AuthorTopic: Fracker Debt Bubble  (Read 113602 times)

Offline BuddyJ

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Re: 🛢️ A Fracking Ban Will Never Happen
« Reply #465 on: September 16, 2019, 08:08:42 AM »
economics can only kill it if folks stop using oil and natural gas.

No, economics kill it because it can't be extracted at a price enough consumers can afford to pay.  Price goes up, demand goes down, glut ensues, prices fall, rinse and repeat until you hit bottom.

RE

Okay, so we've seen two of those cycles since the Great Recession. The one that hit its height in WTI at $145/bbl in July of 2008 and nadir in February of 2009 at $34/bbl. So that would be the crashing demand, followed by glut and low prices.

Price then increased into the $100+ range from 2011-2014. Demand didn't decrease, it increased.



This appears to be more of a cycle, not hitting a bottom, but bouncing around, and for reasons far more substantial than whether or not some company or another decides to do hydraulic fracturing. If memory serves, that entire high price period just about created the US shale revolution, and that revolution grew oil and gas production even more once prices went DOWN. That production caused a drop in price, and demand just kept increasing through the 2014-2018 time period as well. So the relationship of volume and price didn't even do the cycle thing from 2011-2018 as expected.

Offline RE

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Re: 🛢️ A Fracking Ban Will Never Happen
« Reply #466 on: September 16, 2019, 08:41:46 AM »
economics can only kill it if folks stop using oil and natural gas.

No, economics kill it because it can't be extracted at a price enough consumers can afford to pay.  Price goes up, demand goes down, glut ensues, prices fall, rinse and repeat until you hit bottom.

RE

Okay, so we've seen two of those cycles since the Great Recession. The one that hit its height in WTI at $145/bbl in July of 2008 and nadir in February of 2009 at $34/bbl. So that would be the crashing demand, followed by glut and low prices.

Price then increased into the $100+ range from 2011-2014. Demand didn't decrease, it increased.



This appears to be more of a cycle, not hitting a bottom, but bouncing around, and for reasons far more substantial than whether or not some company or another decides to do hydraulic fracturing. If memory serves, that entire high price period just about created the US shale revolution, and that revolution grew oil and gas production even more once prices went DOWN. That production caused a drop in price, and demand just kept increasing through the 2014-2018 time period as well. So the relationship of volume and price didn't even do the cycle thing from 2011-2018 as expected.

Yes, demand does increase due to the fact that population continues to increase.  It's the RATE of increase that falls below expectations for growth, and that's what kills the investment because you need the constant growth to cover the interest on the investment.  That's why it is a Calculus problem.

The production increases, but the profitability from that production is falling.  Episodes like this perform the function of a Goalie doing a Stick Save.  But eventually, too many Pucks are going to be flying at the Goalie's head, and he can't stop them all from reaching the net.

RE
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Offline BuddyJ

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Re: 🛢️ A Fracking Ban Will Never Happen
« Reply #467 on: September 21, 2019, 05:27:04 PM »
Yes, demand does increase due to the fact that population continues to increase.  It's the RATE of increase that falls below expectations for growth, and that's what kills the investment because you need the constant growth to cover the interest on the investment.  That's why it is a Calculus problem.

What is the expectation for growth? According to CSIS, Rystad, WoodMac and Barclays, it is slowing to zero, and then going negative. I don't know what that means for who is covering what interest. Certainly if folks want less, less will be produced, and we have a different relationship for price as demand and production see-saw downwards. A good thing for the environment.

Quote from: RE
The production increases, but the profitability from that production is falling.  Episodes like this perform the function of a Goalie doing a Stick Save.  But eventually, too many Pucks are going to be flying at the Goalie's head, and he can't stop them all from reaching the net.

RE

So how does your idea work in the expected decreasing demand scenario that the think tanks are putting out there for discussion right now?

Offline RE

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🛢️ You’re Footing The Bill For Bankrupt Shale Drillers
« Reply #468 on: September 26, 2019, 11:24:39 AM »
Privatize the Profits, Socialize the Losses.

RE

https://oilprice.com/Energy/Energy-General/Youre-Footing-The-Bill-For-Bankrupt-Shale-Drillers.html

You’re Footing The Bill For Bankrupt Shale Drillers
By Nick Cunningham - Sep 25, 2019, 4:00 PM CDT


A wave of oil and gas wells abandoned by bankrupted drillers could cost the U.S. government hundreds of millions of dollars.

