MOSCOW, RUSSIA – OCTOBER 03: IHS Markit Vice-Chairman Daniel Yergin speaks at the time of “Sustaining … [+]
Anadolu Group through Getty Images
Let’s start this update with a couple of book recommendations. Many readers, along with Shale Magazine publisher Kym Bolado, know that I co – host a weekly radio program focusing on oil and gas called In the Radio Oil Patch, which is rising across the state of Texas. In the last few weeks we have interviewed the authors of two new books that should be a must read for anyone with an interest in the oil and gas industry and the industry. shale in the United States.
The first well-known author is: Daniel Yergin, the Vice-Charman at IHS Markit
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We interviewed Mr Yergin on the November 15 edition of In the Oil Patch, focusing on his latest book, entitled “The New Map: Energy, Climate, and Clash of Nations.” You can listen to that podcast of that interview at this link. All of his books are highly informative and interesting books full of great sources of useful information. Mr. Yergin is a very talented writer who is able to showcase this wealth of information in a novel – like story that will keep you interested and make it difficult to put the books down. If you want to find out where the world is headed where there is a link between energy and climate, “The New Map” really a must read.
The same is true of another new book with the title The Shale Controversy with Dr. Ian Dexter Palmer. We interviewed Dr. Palmer late this week for a radio broadcast later this month, so the podcast of this particular program is not yet available. Our first one-hour interview with Dr. Palmer was so compelling that we have scheduled a follow-up interview by next week so we can delve more depth into his book.
As you can read at his media page, Dr. Palmer holds a PhD in Physics and spent 18 years as a scientist with an MP, and another 12 years later as a consultant. He told Kym and me that he decided to write “The Shale Controversy” now to try and tell all aspects of the story in a way that is scientifically correct and scientific. In my opinion, it has achieved that goal in a balanced and comprehensive way that no one has been able to achieve before. This is another must-read book for anyone who wants to experience the truth – both positive and negative – about fracking and the coal industry in the United States and around the world.
Even better, Forbes has now added Dr. Palmer to its growing line of excellent energy donors. Readers here will therefore now have the opportunity to benefit from his vast source of knowledge on all aspects of the subject on a regular basis.
Sachs Goldman
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Goldman is seeing a sharp rise in prices for U.S. domestic gas sales, reiterating its expectations for this summer’s NYMEX index price of $ 3.25 per MMBTU, well above the trade level His Friday of $ 2.75. If Goldman is right, things look much brighter for U.S. domestic natural gas producers and LNG exporters.
The U.S. stone has recovered from a nice recovery in recent months, but they may soon have problems due to a lack of frac sand. That is the judgment of KPLER, an international commodity information company, in a new report published this week. KPLER says “Many sand miners fell or were under-invested due to low prices,” and concludes that, along with the recent rapid rise in U.S. domestic rig counts, ‘lead to’ unavoidable “supply chain disruptions that hamper the potential for further supply chain in the shale sector.
Oil production from U.S. shale formations fell 20% in 2020, ending the year at around 7.44 million barrels of oil per day. KPLER believes that frac sand shortages and other technical constraints will prevent a return to previous production levels over the next 18 months, even with an oil price of $ 70 per barrel.
While the Baker Hughes rig account rose again this week with 13 crans – its 8th weekly direct increase – it is important to note that the total number of domestic rigs is less than half the level a year ago. It will take several more weeks of ups and downs before the shale industry again drills new wells enough to alleviate the steep declines among those drilled, broken and finished.
U.S. crude oil exports have maintained high levels despite reductions in domestic supply and international demand for crude. KPLER says U.S. 2020 carbon levels grew 11.9% compared to a year ago despite lower global demand. ”
Preventing unexpected government intervention in the production and flow of oil out of the Permian Basin, we should expect that U.S. exports of shale shells will continue to rise throughout 2021 and beyond. That is certainly the expectation of Port Corpus Christi (Port CC) and its facility operators, which will continue to expand the Port ‘s capacity at a rapid pace.
In the last few months, we have announced or completed the following extensions at Port CC:
- Port CC has announced the latest lease and discount deals for the planned Bluewater Texas project, a deepwater, crude oil export center, in which Trafigura has formed a 50/50 joint venture with Phillips 66
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- In late December, Buckeye Partners announced that crude oil export operations have begun at the second deepwater dock at its Gateway South Texas facility, a building built at the mouth of the Corpus Christi Long Channel in Ingleside, Texas. The Buckeye facility can fully load Suez Max tankers, and load VLCCs to about half their full capacity.
- And, where LNG exports are a concern, Cheniere Energy loaded its first cargo from the third liquefaction train of its Corpus Christi LNG plant in September.
Port CC facility operators have also significantly expanded their storage operations over the past two years, and Port CC now operates as the second largest crude oil storage facility in the country, behind Cushing, Oklahoma.
While the landscape for the U.S. stone is filled with potential obstacles, including the potential political attack from the Biden / Harris Administration that coming in, there are reasons to be optimistic as the new year jumps with higher crude prices and rig count rates than anyone expected in just a few months. back. So much is still dependent on the OPEC + configuration being interdependent, but charcoal operators are certainly able to breathe a little easier than they could until October.