The severe decline in investment in new LNG export capacity due to the price downturn that began in 2014 could precipitate supply problems in the 2020s, mirroring similar trends in the crude oil market.
Texas-based Noble Energy and Israel’s Delek Group, the two companies producing gas in Israeli waters, will ship about 64 billion cubic meters of natural gas over the next decade to Egypt’s Dolphinus Holdings.
The glut of supply could last years, threatening to keep prices low until the 2020s, but the oil majors are playing the long game, expecting the demand for gas to grow substantially over time.
While U.S. LNG will play second fiddle to pipeline gas from Russia in the European market, the mere fact that Gazprom has granted pricing concessions is a sign that Europe's LNG imports are having a significant effect.
Risks for companies operating in Argentina have fallen considerably in recent years, but the political environment could throw a wrench in energy development at any time. The mid-term elections in October are the next big flashpoint.
If the GCC crisis lasts for months or even years, the appeal of more extreme measures could grow over time.
Faltering U.S. gas production in 2016 was an aberration, a side effect of both low prices and the collapse in the oil market, which cut the output of associated gas. In the next five years, U.S. gas production will make up 40% of global supply growth.
Similar to other Gulf producers, UAE and Qatar are making efforts toward the twin goals of reducing expensive fuel subsidy programs and diversifying exports through larger natural gas volumes.
The contradiction of proposed increases in fuel efficiency standards for large trucks is that although they will reduce oil consumption, they will also discourage the adoption of alternative vehicles that run on natural gas and make them less competitive in the trucking sector.
While crude and products will see only modest changes from the expansion of the Panama Canal, the effects for LNG and propane will be much greater. The U.S. LNG industry will now have access to a transit route that can accommodate larger tankers at a time the industry is primed to export volumes to Asia.