A new report from the U.S. Government Accountability Office (GAO) studied oil and gas wells drilled on federal lands, and found that the public could get stuck with a significant tab from companies that go out of business.

Inactive wells that have not been properly plugged present environmental threats, from methane leaks to surface, air and groundwater contamination. Reclaiming a well that goes offline involves plugging it, removing structures and revegetating that landscape.

On federal lands, the Bureau of Land Management (BLM) collects a bond upfront that can be returned to a driller after reclamation. If the well is not properly reclaimed at the end of its life, BLM uses the bond to pay for the cleanup.

But the problem is that the bond payments are often too low to cover the cost of reclamation. BLM regulations have minimum bond rates at $10,000 per lease, $25,000 for all wells in a state and $150,000 for all wells nationwide.

When a company abandons a well because it cannot afford to clean it up, the well becomes “orphaned,” and tends to fall to BLM. But the agency does not have the funds to handle a wave of orphaned wells because the bonds that drillers pay are too low. “Bonds held by BLM have not provided sufficient financial assurance to prevent orphaned oil and gas wells,” the GAO report found. For instance, GAO identified 89 new orphaned wells between July 2017 and April 2019, which could cost as much as $46 million to clean up.

More eye-opening was the fact that the agency identified nearly 3,000 wells that are at risk of becoming orphaned. Costs for reclaiming old wells vary widely, so much so that the GAO offered two scenarios: low-cost wells can cost $20,000 a piece, while high-costs wells can reach $145,000. For those 3,000 at-risk wells, the cleanup tab for the federal government could range from $46 million to $333 million.

Roughly 84 percent of bonds are likely too low to reclaim the wells to which they are linked. “Bonds generally do not reflect reclamation costs because most bonds are set at their regulatory minimum values, and these minimums have not been adjusted since the 1950s and 1960s to account for inflation,” GAO said. It can also be decades between when a bond is paid and reclamation is actually completed. Notably, the average bond that BLM has on hand has declined over the years on a per-well basis, from $2,207 per well in 2008 to $2,122 per well in 2018.
Related: The Largest Trading Busts In The History Of Oil

This may seem like a rather arcane problem, but it is significant for two reasons. First, the number of shale wells have proliferated in recent years, drilled at ever-increasing depths, which makes reclamation pricier. Second, the shale industry is indebted and the financial foundation could begin to crumble, leaving a growing mountain of orphaned wells for the government as companies go out of business. Already more than 190 shale E&Ps have gone bankrupt since 2015.

“I talk to those guys, all the fracking companies, on a daily basis. I'm very engaged in what they are doing with their business, and I completely believe that the current model is unsustainable,” Scott Forbes, vice president of the Lower 48 for Wood Mackenzie, told E&E News.

It is because of this heightened financial stress that concerns over a wave of orphaned wells are rising. As E&E News notes, New Mexico requires a bond of $250,000 for companies with over 100 wells, which only translates into $2,500 per well at best, a paltry figure compared to reclamation costs.

Ultimately, if the full cost of reclamation was required upfront, there could be a lot less drilling.

The GAO report came at the request of Rep. Raul Grijalva (D-NM) and Rep. Alan Lowenthal (D-CA), both of which come from states with abandoned wells. “The oil and gas industry’s boom-and-bust cycles can lead operators to drill wells when prices for oil and gas are high but can contribute to bankruptcies when prices are low,” the GAO wrote in a letter to the congressmen that accompanied the report.

GAO recommended the U.S. Congress grant BLM the authority to obtain funds from drillers to reclaim orphaned wells while also requiring the agency to develop a mechanism to do so. It also said that BLM should hike bond rates to reflect actual costs of cleanup.

Rep. Lowenthal introduced a bill last week that increased the minimum bond payment for federal lands.

By Nick Cunningham of Oilprice.com
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Offline BuddyJ

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Re: Fracker Debt Bubble
« Reply #469 on: September 26, 2019, 05:27:42 PM »
So this article really isn't about shale drillers going bankrupt and their wells being taken over by someone else after bankruptcy or whatnot, it is about orphaned wells? Orphaned wells have programs dedicated to handling them, and they are certainly too small. But that is a regulatory thing, and should have been cleaned up decades ago. Governmental and regulatory incompetence is the category this problem fits into.

