Friday, March 4, 2022

Natural Gas/ Europe/ Baker Hughes Rig Count

 European Natural Gas costs, have of course screamed up post Ukraine. Luckily, it s been a relatively warmer winter than usual.

 On the ICE April 22 UK delivery is roughly 6 x the Mar Henry Hub price here in the good old USA.

You might say there is strong economic, and possibly strategic incentive to export LNG. 

And they ARE. Out in the Atlantic sailing last fall we actually saw 2 LNG transports heading East (very unusual).

 BUT only so much capacity exists. And we are currently running flat out as you might imagine.

From S&P, "The U.S. Energy Information Administration recently forecast that the new Venture Global and Cheniere facilities will increase the country's peak LNG production capacity from 11.6 Bcf/d as of November 2021 to 13.9 Bcf/d by the end of 2022 across the seven export facilities. The agency forecast that baseload U.S. LNG liquefaction capacity will increase from 9.5 Bcf/d to 11.4 Bcf/d over the same time frame. 

So roughly an increase of export capacity down the road that equals  2%  of total current domestic production capacity.

Couple of interesting charts here. Thanks to WRTG for the steal.

 




 Do you think we might see those counts go up over the next year or two?

Waiting on the Baker Hughes Rig Count.....and here we go.





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