Given that cleaner, flexible, affordable, and reliable natural gas is the go-to fuel. It is because it cut greenhouse gas emissions and back up intermittent wind and solar power. The Liquefied Natural Gas Market is the fastest-growing commodity market in the world. The reality is that there are about 100 things you need to know about LNG, but let’s just stick to nine of them.

In 2018, the LNG market grew by 8% with deliveries at 314 million tons (MT). This was nearly a 30% rise from 2015 and over a tripling since 2000. There was 868 MTPA (per annum) of total regasification capacity but only 406 MTPA of total liquefaction capacity. LNG now accounts for ~14% of gas use globally.

And there is currently some $1.4 trillion in LNG development across the globe, with the U.S., Canada, Russia, and Australia leading. This makes perfect sense: yearly global demand is modeled to soar 3-7% for decades (those that foresee any regression for LNG base their assumptions on unrealistic Herculean forecasts for wind and solar power).

Although declining, long-term, oil-based contracts still dominate, at 68% of LNG contracts. Around 25% of all LNG was sold on a spot basis, with another 7% short-term (i.e., under four years). The emerging U.S. export market in particular is adding a critical flexible contract style to the market – more liquidity and shorter-term options enhancing the business. The U.S. is bringing LNG that lacks the “destination clauses” that have long restricted the resale of unneeded supply. It’s the U.S. that will evolve gas from a regional product into a global commodity sold like petroleum.

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Source: Forbes.com

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Supports about 17 Percent of Jobs

The booming oil and gas industry in Texas now supports about 17 percent of jobs in the state, either directly or indirectly, according to a new economic analysis.

The oil and gas industry in the state of Texas is a significant contributor to the overall economy, bringing in a staggering $557.4 billion in total outlays each year. This industry not only generates immense economic benefits but also plays a crucial role in supporting personal income, amounting to $120.6 billion annually. These figures highlight the magnitude of the industry’s impact, as it provides employment opportunities for nearly 2 million individuals, accounting for approximately one out of every six jobs in the state.

Extend Far Beyond

The ripple effects of the oil and gas industry extend far beyond its direct operations. It fuels a vast network of related businesses, ranging from equipment manufacturers to service providers, creating a robust supply chain that further bolsters the state’s economy. This interconnected web of economic activity is a key driver of growth and prosperity, attracting investment and fostering innovation throughout various sectors. Furthermore, the substantial personal income generated by the industry not only benefits individuals directly employed in the sector but also circulates through the local economy, contributing to consumer spending, tax revenues, and overall economic stability.

In conclusion, the oil and gas industry in Texas is undeniably a vital pillar of the state’s economy, generating staggering economic benefits, supporting personal income, and providing employment opportunities for a significant portion of the workforce. Its far-reaching impacts extend beyond the industry itself, contributing to the growth and prosperity of related businesses and stimulating economic activity across various sectors. As such, it is crucial to recognize and leverage the positive contributions of this industry in order to sustain and enhance the state’s overall economic well-being.

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Source: Starlocalmedia.com

 

 

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Oil is back over $60 a barrel!

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Source: Bloomberg

Gas Price Hike Have to be Accepted

“If you truly want economic development, it’ll [gas price hike] have to be accepted,” The Prime Minister Sheikh Hasina said.

Bangladesh has achieved 8.1 percent GDP growth, said Sheikh Hasina adding. “It was possible as we paid enough attention to energy, and we’ve been able to boost power generation, too. But, we’re to import gas, and the import cost of LNG is huge. Energy is most important for economic development.”

India Had Wanted to Take Gas from Myanmar

In 2004-2005, India had wanted to take gas from Myanmar installing pipeline through Bangladesh, but Khaleda Zia government didn’t allow it.

Had she (Sheikh Hasina) been in the power at that time, she would have allowed the pipeline ensuring Bangladesh’s share from the gas, Hasina said.

During her five-day official visit to China, Prime Minister Sheikh Hasina engaged in several productive discussions and meetings with Chinese officials. One of the key topics of conversation was Bangladesh’s energy sector and the country’s current dependence on liquefied natural gas (LNG) imports. In a meeting with her Chinese counterparts, Prime Minister Hasina highlighted the missed opportunity for Bangladesh to utilize its natural resources for economic development, which could have potentially reduced the need for LNG imports.

The Country Would Not Be in its Current Position

Prime Minister Hasina expressed her belief. That if Bangladesh had effectively harnessed its own share of resources and invested in economic development. The country would not be in its current position of relying heavily on LNG imports. She emphasized the importance of strategic planning and utilizing available resources. To drive economic growth and reduce dependency on external sources. By adopting a proactive approach towards resource management and investment. Bangladesh could have potentially diversified its energy sources and established a more sustainable and self-sufficient energy sector.

Returning home from her visit to China. Prime Minister Hasina’s remarks shed light on the significant role. That effective resource utilization and economic development play in a country’s energy security. Her statements highlight the missed opportunity. For Bangladesh in not fully capitalizing on its own natural resources, and the subsequent consequences of relying on LNG imports. This serves as a valuable lesson for policymakers, urging them to prioritize comprehensive resource management strategies and long-term economic development plans to ensure energy self-sufficiency and reduce dependence on external sources in the future.

 

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Source: TheDailyStar.net

 

 

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12 Million Barrels

WASHINGTON – U.S. oil production surpassed 12 million barrels a day in April, further extending the nation’s record output during the fracking boom, the U.S. EIA reported Monday.

“The U.S. onshore crude oil production increase is driven mainly by developing low permeability (tight) formations using horizontal drilling and hydraulic fracturing. EIA estimates that crude oil production from tight formations in April 2019 reached 7.4 million b/d, or 61% of the U.S. total,” the report read.

Texas alone produced almost 5 million barrels a day in April, up more than 25 percent from the beginning of 2018. And much of that growth has come in the Permian Basin, an aged oil field revived by new drilling technology.

A Remarkable Month-Over-Month Growth Rate

Despite facing pipeline capacity constraints, the Permian region managed to sustain a remarkable month-over-month growth rate averaging nearly 100,000 barrels per day throughout the majority of 2018. This impressive growth can be assign to a combination of factors, including industry efficiencies in pipeline utilization and the implementation of alternative transportation methods such as increased trucking and rail transport within the region. These strategies have enabled crude oil production in the Permian to not only continue its upward trajectory but also to meet the increasing demand for energy resources in the market.

The continued growth of the Permian region’s crude oil production is a testament to the resilience and innovation of the industry players operating in this area. Despite the challenges posed by limited pipeline capacity, stakeholders have demonstrated their ability to adapt and find alternative solutions to ensure the smooth flow of resources. By leveraging technologies and optimizing logistics, the Permian has been able to maximize its production capabilities and contribute significantly to the overall energy output of the United States. This sustained growth not only benefits the regional economy but also plays a crucial role in meeting the global demand for energy resources in an efficient and sustainable manner.

 

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Source: HoustonChronicle.com

 

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