Offline RE

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🛢️ Oil Giant Slashes Jobs Amid Shale Slowdown
« Reply #470 on: October 11, 2019, 03:40:18 PM »
https://oilprice.com/Energy/Energy-General/Oil-Giant-Slashes-Jobs-Amid-Shale-Slowdown.html

Oil Giant Slashes Jobs Amid Shale Slowdown
By Nick Cunningham - Oct 10, 2019, 4:00 PM CDT


Halliburton announced that it would lay off 650 workers across four U.S. states due to the slowdown in shale drilling.

The oilfield services giant blamed “local market conditions” for slashing payrolls. “Making this decision was not easy, nor taken lightly, but unfortunately it was necessary as we work to align our operations to reduced customer activity,” Halliburton said in a statement. The job cuts were concentrated in Colorado, New Mexico, North Dakota and Wyoming.

The cuts are not the first for Halliburton. Over the summer, the oilfield services company announced job cuts equivalent to 8 percent of its North American workforce. At the time, Halliburton CEO Jeff Miller said that the company would be “removing several layers of management” and that it would be “emphasizing a return on capital approach.” Notably, the company stacked idled equipment, as the market for oilfield services crashed amid a surplus of rigs and services.

In July, when Halliburton last cut jobs and sidelined equipment, investors cheered. “Kudos for being proactive on stacking equipment in this market versus fighting for share,” Angie Sedita of Goldman Sachs said to Halliburton CEO Jeff Miller on an earnings call. Halliburton’s share price soared by 9 percent on the news.

This time around, the stock bounce did not materialize. Sinking oil prices, a deeper decline in drilling activity and increasing skepticism from investors has put Halliburton – and other service companies – in a bind. Halliburton’s share price has fallen by more than half in the last 12 months.
Related: OPEC Chief Hints At Deeper Cuts In December

Pessimism is very apparent from both oil producers and the oilfield service companies. In the most recent quarterly survey from the Federal Reserve Bank of Dallas, anonymous comments from industry executives revealed a deep sense of anxiety. “U.S. oil production is about to fall significantly. The rig count has declined dramatically from one year ago (down 170 rigs), and our customers are not completing wells in order to save cash flow. This all equals a big shift down,” one executive said.

“Oversupply of hydraulic fracturing capacity and reduced activity by customers have put extreme pressure on pricing. Most hydraulic fracturing providers feel that the current pricing is unsustainable over the medium to long term,” another unnamed executive from an oilfield services company said.

The problem for the industry is that WTI is lower than it was a few months ago, and the prospect of a rebound is also questionable. The global economy continues to weaken, and successive cuts to demand forecasts are coming on a monthly basis. OPEC just lowered its demand numbers for the third month in a row, although only by a modest 40,000 bpd.

As Reuters notes, industrial demand has declined as the economy has weakened. Consumption of natural gas and diesel is off because of a recession sweeping over the manufacturing sector. U.S. oil production is not growing at the blistering rate that many analysts had expected, but it has flattened out at a time when demand has contracted.

The most important factor affecting this trajectory in the short run will be the outcome of the latest round of trade talks from the U.S. and China. At the time of this writing, there were mixed signals coming from both sides.
Related: Is This The Next $170 Billion Energy Industry In The US?

There is a bit of momentum for a modest trade deal that could stave off further tariffs. Trump said that he was set to meet with China’s vice premier on Friday, which raised speculation that there could be some sort of a breakthrough. At the same time, Chinese press said that there was no progress on negotiations. The Trump administration is also considering a more aggressive crackdown on Chinese companies and capital flows between the U.S. and China.

An accommodating and de-escalation could provide a jolt to oil prices, but because a grand bargain is extremely unlikely, it’s not clear that simply pushing off a planned hike in tariffs will be enough to rescue the deceleration in the global economy. For now, WTI is trading between $53 and $54 per barrel for November delivery.

Worse, oil futures for November 2020 are at just $50 per barrel, which is an indication that the market thinks things will only get worse next year. That is bad news for oil producers, and the oilfield service companies like Halliburton that support them.

By Nick Cunningham of Oilprice.com
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Offline RE

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🛢️ Is U.S. Shale Circling The Drain?
« Reply #471 on: October 28, 2019, 01:41:02 AM »

RE

https://oilprice.com/Energy/Crude-Oil/Is-US-Shale-Circling-The-Drain.html

Is U.S. Shale Circling The Drain?
By Tsvetana Paraskova - Oct 27, 2019, 4:00 PM CDT


‘Significant production slowdown’ is all around the headlines about the U.S. shale patch these days.

