Here’s a quick roundup of news stories from the last few weeks.
Significant for the energy markets in Europe is news that the US is now a net exporter of gas for the first time, aided by LNG exports and buoyed by the gas they extract from fracking.
After suffering in recent years with the downturn in value of refined oil products, it’s good to hear that refining is back in the black.
I notice that part of the credit is given to Trump and his tax reforms.
In contrast to the previous article it seems refiners in Europe are suffering.
Over in India, the World’s largest refinery increases capacity again.
“The new capacity is the equivalent of 704,000 bpd of crude processing.”
Wow – that’s proper massive!
This is an interesting side-story to the oil supply paradox as countries seek to increase revenue by exporting more oil which, in turn, causes prices to fall.
“The share of Saudi Arabia’s exports of refined oil products steadily rose throughout 2017, offsetting a drop in overseas crude oil sales as the kingdom complied with a global supply pact, the International Energy Agency said on Friday.”
So, as Saudi Arabia agrees to cut crude oil supply to maintain oil prices, they increase the supply of refined products to maintain revenues. This is something few other countries can do as refineries all almost all privately owned.
It also indicates Aramco’s strategy to move towards final products rather than relying on crude exports. Interesting.
Over in the far east, as demand for energy grows they are looking to expand oil and gas production.
A large amount of LNG is already exported from the region. I visited the Malaysia LNG site in Bintulu a few years ago for some troubleshooting.