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MORNING ENERGY NEWS | 12/22/2020

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Whatever happens in the swamp, the rest of the world is still hungry for American freedom molecules.

Bloomberg (12/21/20) reports: "Croatia will receive the first liquefied natural gas cargo from the U.S. at its new import terminal, easing its dependence on fuel from Russia. The LNG vessel Tristar Ruby, which loaded at the Cove Point plant in Maryland, is headed for Croatia’s terminal on the Adriatic island of Krk, according to ship-tracking data on Bloomberg. The ship is scheduled to arrive on Jan. 1, the expected start date of the terminal. Hrvoje Krhen, managing director of LNG Croatia LLC, confirmed that the Tristar Ruby will deliver the new terminal’s first cargo and is set to arrive on Jan. 1 A commissioning cargo on board the floating storage and regasification vessel LNG Croatia FSRU arrived from Sagunto, Spain, on Dec. 1. The vessel is in place and will be used as the import facility, part of a trend toward nations using floating solutions for a quicker and cheaper way to enter the LNG business. 'The new terminal in Croatia, combined with those in Lithuania and Poland, constitute the new anchor points of a new north-south corridor which brings much greater gas diversity and competition to Central and Eastern Europe,' he said."

"Decarbonizing the rest of the world makes China’s economy stronger – it weakens its rivals’ economies, reduces the cost of energy for its hydrocarbon-hungry economy, and sinks energy-poor India as a potential Indo-Pacific rival."

– Rupert Darwall,
RealClear Foundation

Remember when it was about getting from point A to point B?

It wasn't sanctions or international agreements that broke OPEC, it was American ingenuity.

Wall Street Journal (12/21/20) reports: "Everyone seems to have an opinion about fracking. The revolutionary and controversial oil-and-gas exploration technique has raised the ire of oil sheikhs, investors and environmentalists while minting billionaires and wiping out tens of billions of dollars fronted by many of their lenders and investors...Fracking has been groundbreaking for the U.S. and the world. Up until 2000, U.S. onshore oil-field development had stalled; fracking breathed life back into hydrocarbon production. In September 2019, the country became a net monthly exporter of crude oil and petroleum products for the first time since the U.S. Energy Information Administration started keeping monthly records in 1973...While members of the Organization of the Petroleum Exporting Countries still collectively produce more oil more cheaply than anyone else, fracking has wrecked their pricing power. Whenever OPEC has cut back on its supply to prop up prices, U.S. producers have tended to jump in to fill the gap. A 2019 study from the Dallas Fed found that long-dated oil futures have closely tracked the break-even price for U.S. oil producers since 2014. The U.S. has become the marginal producer when it comes to meeting long-term demand.

Can't keep a good man down.

OilPrice.com (12/16/20) reports: "Exports of liquefied natural gas (LNG) out of the United States hit an all-time high in November due to recovering global gas demand and prices and unplanned outages at LNG export facilities outside the U.S., the Energy Information Administration (EIA) said on Wednesday. According to EIA estimates, the U.S. exported a total of 9.4 billion cubic feet per day (Bcf/d) of LNG in November 2020, beating the previous record set in January 2020, when exports totaled 8.1 Bcf/d. The U.S. LNG exports last month accounted for 93 percent of peak LNG export capacity utilization, the EIA said. For most of the spring and summer of this year, American LNG exports were low, and they even hit their lowest volume in 26 months during the summer due to depressed demand with lockdowns all over the world. Earlier this year, when demand for natural gas across the world plunged due to the pandemic, buyers began to cancel cargo loadings of U.S. LNG, as gas in storage from Europe to Asia was abundant after a milder winter and the coronavirus that wiped out a lot of previously expected demand...American LNG exports have steadily grown since the summer, to reach a record in November, the EIA said today."

Energy Markets

WTI Crude Oil: ↓ $47.11
Natural Gas: ↑ $2.77
Gasoline: ↑ $2.23

Diesel: ↑ $2.53
Heating Oil: ↓ $146.14
Brent Crude Oil: ↓ $50.12
US Rig Count: ↓ 390

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