Here’s What Happens When Oil Geo-Policy and Market Reality Collide

by | published August 25th, 2015

Over 220 years ago, a Scottish writer by the name of Thomas Carlyle provided a personal account of what Paris was like during the French Revolution. The three-volume work (which at one point I suggested in an academic article was two volumes longer than necessary) is full of personal anecdotes. One of them is particularly relevant these days.

On a hot afternoon, Carlyle was sitting in a coffeehouse with a supposed high fellow of the revolution. Suddenly a shouting crowd with raised pitchforks rushed by. The revolutionary jumped to his feet, apologized to Carlyle, and said: “Those are my people. I am their leader. I must follow them.”

Cut to yesterday.

The last two trading sessions have prompted a frantic rush among investors to find whatever safe haven from a global market implosion may be available. Yet, in my circles, there is an even more interesting development afoot, one that brings back Carlyle’s 1790 conversation.

Here’s what’s really going on in the oil markets right now…

The Future of Natural Gas, Part II

by | published August 20th, 2015

As I discussed in the last edition of Oil & Energy Insider, this morning I made the keynote address at the Dominion Transport-hosted meeting of natural gas executives in western Pennsylvania.

My address comprised my primary take on natural gas prospects and is entitled “Natural Gas Moving Forward: LNG, Hubs, and Pricing Prospects.” 

As always, I try to keep you in the loop of what’s happening when I meet with the movers and shakers, so today I’ll be sharing the rest of my address with you.

On Tuesday, I sketched out the current and short-term projections for natural gas production and demand, along with the picture attending four expanding end uses for gas – electricity generation, industrial applications, for vehicle fuel, and as feeder stock for petrochemicals.

Today we are considering a fifth use for gas, the liquefied natural gas (LNG) market – along with the changes about to take place in the use of hubs to determine prices.

Here’s how LNG is about to change the global energy markets…