Yet, the headlines have often missed one growing problem in the U.S. oil industry—the abandoned, or ‘orphaned’ wells that bankrupt oil and gas operators leave behind on private, state, and federal land. With companies gone bust, it’s the state or the federal government that must pick up the tab for plugging those abandoned wells, cleaning up the sites, and restore lands to as close to their original natural states as possible. 

The money set aside for reclaiming ‘orphan wells’ is not nearly enough to cover all the costs. Therefore, the well reclamation process is slow and increases the liabilities of the state and federal agencies responsible for cleaning up abandoned wells. This raises the risks of increasing costs for the taxpayer and of environmental disasters waiting to happen if unplugged abandoned wells start to leak.

Before drilling, companies are required to pay bonds for wells reclamation in case the wells become orphan. But those bonds are insufficient to cover all the costs for reclaiming a well. Actually, estimates from the Western Organization of Resource Councils (WORC) show that bond amounts are often too low to cover fully the costs of plugging, removing equipment, cleaning up, and restoring the lands as close to their original state as possible.

The problem with orphan wells on state land is less acute than the one with abandoned wells on federal land. State legislatures can amend regulations to ask for higher bonding requirements from the industry, but the office responsible for cleaning up abandoned wells on federal land, the Bureau of Land Management (BLM), must ask Washington for changes in legislation and requirements.
Related: Pakistan’s New Energy Proposal Is A Double-Edged Sword

On the state level, most states in the West, including North Dakota, South Dakota, Alaska, and Colorado, have proposed significant increases in bonding requirements for oil and gas companies, WORC says. Montana and Wyoming are currently holding official discussions and oversight.

“Between an industry already prone to booms-and-busts and signs of economic slowdown, regulators and legislatures are working to make sure taxpayers are not on the hook for further cleanup of the growing amount of abandoned and ‘orphaned’ oil and gas wells,” WORC said.

Wyoming, for example, has had several thousand coal bed methane (CBM) wells orphaned by their owners since 2014 due to a plunge in natural gas prices, according to the Wyoming Oil and Gas Conservation Commission (WOGCC). Since 2014, there have been 5,775 wells orphaned, and the WOGCC has removed from the orphan well list 2,618 orphaned wells on state and private lands, the WOGCC said in a September update. Before 2014, there were around 500 orphaned wells documented over a twenty-year period, and all of those have been plugged and abandoned.

North Dakota wants to keep the orphan well problem in check and is working on new rules. With low oil prices, the number of North Dakota’s orphaned oil and gas wells has increased by 10 percent over the past two years to exceed 700, according to Bismarck Tribune.

But while states have more power in requiring higher upfront payments from drillers to ensure safe and swift well reclamation, BLM has little power to do anything with the federal land and legislation by itself. 

BLM was also found to have shortcomings in tracking the number of orphan wells on federal land and the liabilities those wells could incur, the U.S. Government Accountability Office (GAO) said last year.
Related: The End Of Syria’s “Pipeline War”

Last month, GAO said that BLM should address the risks from insufficient bonds to reclaim wells.

BLM updated its policy in November 2018, requiring field officers to review oil and gas bonds to determine whether the bond amount appropriately reflects the level of potential risk or liability.

But GAO recommended last month that Congress should consider giving BLM the authority to obtain funds from operators to reclaim orphaned wells and requiring BLM to implement a mechanism to do so.

BLM, however, said that it lacks authority to develop a mechanism to obtain funds, so GAO changed the recommendation to BLM to a matter for Congressional consideration.

BLM says that it aims to improve its orphan well data tracking.

“Under the Trump Administration, BLM has taken action to both better track orphan wells and get proper accounting of them on our online platform,” a spokesman for the Interior wrote in an email to E&E News’ Heather Richards, adding that BLM invests in improving the process for dealing with idle and orphaned wells.   

Across the United States, the number of orphan wells could further rise, due to the expected decline in U.S. shale production growth, and to smaller drillers increasingly constrained in their access to capital. The recent drilling of longer laterals and the increased size of the wells could also mean that costs for reclamation of such wells, if they become orphaned, could be much higher than recent averages.

