Natural Gas and the New Power Generation Market


When oil prices closed below $75 per barrel for the first time since 2010 on November 13, 2014, the dramatic decline left everyone from market analysts to conspiracy theorists abuzz. The market’s recent 30 percent slide has fostered speculative theories including the potential of a new global economic slowdown to geopolitical strategy at work, as well as a general recognition that new technology has increased production capacity faster than demand growth. Yet, regardless of the cause, the cut of more than $30 per barrel has some producers at or near their break-even points.
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We have the “Way;” Now need the “Will”


The “way” has already been paved by the House; now all that remains is the “will” – of the Senate, that is.
 
In September, the U.S. House of Representatives approved several bills designed to reduce the United States’ dependence on foreign energy sources, create jobs, add billions of dollars in revenue, and help protect America’s security by eliminating our dependence on foreign oil.
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The Second Battle for Sakhalin


The first battle for Sakhalin took place in 2006 and was between the foreign partners in the Sakhalin-2 project—Shell, Mitsui and Mitsubishi—and Gazprom and the Russian Government. Riding a high tide of resource nationalism, President Putin was determined to see Russian control of this massive integrated oil and gas project. Gazprom walked away with 50% plus one share of the project, and the rest is history. The second battle for Sakhalin is part of the on-going struggle between Gazprom and Rosneft for dominance in Russia’s energy scene. At the heart of the conflict is the question of how best to develop the next phase of Sakhalin’s gas exports. At present the two combatants are well dug in and no compromise is in sight. However, in an increasingly competitive Asian LNG market the current stalemate can only damage the prospects for both sides.
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Even US Needs to Improve NatGas Delivery Infrastructure


When reviewing the potential for development of unconventional resources in other countries, we often cite lack of infrastructure as a one of the challenges that puts most countries well behind the US.
 
That’s true for the most part, but when you look at natural gas delivery infrastructure, even the US has a lot of work to do to fully bring product to the market regions that need it but must currently rely on other energy sources like coal for power generation.
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