EIA Releases 2014 Energy Outlook and the Future for NatGas Looks Bright


The Energy Information Administration’s 2014 Energy Outlook forecasts an increase in natural gas production of 56 percent by 2040, reaffirming what those in the industry already knew: we’re now in a position to not only supply our own needs but to help supply others through our exports as well.
 
Since the US was the world’s fourth-largest importer of LNG as recently as 2007, it’s understandable that some may still be hesitant to get behind the idea of exporting this surprisingly sudden wealth of natural resources. But the fact remains that the US is now the world’s biggest natural gas producer, thanks to the shale oil and gas boom created by hydraulic fracturing, and production is set only to go up for the next several decades, at least.
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Breaking Ground: Will Brits Cheer or Curse This American Export?


The United Kingdom is in trouble, and an American export could be just the thing that’ll help—now it remains to be seen whether this export will be welcomed or rejected.
 
The UK suffered a sobering gas shortage last winter and experts expect another shortfall this winter. How can this be happening to a nation that is the largest oil producer and second largest gas producer in the European Union? It’s the same phenomenon we’re seeing in Egypt: locked into long-term export contracts, these nations now don’t have enough resource to fulfil their own needs. The UK has been importing oil and gas since 2004/2005, and now production from the North Sea is on the decline.
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The Competitive Edge of an Integrated Supply Chain


In today’s fast-paced global market, there’s no room for inefficiency, especially when it comes to logistics. Transportation of oil products, limited storage capacity, machine and vessel needs, and workforce scheduling restrictions are all major logistical variables that, if not streamlined, can create expensive lag throughout your operations. Supply chain planning and optimization has never been more critical. An optimized supply chain can not only save time and money in the short term, but also map toward long-term business goals.
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10, 9 8, 7, 6, 5…., Oil & Gas Outlook 2014

Over the last year, oil prices have been volatile while natural gas prices have improved slightly.  Currently the bifurcation of oil prices to natural gas prices is less than last year but due more to oil dropping in price rather  than gas rising.  U.S. production of black oil is rising at a rapid rate.  Once again production is out stripping our ability to transport oil to the refiners.  With the lower prices our refiners have a major advantage over refiners overseas.  Our gasoline in storage is at or above the highs for this time of year.  They are exporting over 3,500,000 barrels of refined product per day overseas.  The vast majority of this is diesel.  Europe consumes a higher ratio of diesel than gasoline.  Even though the crack spread on gasoline has been reduced, the profit on diesel is much higher by exporting into Europe and South America.  Generally we are not allowed to export oil, but we can export refined product.  This is not bad in that the value added helps our economy and reduces our trade deficit.
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