Tag: Natural Gas

Demographics | Oil & Gas Production

FT – China’s falling birth rate threatens economic growth – Sun Yu 1/19/20

FT – Italy’s collapsing birth rate rings demographic alarm bells – Miles Johnson 1/16/20

WSJ – Daily Shot: eia – US Shale Production by Region 1/20/20

WSJ – Daily Shot: Gas Production by Country 1/20/20

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What’s the right protocol when you have too much gas…

WSJ – Texas Showdown Flares Up Over Natural-Gas Waste – Rebecca Elliott 7/17/19

A pipeline company is challenging Texas’ practice of allowing drillers to set unwanted natural gas on fire, in a case that could test state limits for how much of the fuel can legally go to waste.

Now, shale producer Exco Resources Inc. is seeking to flare nearly all of the gas produced by a group of South Texas wells, even though its operations are already connected to a network of pipelines. Williams Cos., the operator of the pipelines, is challenging the request, in what is believed to be the first such dispute on record.

Williams attorney John Hays Jr. told commissioners in a hearing last month that granting Exco’s request would open the door to wasting gas any time doing so is more profitable than transporting it.

The Texas Railroad Commission has received more than 27,000 requests for flaring permits in the past seven years and has not denied any of them, records show.

The case underscores the tensions surfacing in Texas as the state grapples with booming oil production and its side effects. It also exposes a growing rift between frackers and pipeline companies as the natural-gas glut is set to worsen.

Natural-gas pipeline construction in Texas, home to America’s hottest oil field, the Permian Basin, has lagged far behind production growth, in part because producers have been reluctant to commit to long-term contracts. The state’s gas output is expected to increase about 30% over the next five years, according to consulting firm RBN Energy.

In the region’s two largest oil basins, the Permian Basin and Eagle Ford, operators flared or vented—where gas is released without being burned—into the atmosphere an average of about 740 million cubic feet of gas a day during the first quarter, according to public data compiled by energy analytics firm Rystad Energy. That gas would be worth about $1.8 million a day at current prices and produced greenhouse gas emissions equivalent to that of nearly five million cars driving for a day, according to estimates from the World Bank and the Environmental Protection Agency.

May 16, 2018

Perspective

FT – Anbang: the downfall of China’s global dealmaker – Henny Sender and Don Weinland 5/13

  • “The Wu Xiaohui who appeared in a Shanghai court in late March on fraud and embezzlement charges was a far cry from the man who rapidly turned a modest provincial car insurance business into an investment conglomerate with Rmb2tn ($316bn) in assets.”
  • “Tie-less and wearing a rumpled suit, the founder of Anbang ‘expressed deep self-reflection, understanding of and regret for the crimes and expressed deep remorse’, according to a post on the court’s social media account. But to no avail. On Thursday, he was sentenced to 18 years in prison.”
  • “At the time of his detention in February, Anbang controlled 58 companies directly or indirectly. As well as New York hotels, its holdings included rescue financings of troubled European financial institutions, control of a South Korean insurer and substantial equity stakes in about 20 major listed companies in China.”
  • “The charges that Wu was convicted of relate to the way the finances of the group were managed, including the shifting of billions of dollars of funds between different entities that he allegedly oversaw. His sister, who was officially head of Anbang Hong Kong, has also been detained.”
  • “Prosecutors accused Wu of using ‘false material’ in 2011 to get regulatory approval to sell insurance products. They also said that he had oversold Rmb724bn of insurance products and had diverted Rmb65bn to another company he controlled, which he had partly used for ‘lavish personal spending’.”
  • “In addition, Wu was accused of using the proceeds from insurance sales to inject capital back into Anbang in order to give the impression that the company was more financially stable than it was.”
  • “Analysts say Anbang was bound to attract the attention of Chinese regulators because of the nature of its business model. The group relied on issuing wealth management products for its funding. These risky investments were sold to ordinary people seeking higher returns than they could get from bank deposits. Given the nature of the investors, the Chinese authorities worried that any failure to pay out on the products could lead to social friction.”
  • “At the same time, the group took huge risks on how it invested the funds. Two months before Wu was detained, the company had 19% of its long-term investments in stocks, presenting a high level of risk should the market be hit by a downturn. Most insurance companies in China have less than 5% of their assets invested in the stock market. Another 19% was invested in redeemable short-term loans provided through trusts, an opaque area of shadow banking in China in which risk is almost impossible to assess with available public information.”

Maps on the Web – World’s Largest Metropolitan Populations Mapped onto the U.S. 5/10

Worthy Insights / Opinion Pieces / Advice

FT – The challenges of a disembodied economy – Martin Wolf 11/28/17

  • “Policymakers must reckon with a world in which companies invest in intangible assets.”

FT – How to make sense of the volatile natural gas market – Nick Butler 5/13

  • “Rising prices in Asia seem to suggest we are at the start of a new super cycle.”

Pragmatic Capitalism – Putting the Rise in Yields in Perspective – Cullen Roche 5/15

Project Syndicate – Managing the Risks of a Rising Dollar – Mohamed A. El-Erian 5/14

  • “Some may view the US dollar’s appreciation as consistent with a long-term rebalancing of the global economy. But, as Argentina’s recent request for IMF financing starkly demonstrates, a sharp and sudden dollar appreciation risks unbalancing things elsewhere.”

WSJ – Here Comes the Sports Gambling Apocalypse – Jason Gay 5/14

  • “A Supreme Court ruling has the potential to radically change sports in America. But will it?”

Energy

FT – Collapsing Venezuela oil exports seen to be pushing prices higher – Anjli Raval, Jonathan Wheatley, David Sheppard, John-Paul Rathbone, and Gideon Long 5/14

WSJ – Daily Shot: Morgan Stanley Research – Gasoline Expenditures by Income Quintile 5/15

Environment / Science

WSJ – Recycling, Once Embraced by Businesses and Environmentalists, Now Under Siege – BoB Tita 5/13

South America

WSJ – Daily Shot: USD / ARS (Argentine Peso) 5/14

WSJ – Daily Shot: Black Market Exchange Rate for USD / Venezuelan Bolivares 5/15