General chit chat thread., page-1544

Key takeaway for me from these articles are that holding energy stocks is a smart move during this war-time, especially oil & gas.

Ukraine war could spell return of boom for gas

Decisions by multiple global oil and gas majors to pull out of Russia at the same time as expectations are rising of a tightening global supply-demand balance in gas are adding to the transformation of prospects for some LNG projects in the Australian region that had been put on the back-burner amid heightened concerns around costs and carbon emissions.

The market is closely examining the likely impact of the flight from Russia of multiple majors including BP, Shell and ExxonMobil and whether that will impact LNG flows from major export ventures such as Sakhalin in eastern Russia to heavily import-dependent Japan and South Korea.

Russia accounts for 30 million tonnes a year of global LNG production or about 8 per cent of global supply, and the exit of the majors could lead to declining exports, said Credit Suisse analyst Saul Kavonic. He regards the dramatic events of the past week as essentially returning the LNG market to boom conditions not seen since early last decade.
Still, others say the soaring prices will also add further momentum to the push to renewable energy away from oil and gas.“

The legacy of this conflict for Europe is likely to be twofold: first, greater diversity of energy supply, in particular gas, which is too dependent on Russia. This could involve increased LNG imports from the US or possibly Middle East,” said Bernstein’s Mr Beveridge.

“Second, greater emphasis will be placed on pivoting towards clean energy, such as solar, wind, hydrogen and possibly nuclear power.”

https://www.copyright link/companies/energy/ukraine-war-could-spell-return-of-boom-for-gas-20220302-p5a0zx

Australian LNG exports to Europe expected to jump
“With the European crisis, the demand for Australian LNG is likely now to be even greater, which is an opportunity to win more contracts for current new projects. Woodside should be able to contract more of Scarborough and Santos more of Barossa,” consultancy EnergyQuest says in a report published on Tuesday.

Woodside late last year gave the go-ahead to the $16.4 billion Scarborough project, which is set to be the biggest fossil fuel development in Australia for almost a decade and has been the subject of growing environmental opposition.

The Scarborough project – holding about 11 trillion cubic feet of gas – would lock in another 30 years of LNG exports starting in 2026, when shipments are due to start from the expanded Pluto site near Karratha.

Santos last year gave the go-ahead for the $US3.6 billion ($4.7 billion) development of the Barossa gas field off Australia’s northern coast.

The project, which will supply 20 more years of gas for the 3.7 million tonnes-a-year Darwin LNG project, is Santos’ first major growth investment since the oil price crash a year ago that brought major development projects to a halt.

The LNG boom has also stirred speculation of old projects being revived.

https://www.copyright link/companies/energy/australian-lng-exports-to-europe-expected-to-jump-20220307-p5a2gs