More Significant Trends to Watch Than Ever

More Significant Trends to Watch Than Ever
Rigzone's regular energy prognosticators take a look at U.S. natural gas infrastructure, Henry Hub prices, refinery utilization rate effects and more.

(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 take a look at U.S. natural gas infrastructure, Henry Hub prices, refinery utilization rate effects and more. Read on below to find out the specifics.

Rigzone: What developments/trends will you be on the lookout for this week?

Gerrad Heep, National Partner In Charge of Energy – Audit, Grant Thornton: It seems like there are more significant, impactful trends and developments to watch than ever. It might not be next week, or next month, but one development I hope to start watching is serious conversation around building out U.S. natural gas infrastructure. We are only beginning to see supply shortfalls in products like fertilizer, which rely on natural gas for feedstock. The U.S. could probably not export enough natural gas (LNG) to Europe in coming months to meet their demand due to the Ukraine conflict. Even John Kerry has said that natural gas is going to be crucial in his energy transition goals. For a number of reasons, demand is only going in one direction. Is $7-$8 natural gas enticing enough for the producers to stop flaring and the shippers to spend the capital for gathering and transportation lines? Will the government get out of the way and let the lines be built?

Tom Seng, Director – School of Energy Economics, Policy and Commerce, University of Tulsa’s Collins College of Business: How long can Henry Hub natural gas stay above $8.00? Will U.S. refineries start to experience outages due to running at over 90 percent utilization for so long now? What will the forecasts be for the upcoming U.S. hurricane season? Will the EU finally develop a plan to phase-out imports of Russian energy? Will all member countries take a firm stance on the proposal?

To contact the author, email andreas.exarheas@rigzone.com


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