By Tsvetana Paraskova for Oilprice.com
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Offline RE

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🛢️ A Death Sentence For Small Oil & Gas Drillers
« Reply #472 on: October 29, 2019, 03:23:00 AM »
Ask not for Whom the Bell Tolls.

It Tolls for the Collapse of Industrial Civilization.

Quote from: John Donne
Devotions Upon Emergent Occasions

MEDITATION XVII.


NUNC LENTO SONITU DICUNT, MORIERIS.

Now this bell tolling softly for another,
says to me, Thou must die.


PERCHANCE he for whom this bell tolls may be so ill as that he knows not it tolls for him.  And perchance I may think myself so much better than I am, as that they who are about me, and see my state, may have caused it to toll for me, and I know not that.  The church is catholic, universal, so are all her actions; all that she does, belongs to all.  When she baptizes a child, that action concerns me; for that child is thereby connected to that head which is my head too, and ingraffed into that body, whereof I am a member.  And when she buries a man, that action concerns me; all mankind is of one author, and is one volume; when one man dies, one chapter is not torn out of the book, but translated into a better language; and every chapter must be so translated; God employs several translators; some pieces are translated by age, some by sickness, some by war, some by justice; but God's hand is in every translation, and his hand shall bind up all our scattered leaves again, for that library where every book shall lie open to one another; as therefore the bell that rings to a sermon, calls not upon the preacher only, but upon the congregation to come; so this bell calls us all: but how much more me, who am brought so near the door by this sickness.

There was a contention as far as a suit (in which, piety and dignity, religion and estimation, were mingled) which of the religious orders should ring to prayers first in the morning; and it was determined, that they should ring first that rose earliest.  If we understand aright the dignity of this bell, that tolls for our evening prayer, we would be glad to make it ours, by rising early, in that application, that it might be ours as well as his, whose indeed it is.  The bell doth toll for him, that thinks it doth; and though it intermit again, yet from that minute, that that occasion wrought upon him, he is united to God.  Who casts not up his eye to the sun when it rises?  But who takes off his eye from a comet, when that breaks out? who bends not his ear to any bell, which upon any occasion rings?  But who can remove it from that bell, which is passing a piece of himself out of this world?

No man is an island,  entire of itself; every man is a piece of the continent, a part of the main; if a clod be washed away by the sea, Europe is the less, as well as if a promontory were, as well as if a manor of thy friend's or of thine own were;  any man's death diminishes me, because I am involved in mankind, and therefore never send to know for whom the bell tolls; it tolls for thee.

Neither can we call this a begging of misery, or a borrowing of misery, as though we were not miserable enough of ourselves, but must fetch in more from the next house, in taking upon us the misery of our neighbors.  Truly it were an excusable covetousness if we did; for affliction is a treasure, and scarce any man hath enough of it.  No man hath afflicion enough, that is not matured and ripened by it, and made fit for God by that affliction.  If a man carry treasure in bullion or in a wedge of gold, and have none coined into current moneys, his treasure will not defray him as he travels.  Tribulation is treasure in the nature of it, but it is not current money in the use of it, except we get nearer and nearer our home, heaven, by it.  Another may be sick too, and sick to death, and this affliction may lie in his bowels, as gold in a mine, and be of no use to him; but this bell that tells me of his affliction, digs out, and applies that gold to me: if by this consideration of another's danger, I take mine own into contemplation, and so secure myself, by making my recourse to my God, who is our only security.

RE

https://oilprice.com/Latest-Energy-News/World-News/A-Death-Sentence-For-Small-Oil-Gas-Drillers.html

A Death Sentence For Small Oil & Gas Drillers
By Tsvetana Paraskova - Oct 28, 2019, 1:30 PM CDT Drilling


Some of the largest banks financing U.S. oil and gas drillers have recently reduced their expectations for oil and natural gas prices, determining the value of companies’ reserves and loans that they can take against those reserves. 

Wells Fargo, JP Morgan Chase, and Royal Bank of Canada, among others, have reduced the value of reserves of oil and gas companies, according to more than a dozen banking and industry sources familiar with the borrowing base redeterminations.

The value of reserves estimated by banks serves as the basis for many small oil and gas firms to get funding for their drilling activity and operations. And in recent months, in many cases, this is the only source of funding that many of them can get because the equity and bond markets are practically closed for small oil and gas firms right now.

With the lowered value of reserves, drillers now face an even more restricted access to capital than in previous months.

