Wednesday, March 5, 2014

Energy Investor? Russia, Ukraine, Global LNG (and Energy) Landscape (plus Investment Opportunities).

Energy Investor? Russia, Ukraine, Global LNG (and Energy) Landscape (plus Investment Opportunities).

Update yourself:
This is what was going in Ukraine. 

This is what happened to Russia's economy--stocks, currency, and oil/gas. Plus Updates.

This is WHY it is important and how it contributes to the Dynamic Energy Landscape: 

Europe relies on natural gas and oil from Russia--so does Ukraine. These recent events could demonstrate why the US Government's FERC should expedite Liquefied Natural Gas (LNG) export proposal applications soon. US LNG exports could potentially relieve European area's reliance on Russia's gas exports and weaken Russian influence with Ukraine and in general, within the energy sphere. 

MAIN Quick Important Question (QIQ): However, what would happen to U.S. domestic gas prices? Power/Utility companies wouldn't be so thrilled.

NEW UPDATE 3/6/14: Crimea Parliament is asking to be part of Russia (BBC). Further push for US Government to approve gas export proposals. 


Investment Opportunities due to the Natural Gas Boom in the United States: 

VALUE LINE (Investment Research Publishing): Key Movements And Investment Opportunities In The Dynamic Energy Landscape--SRajani:
Shale Gas RevolutionThe shale gas revolution has catalyzed the dynamic energy landscape in the United States. Domestic natural gas production has surged to record levels. This unexpected high shale gas output is primarily due to hydraulic fracturing technology, or fracking, which has allowed new discoveries of gas resources of reserves to pay off. These include Marcellus in the northeast, Bakken in North Dakota, and Eagle Ford in Texas.
LNG LandscapeBecause of the high supply of shale gas, there has been a surge in applications for Liquefied Natural Gas (LNG) terminals to ship U.S. gas internationally. About 30 export applications have been sent to the U.S. Government Department of Energy’s (DOE) Federal Energy Regulatory Commission (FERC). However, it has been a challenge for LNG market participants to get these export permits approved. The DOE aims to limit the amount of U.S. LNG that can be exported to resist domestic natural gas price spikes. There is also pressure from power companies and/or petrochemical companies that use natural gas as feedstock for production of petrochemicals to restrain exports. Those include: DowChemical (DOW), Huntsman Corp. (HUNCelanese (CE), and Eastman Chemical Co. (EMN).
Recently, the FERC approved an export license (subject to environmental review) for the Cameron LNG. This was a significant step towards final approval. Cameron LNG terminal is located near a major pipeline hub that serves about two-thirds of all U.S. natural gas markets. This application was submitted by Sempra Energy (SRE). Sempra Energy’s stock went up 1.5% topping at $94.21 per share that day. After the environmental review is completed, the next step will be the final regulatory approval.
The Cameron terminal is located near the Texas border near Hackberry, LA. A big proponent of this approval, Louisiana Senator Mary Landrieu, will soon be chairwoman of the Senate Energy and Natural Gas Committee.Cheniere Energy Inc. (LNG) is also building a $10 billion LNG export terminal. Given this upcoming senatorial change, export approvals may be expedited, which could be a plus for Cheniere.....continued. Read more 

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