Future of Big Oil Increasingly Shaped by Fate of Global Gas
Bloomberg reported: Big Oil’s fortunes are becoming tied more closely to natural gas than ever before. Majors including Royal Dutch Shell Plc and BP Plc have boosted their proportion of gas output in recent years, helping them trim Exxon Mobil Corp.’s lead as the world’s most valuable oil company. Meanwhile Chevron Corp. added two giant Australian liquefied natural gas projects and Exxon is punching back with two major projects of its own, in Papua New Guinea and Mozambique. Natural gas, seen as a clean bridge from coal to renewables, offers the best long-term demand growth among fossil fuels, particularly in its easy-to-transport liquefied form. At the same time, gas exploration comes with high upfront costs and long payback periods. How the majors handle those issues will become key drivers for success moving forward. “We see the market growing rapidly, with gas demand growing faster than overall energy demand,” said Steve Hill, executive vice president for gas trading at Shell, the world’s biggest LNG producer. For more on this story visit bloomberg.com or click https://bloom.bg/2lyu5YR
Is “America First” Hurting Global Energy Relations?
Oil Price reported: Throughout history the strong bond between the United States and Europe, arguably the world’s most important alliance, has been decisive within the international arena. Massive migration from the ‘old world’ to the ‘new’ during the past centuries has been the reason for sharing important norms and values such as democracy, liberalism, and international trade. The election of President Donald Trump, however, has put doubt to this alliance, which was the strongest supporter of the rule-based international system of the present day. It has to be seen whether the election of this President is a temporary matter, or that the United states will continue, in some way or another, to choose a more unilateral path. For more on this story visit oilprice.com or click https://bit.ly/2tzMIiJ