In the fall 2019 survey carried out in September by Haynes and Boone, for the first time since 2016, the majority of respondents expected borrowing bases to decrease in the redetermination season this month.

According to Reuters’ sources, the banks have cut their expectations for both natural gas and oil prices compared to the previous redetermination season this past spring. Natural gas price forecasts were slashed by around 20 percent, which industry sources say would mean a 15-30 percent cut in the size of loans. Banks now see natural gas prices at US$2.00-2.35 per million British thermal units (MMBtu) over the next 12 months. Oil prices are now US$1 to US$2 a barrel lower than estimated in the spring redetermination, according to the Reuters sources.

Related: Trump’s Latest Trade War Move Sends Oil Tanking

The lower borrowing base for loans could mean additional pressure on smaller U.S. drillers, as other forms of financing are not accessible now.

“Utilization of debt and equity capital markets as a source of capital for producers has gone from small in the spring 2019 survey to minuscule in the fall 2019 survey,” Haynes and Boone said in its survey just ahead of a of the redetermination season.

“E&P companies will remain boxed in on capital sources for a while. Public equity markets – a primary source of capital for upstream oil and gas companies before 2018 – will not reopen until 2021 or later,” Haynes and Boone noted.

By Tsvetana Paraskova for Oilprice.com
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Offline RE

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🛢️ Natural Gas Is Fighting For Survival
« Reply #473 on: November 13, 2019, 01:55:39 AM »
https://oilprice.com/Energy/Energy-General/Natural-Gas-Is-Fighting-For-Survivial.html

Natural Gas Is Fighting For Survival
By Irina Slav - Nov 11, 2019, 3:00 PM CST


Natural gas has been hailed as the bridge fuel between the fossil fuel economy of the past and present, and the renewables economy of the future. With renewable energy costs falling steadily and considerably, some are beginning to worry that gas is facing increasingly fierce competition amid fast-growing supply.

A recent couple of reports from a nonprofit organization promoting renewable energy suggested solar and wind, plus storage, could become cheaper than most gas-fired power plants in the United States in just 16 years.

“We find that the natural gas bridge is likely already behind us,” one of the reports said, “and that continued investment in announced gas projects risks creating tens of billions of dollars in stranded costs by the mid-2030s, when new gas plants and pipelines will rapidly become uneconomic as clean energy costs continue to fall.”

This would certainly be impressive. Solar and wind costs have indeed been falling steadily but storage is not normally included in these falling costs. Whether or not the forecast is overly optimistic remains to be seen but it does seem that renewables are gaining on gas as fuel for power plants: probably the biggest arena where fossil fuels are fighting renewables.
Related: The World’s Biggest EV Market Braces For Another Crippling Blow

The second problem for natural gas is methane emissions. The main component of natural gas is a much more potent greenhouse gas than the notorious carbon dioxide and it has been garnering increasing attention from regulators and investors alike. Oil and gas investors have had a lot to worry about recently with the crusade against fossil fuels winning stronger support among governments. Investors now need assurances that the industry is strong enough to survive the double offensive from renewables and regulations.

One way to give them these assurances is by lowering costs to match the cost decline in renewables. The gas industry, at least in the U.S., has already proved it can do it, albeit unwillingly. Several times this year benchmark spot prices for natural gas in the country fell below zero because of oversupply. Renewables have a long way to go to fall into negative territory without even trying.

But such price swings aside, the gas industry both in the U.S. and elsewhere is actively looking for ways to make their product more competitive. After all, competition within the industry is intensifying, too, as global gas demand rises and companies and governments rush to respond to this rising demand.
Related: Canadian Oil Prices Crash After Keystone Spill

So, one way of gaining an advantage over competitors is by lowering costs and improving production efficiency, as Nick Butler, the chair of The Policy Institute at King’s College London wrote in a recent column for The Financial Times.

Another way is by becoming renewable. Methane collected from waste and manure - a renewable sort of natural gas - is a popular source of energy in Europe, but in the United States, it has yet to establish itself as a viable alternative to fossil fuel gas. Thanks to tax incentives and improving technologies, however, companies are making increasingly wider inroads into this segment of the renewable energy industry. This would go a long way towards solving the methane emissions problem and it would certainly improve natural gas’s reputation. As for when renewables will take over, based on projections about a continued strong rise in global gas demand, chances are it will be a while.

By Irina Slav for Oilprice.com
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