Energy Crisis Chatter to Accelerate
(The views and opinions expressed in this article are those of the attributed sources and do not necessarily reflect the position of Rigzone or the author)
In this week’s preview of what to watch in oil and gas markets, Rigzone’s regular energy prognosticators highlight the global natural gas situation, emerging cold weather patterns, price projections and more. Read on to find out the full range of topics and trends the market observers will be on the lookout for this week.
Tom McNulty, Houston-based Principal and Energy Practice Leader with Valuescope, Inc: Winter is coming. The chatter about an energy crisis, both here and in Europe, will accelerate and there will be a lot of finger pointing. What is clear is that natural gas is essential regardless of where anyone stands along the climate debate spectrum. Look for production to go up and the price here to drop to a $5.00 to $5.25 range.
Samuel Indyk, Senior Analyst at uk.investing.com: I’ll be keeping an eye on the natural gas situation in Europe, Asia and the U.S. If a natural gas shortage in the U.S. begins to manifest itself and prices rise in a similar fashion to that seen in Europe, then we could see an even larger shift from gas to oil in the coming months. According to a report from the EIA, natural gas was the largest source of electricity generation in the U.S. in 2020, making up about 40 percent, so if gas prices spiral out of control then we could see natural gas generators switch to oil as the fuel.
Tom Seng, Director – School of Energy Economics, Policy and Commerce, University of Tulsa’s Collins College of Business: How soon will cold weather enter the global demand picture and exacerbate an already strained energy market? Cold fronts have been moving into the Plains and Southeast U.S., colliding with warmer weather and creating severe storms. This typical fall weather pattern usually portends much lower temperatures behind it. Should that be the case, our natural gas storage and distillate inventory shortfalls could create later winter problems.
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