The Chinese LNG Conundrum

The Chinese LNG Conundrum

by | published October 20th, 2018

Longtime readers of Oil & Energy Investor are aware that I’m deeply involved in global politics.

It was a somewhat natural progression from my career as a U.S. intelligence officer to become an advisor and consultant for multiple governments around the world.

The result?

I am privy to more information than most in the area of global geopolitics.

Of course, it’s the energy side of things that is of the most interest to me.

In fact, there are fewer than 50 people who control the energy industry worldwide.

And they all have me on speed dial.

In the span of my career, I’ve never have a shortage of energy-related issues to analyze and advise on.

Especially these days.

Energy has been on the hot plate these past few weeks and months, and it’s no surprise.

From Saudi Arabia and OPEC raising production levels to the rise of renewable energy to the ever-expanding economic crisis in Venezuela, we’ve been seeing many different factors influence the oil industry.

The most influence on the price of oil, along with oil exports, however, lies in Asia…

20% of this critical resource about to vanish… so why am I so excited?

China’s LNG Retaliation

China is the world’s largest consumer of energy.

In fact, China consumes nearly double the amount of oil than the second largest – the United States.

So, when it became known that China is looking to move away from coal – the country’s current primary source of energy – the dollar signs started popping up in liquefied natural gas (LNG) exporters’ brains.

Over the past few years, as China begins to phase out its coal usage, it had been increasing imports from the U.S., both crude and refined oil product.

The U.S. is a major exporter of LNG, with 15% of its exports going to China alone.

With increasing exports moving globally from American producers, it had become a useful lever in diversifying sourcing.

Well, that was the case until the U.S. started throwing tariff threats around.

Beijing has since put retaliatory fees on U.S. oil products.

The U.S. has been warned by plenty of industry experts and insiders that we can’t afford to lose China’s business, particularly in the LNG trade.

But President Trump’s recent decision escalated the situation anyway.

The U.S. President has recently imposed yet another round of tariffs, this time on $200 billion worth of Chinese imports.

Beijing’s response to this was to simply stop buying U.S. crude and LNG exports.

With prices rising and the LNG business more lucrative than ever, now is the perfect time for the U.S. to take full advantage of China’s need for this vital source of energy.

In fact, I’ve been saying for some time now that we’re looking at $100 a barrel by the end of this year – something that has been looking increasingly likely as sanctions against Iran could push prices up dramatically.

And if China retaliates further, they may impose tariffs on LNG exports from the U.S.

According to Asia analyst Hugo Brennan, “Beijing’s decision to impose tariffs on U.S. LNG sends a clear political signal to Chinese buyers to prioritize alternative sources of natural gas.”

All this will cause the U.S. more damage in the long term than China will experience in the short term.

Simply put, the U.S. LNG market is in a tight spot.

However, it’s not something that can be torn down so easily…

I refuse to stay silent about this South China Sea situation

Global Demand Means for some Unique Profit Opportunities

China may have been the U.S.’s largest LNG customer, but they’re not the only ones.

Global demand for LNG has been surging faster than we ever could have expected.

And it’s easy to understand why.

Every week, the global population grows by over 1.5 million people – like adding a large new city about the size of Philadelphia every week, all year long.

This massive growth creates an unprecedented demand for energy worldwide.

And the U.S. has fast become one of the world’s top LNG exporters.

Which leads to some fantastic opportunities with U.S. LNG producers and exporters, like this tiny $2 million company.

It’s been in the coffin of obscurity until now, but its development of a secret weapon could decimate its competition and become the world leader in LNG.

Early investors could be poised to make a fortune.

And you could be one of them.

If you’d like to learn more, just click here now to learn how to get access to all of my research on this once-in-a-lifetime opportunity



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