Demand Rising for LNG and Oil Cargoes
Rigzone’s downstream readers paid considerable attention to articles this past week focusing on signs of improving fortunes of players within the global crude oil and LNG markets. However, readers also showed interest in another recent piece detailing one place that appears to want less of an important energy commodity. Keep reading for details.
Like others in the U.S. oil and gas industry, LNG exporters have had to contend with low prices and low demand this year. However, as this article from Rigzone contributor Jude Clemente points out, the market for LNG from U.S. export terminals has been improving. In fact, he observes that demand has entered record territory in recent weeks. Although there has been an uptick in traditional Asian demand centers, Clemente also discusses how U.S. producers and shippers can make further inroads into the European market.
California has long been the source of noteworthy public policy ideas, and Rigzone’s downstream readers have taken note of recent action by the San Francisco Board of Supervisors. Specifically, the board has passed an ordinance banning the use of natural gas in new buildings starting in June 2021, according to this Bloomberg article. A sponsor of the ordinance cited in the news item contends the prohibition addresses “major health and safety risks” and aids in the fight against greenhouse gas emissions. The news agency also notes the utility PG&E Corp., which supplies San Francisco with natural gas and electricity, backs the measure. It does not, however, mention the challenges California has faced maintaining steady power supplies.
Thanks to growing demand from refiners and traders in countries such as China, India and South Korea, physical crude oil cargoes are commanding higher prices, according to this Bloomberg article. The news service pointed out a bidding war is underway for crude supplies from Russia, the United States and the Middle East. It attributes the more robust market conditions to factors such as looser Chinese import quotas, below-normal supplies from OPEC producers and a rebound in India’s petroleum consumption.
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