The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Gas Glut... but ..gas price on the rise ..Henry Hub $1.95
https://markets.businessinsider.com/commodities/natural-gas-price
Not only traditional LNG exporters, such as Qatar, or East Med producers like Egypt or Algeria, are being hit by the current glut. US shale gas exporters are now facing a major crisis too.
US gas exports are now only contributing to the glut, pushing prices even further down.
Booming U.S. exports combined with lower Asian demand is a major recipe for disaster, effecting most IOCs, but especially Shell, Total and ENI, as all have been concentrating their own investment and expansion strategies in natural gas.
Some US producers, such as Chesapeake Energy are already fighting bankruptcy, and IOCs have been hit by a slump in profits.
https://oilprice.com/Energy/Natural-Gas/The-Worlds-Top-LNG-Producer-Is-In-Trouble.html
The LNG outlook is a must view if you hold are are thinking of investing.
Is a big part of the business and the evolution from oil-linked to gas market based pricing is not widely understood.
Have a look for yourself but is a reason I will only be buying below £18
FORTHCOMING EVENTS
The LNG Outlook will be held on February 20, 2020 in London.
The oil price picks up and that seems to help the Sp. No sh*t Sherlock.
Dont forgat that asset impairments are generally historic accounting costs ( cash spent already) Cashflow not generally impacted except decommissioning costs less operating and in life capex costs saved etc. Think thats where BP is coming from by keeping the cash flowing whilst right sizing the historic costs for future investment in renewables.
I sold some shell this morning and bought back later with profits from a trade. Hope the oil price picks up as that seems to help
Falling gas demand...they MUST get the Chinese economy back to work....this is crippling gas and oil demand over there
https://oilprice.com/Latest-Energy-News/World-News/Chinas-Gas-Demand-Growth-Slows-Further-On-Coronavirus-Outbreak.html
https://www.reuters.com/article/us-china-health-gas-demand/analysts-cut-chinas-gas-demand-estimates-as-virus-outbreak-weighs-idUSKBN20618U
https://www.fitchratings.com/site/pr/10110662
The danger here and with the other energy companies is that this continued downturn in energy prices will lead to more asset impairments ...look at Centrica's writedowns, today..yikes!
For buyers , be grateful for this fall back. Just buy whenever you can. Shell goes down then Shell goes back up. Strong buy and I'm adding tomorrow.