Around the World in Energy News
Email

Around the World in Energy News

by | published September 22nd, 2018

It’s been a busy week for the energy industry – I’ve had to work hard to keep up with it.

The general consensus, however, is extremely encouraging. I can tell you that in most facets of the energy industry, things are looking up and stable.

Oil prices have begun to recover, with global oil benchmark Brent closing just below $80 a barrel last week, and U.S. benchmark West Texas Intermediate (WTI) topping $71 a barrel.

We haven’t seen prices like these since the highs back in May and June, and it’s a nice relief from the volatility we’ve been experiencing.

The reason for this rise, as it so often is, is geopolitics.

With Venezuela moving faster than ever to an inevitable financial collapse (note that Venezuela is the nation with the biggest known oil reserves), and civil unrest in Libya and Nigeria – two other oil countries – oil supply has been tightening.

The result is very encouraging higher oil prices.

That’s not to mention the headlines that Beijing and Moscow have been generating these days, after several unprecedented friendly meetings and agreements.

China and Russia have begun military exercises – but we’re not keeping quiet.

The main roundup in the energy world, however, has been focused on the liquefied natural gas (LNG) trade…

We’re See-Sawing on the Tariff Playground

Earlier this week, I told you here in Oil & Energy Investor that President Trump slapped an additional 10% on some $200 billion in Chinese imports to the U.S. I also said that the threat is now that these will increase by 25% by the year’s end, with an additional $267 billion targeting should Beijing retaliate.

Well, Beijing has retaliated.

On Wednesday, China implemented tariffs on U.S. LNG, threatening export growth. Remember, China is poised to become the world’s largest importer of LNG by next year, with much of that coming from the U.S.

With tariffs on exported U.S. LNG shipments, it’s looking less and less likely that the above scenario will happen; concerns are abounding that China may shift its LNG imports from the U.S. to other countries, including Qatar – with whom China has just signed a multi-decade agreement – and Papua New Guinea.

However, not everything is doom and gloom in this situation.

Just after the Chinese announced this new tariff, the co-founder of a prominent LNG producer discussed the impact this will have – which, according to him, will not be as bad as all that.

His main point agrees with what I have been saying for some time now: because other countries can’t offer LNG as cheaply as the U.S., he is not hugely concerned about the new tariffs, and therefore, LNG companies will not fare too badly in this situation.

This new fuel source could absolve you of your electricity bill – details here.

In addition to this, I can tell you that while China may become the biggest LNG importer in the world, they’re far from the only.

There are other markets for U.S. LNG exports, and here’s why…

The Profit Potential Lurking in This Tiny Company

There is a massive move afoot to develop a much more sophisticated contract swap network internationally that would make the initial contract target for LNG sales less important than the volume being moved.

To date, these are private finance deals.

However, there are some recent developments recently with LNG in the public sector that are ripe for profit.

One, for example, is an opportunity I spotted a little while ago.

But it’s just upped the ante with a new, massive project they’re working on that will commence in 2019.

In fact, other energy companies are scrambling to get in with it – 25 to be exact, who are interested in partnering with and buying from this huge project.

I am confident that this company is about to skyrocket, and just in time for an LNG revolution.

I have pages of research on this fantastic opportunity, and if you’d like to learn how to get access to it, just click here.

Sincerely,


Kent

Please Note: Kent cannot respond to your comments and questions directly. But he can address them in future alerts... so keep an eye on your inbox. If you have a question about your subscription, please email us directly at customerservice@oilandenergyinvestor.com

  1. No comments yet.
  1. No trackbacks yet.