{"id":11558,"date":"2014-11-29T05:57:25","date_gmt":"2014-11-29T10:57:25","guid":{"rendered":"http:\/\/www.l-a-k-e.org\/blog\/?p=11558"},"modified":"2014-11-29T05:59:29","modified_gmt":"2014-11-29T10:59:29","slug":"opec-v-fracking-russia-to-win-u-s-lng-export-to-lose","status":"publish","type":"post","link":"http:\/\/www.l-a-k-e.org\/blog\/2014\/11\/opec-v-fracking-russia-to-win-u-s-lng-export-to-lose.html","title":{"rendered":"OPEC v. fracking: Russia to win, U.S. LNG export to lose"},"content":{"rendered":"

\r\nOPEC just pushed down oil and gas prices,\r\nand the main beneficiary will be Russia.\r\n\r\n\"300x166<\/a>\r\nU.S. and other sanctions to punish Russia for invading Ukraine\r\nalready pushed the ruble down, which makes Russian fracking\r\nless exposed to this price drop.\r\nNatural gas prices are falling with oil prices.\r\nSo a big winner could be Siberian natural gas fracking for China<\/a>.\r\nWhich could nip U.S. LNG exports at their budding export terminals.\r\nSince LNG export is the most profitable market for fracked methane,\r\nthe pipeline craze could go bust.\r\nAnd that could help the U.S. get on with cheaper, faster, safer, and far\r\ncleaner solar power.\r\n

\r\nWill Kennedy and Jillian Ward, Bloomberg, 27 November 2014,\r\n\r\nOPEC Policy Ensures U.S. Shale Crash, Russian Tycoon Says<\/a>,\r\n\r\n\r\n

\r\n

\r\nAmerican producers risk becoming victims of their own success. At\r\ntoday’s prices of just over $70 a barrel, drilling is close to\r\nbecoming unprofitable for some explorers, Leonid Fedun, vice\r\npresident and board member at OAO Lukoil (LKOD), said in an\r\ninterview in London.\r\n<\/p>\r\n

\r\n“In 2016, when OPEC completes this objective of cleaning up\r\nthe American marginal market, the oil price will start growing\r\nagain,” said Fedun, who’s made a fortune of more than $4\r\nbillion in the oil business, according to data compiled by\r\nBloomberg. “The shale boom is on a par with the dot-com boom.\r\nThe strong players will remain, the weak ones will vanish.”\r\n<\/p>\r\n<\/blockquote>\r\n

\r\n\r\n\"600x332<\/a>\r\n
\r\nNYSE ARCA OIL & GAS INDEX (INDEXNYSEGIS:XOI)\r\n<\/p>\r\n

\r\nMatt Egan, CNN Money, 28 November 2014,\r\n\r\nOPEC’s message to US shale: Drop dead<\/a>\r\n

\r\n

\r\nThe OPEC move has clearly spooked investors, who sent energy stocks\r\nlike Halliburton (HAL), Helmerich & Payne (HP) and Schlumberger\r\n(SLB) plummeting on Friday. (U.S. markets were closed for\r\nThanksgiving Day on Thursday). oil price drop\r\n<\/p>\r\n

\r\n“I think there will be increased scrutiny of the balance sheets of\r\nthe exploration and production companies. You’ll see some of the\r\nweaker players fall out,” said Tamar Essner, energy analyst at\r\nNasdaq Advisory Services.\r\n<\/p>\r\n<\/blockquote>\r\n

\r\nHm, weaker players like\r\nFPL dabbling in Oklahoma fracking<\/a>?\r\nThe same FPL that co-owns Sabal Trail Transmission with Spectra Energy?\r\n

\r\n -jsq\r\n<\/p>","protected":false},"excerpt":{"rendered":"OPEC just pushed down oil and gas prices, and the main beneficiary will be Russia. U.S. and other sanctions to punish Russia for invading Ukraine already pushed the ruble down, which makes Russian fracking less exposed to this price drop. Natural gas prices are falling with oil prices. So a big winner could be Siberian […]","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_links_to":"","_links_to_target":""},"categories":[14,6124,559],"tags":[3906,8085,8704,1763,308,8701,8702,8086,8088,12,7,8087,562,8782,8081,8089,8080,8083,5702,6597,2457,8084,6966,6,8082],"class_list":["post-11558","post","type-post","status-publish","format-standard","hentry","category-economy","category-natural-gas-2","category-oil","tag-bloomberg","tag-dotcom-boom","tag-economy","tag-fpl","tag-fracking","tag-georgia","tag-lake","tag-lenid-fedun","tag-lkod","tag-lowndes-area-knowledge-exchange","tag-lowndes-county","tag-lukoil","tag-natural-gas","tag-oil","tag-oil-price","tag-oklahoma","tag-opec","tag-ruble","tag-russia","tag-sabal-trail-transmission","tag-saudi-arabia","tag-shale-bom","tag-spectra-energy","tag-valdosta","tag-venezuela"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p585fK-30q","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts\/11558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/comments?post=11558"}],"version-history":[{"count":2,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts\/11558\/revisions"}],"predecessor-version":[{"id":11560,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts\/11558\/revisions\/11560"}],"wp:attachment":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/media?parent=11558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/categories?post=11558"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/tags?post=11558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}