Implications of the recent Gorgon LNG sale announcements
As I alluded to in my earlier blog, 2009 will be characterised by low gas prices and increased supplies. This will impact all gas markets and both the pipeline and LNG trade. With global LNG supply set to increase by 20% over this year, and faltering demand in most markets, there is no reason to assume that gas prices are likely to rise in the near future
2009 will be a year of historically low LNG prices
How the world has changed! In a few short months, the euphoria of the world energy markets has given way to pessimism and foreboding for the future. Energy companies have had to grapple with dramatically reduced revenues (if they were lucky enough to have producing assets) as well as the start-up of expensive projects, most of which were constructed during the past few years when all costs – including labor, steel and other metals, land, and energy – were at historically high levels. A perfect storm of tough times.
Oil Price Parity … is this realistic?
There has been much talk recently about gas prices finally rising to the level of oil price parity, on an energy equivalent basis. Energy equivalent price is calculated by dividing oil prices (in $/bbl) by a factor of 5.8 to 6 to give equivalent prices in $/MMBtu.