for a Good Time - Will Enbridge's Line 3 Replacement Narrow the WCS/WTI Spread?
Crude oil production in Western Canada has been rising steadily for most of the past decade. Unfortunately, the same cannot be said for its oil pipeline export capacity to the U.S., which has generally failed to keep pace with the increases in production. …
Way Down in the Hole - Carbon Capture and Sequestration’s Growing Role in the Energy Industry
Admittedly, the idea of capturing carbon dioxide, cooling and compressing it into a weird, neither-liquid-nor-gas state, and pumping it deep underground for permanent storage would have baffled the crude oil wildcatters and pipeline builders that created …
Up Around the Bend, Part 2 - Midstream Conundrum Threatens Gas Production Growth Long Term
Market signals are suggesting that we’re on the cusp of another midstream revival. Higher crude oil and natural gas prices are prompting producers to ramp up output, and higher production will lead to increasing midstream constraints and cratering supply …
Wake Up Call - Navigating Crude Oil, Natural Gas, and NGLs Through the Energy Transition
For all who thought an energy transition was going to be orderly, economic, or rational, the chaos of 2021 energy markets is a wake-up call. It’s not that the shift from fossil fuels to renewables is causing most of the market turmoil, but it is certainly …
Just the Two of Us - Midstreamers Joining Forces to Optimize Gathering and Processing
The U.S. oil and gas industry’s upstream sector has seen more than its share of mergers and acquisitions in the year and a half since COVID-19 put energy markets on a wild roller coaster. ConocoPhillips buying Concho Resources and then Shell’s Permian …
Go West, Part 4 - Pacific Coast LNG Export Projects Gain Traction
After a record-breaking year in which the Japan-Korea Marker topped $30/MMBtu, it looks like 2022 could finally be the year when multiple projects in the long-awaited “second wave” of North American LNG export facilities reach final investment decisions. …
Better Way, Part 3 - Who Certifies Responsibly Sourced Natural Gas?
In the past few months, there’s been a flurry of interest in certified responsibly sourced gas (RSG). RSG is natural gas — it still comes out of wells in the Marcellus, Haynesville, Permian, and other U.S. production areas. What distinguishes RSG is that …
Up Around the Bend - Midstream Conundrum Threatens Gas Production Growth Long Term
The U.S. natural gas market is primed for supply growth. The Lower 48 supply-demand balance is the most bullish it has been in years. Exports are at record levels and poised to increase with additional terminal expansions on the horizon, while …
I've Got The Power - The Challenges Facing LNG-Fueled Independent Power Projects Overseas
A major driver for global growth in natural gas use, including LNG, derives from the power-generation sector. Large Japanese utilities introduced LNG into the power fuel mix in the early 1970s. More recently, a number of utilities in other countries have …
We Just Disagree, Part 2 - Perceived Value at Heart of Dispute Over Questar Pipeline Sale
The recently announced acquisition of Questar Pipeline LLC by Southwest Gas has stirred up a hornet’s nest. Southwest sees it as a milestone moment that will allow it an increased role in the energy transition, but activist investor Carl Icahn sees it as …
How Long Can This Keep Going On - Are We Headed for $100 Crude Oil? And Then What?
Crude oil prices continued to increase this week, with WTI at Cushing closing Tuesday at $84.65/bbl, the highest level since October 13, 2014. The rise in crude since the spring of 2020 has been swift and almost relentless, interrupted only by pauses at …
Play It Again - Permian Natural Gas Markets Singing a Familiar Tune as Constraints Loom
Some things you can pretty much count on this time of year, like the end of 100-degree days in Houston, Aggies rooting against Longhorns, and the Astros in the World Series. Permian natural gas production has also been consistently higher the last few …
Better Way, Part 2 - Producing, Transporting, Liquefying, and Buying Responsibly Sourced Natural Gas
It seems that hardly a week goes by without another announcement on responsibly sourced natural gas (RSG). Either in response to rising interest among electricity generators, gas-distribution utilities, and gas-consuming industrials in procuring RSG or as …
Tangled Up in Blue - Air Products' Plan to Make Hydrogen So Blue It's Almost Green
None of us knows with any certainty how big a role hydrogen will ultimately play in helping the U.S. and the rest of the world decarbonize. Sure, some true believers are convinced H2 is the next big thing, but even they must acknowledge the economic and …
Money (That's What I Want) - E&Ps Start Hoarding Cash from Rapidly Rising Inflows
For many years, the exploration and production sector of the oil and gas business was notorious for its profligate ways. When energy prices were high and money was flowing in, many E&P companies would spend like Beyoncé. But the commodity price volatility …
E&Ps' Cash Flow Breakdown (in $ Millions) - 2Q 2021
(Note: Each column is sortable by clicking once or twice on the column title. For example, clicking on "Total" will rank the companies either low-to-high or high-to-low.) Oil-Weighted E&Ps - 2nd Quarter 2021 ($ in Millions) Company Ticker Cash Flow From …
Go West, Part 3 - Mexico's Pacific Coast LNG Export Projects Gain Traction
After years of waiting on the so-called “second wave” of North American LNG, 2022 could finally be the year that sees multiple LNG export projects reach a final investment decision (FID). Global gas fundamentals have been bullish for about a year, and …
Wake Up Call - Navigating Today's Energy Markets While Preparing for a Lower-Carbon Future
For all who thought an energy transition was going to be orderly, economic, or rational, the chaos of 2021 energy markets is a wake-up call. It’s not that the shift from fossil fuels to renewables is causing most of the market turmoil, but it is certainly …
It Don't Come Easy - The Energy Crunch, Decarbonization Goals, Forecasts, and Putin
If the ongoing global energy crunch is teaching us anything, it’s that decarbonizing the world’s economy may be even more difficult than many had figured. While a strong case can be made for reducing — or even slashing — greenhouse gas (GHG) emissions by …