for Natural Gas
The Eastern Mediterranean has already become a significant source of natural gas production, but fully developing the region’s gas reserves, as well as finding ways to move that gas to market, has been extremely challenging.
Despite the abnormally low level of gas sitting in storage, natural gas prices have barely moved. Shale gas drillers continue to add supply, which will likely allow the U.S. to avoid a supply crunch this coming winter.
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.
Despite setbacks for the industry, the U.S. shale gas revolution still persists, with the Marcellus play thriving, drillers using more efficient techniques, and exports possibly rising over the long term.
T. Boone Pickens talks to Fred Smith of FedEx and Chris Spear of American Trucking Associations about energy and environmental policy and why natural gas is an important fuel for the trucking fleet.
The Eastern Mediterranean has not seen dramatic development to date, but the scale of its reserves could be enormous and potentially alter the energy security and trade outlooks for the different countries in the area.
Henry Hub spot prices are up to roughly $3.20/MMBtu, up more than 100 percent from the March low point and up 15 percent since September. Looking forward, the market could grow tighter still.
Natural gas prices in the U.S. for August delivery climbed to $2.90 per million Btu (MMBtu) on the last day of June, capping a 30 percent rally in just one month. Today’s prices are also the highest in nearly a year, ending an extraordinary run in which spot prices stayed below $2/MMBtu for much of that time.
Natural gas markets have not lived up to the expectations in the intervening years since the International Energy Agency originally speculated about a potential golden age for gas.
Mozambique, home to the third-largest natural gas reserves in Africa, is offering little evidence that it can become an LNG powerhouse without marginalizing the local population.