Natural Gas

IEEFA Research

IEEFA U.S.: Shortage of high-quality sites threatens future Bakken oil and gas production

IEEFA U.S.: Shortage of high-quality sites threatens future Bakken oil and gas production

Decline in top-tier wells forces shift to less-productive Bakken oil and gas regions

November 3, 2021 (IEEFA) — A shortage of high-quality drilling sites poses a long-term risk to oil production in the Bakken formation, according to an analysis by the Institute for Energy Economics and Financial Analysis (IEEFA). Since the Bakken boom began 13 years ago, producers have focused on core areas where horizontal wells provide easier […]

IEEFA Update: Santos won’t solve the problem of Barossa LNG with carbon capture and storage

IEEFA Update: Santos won’t solve the problem of Barossa LNG with carbon capture and storage

Leaving the ‘dirty’ gas in the ground might now be the best course of action

20 October 2021 (IEEFA Australia): Even if it employed carbon capture and storage, Barossa gas will continue to release financially risky carbon dioxide emissions onsite, onshore and across the supply chain, making it one of the more expensive and dirtiest gas projects in the world, finds a new report from the Institute for Energy Economics […]

IEEFA U.S.: Skyrocketing plastics prices a major concern for public health, economy

IEEFA U.S.: Skyrocketing plastics prices a major concern for public health, economy

An ‘essential industry’ to the U.S. economy runs in the dark

October 18, 2021 (IEEFA) — Despite its growing importance to the U.S. economy, the nation’s plastics industry remains a heavily concentrated sector taking advantage of an opaque, unregulated price-setting mechanism to bolster profits for major oil and gas companies, as well as plastic producers. The sector, which has increased prices throughout the year, was deemed […]

IEEFA: U.S. push for LNG in the Philippines paints unrealistic picture of global prices and market viability

IEEFA: U.S. push for LNG in the Philippines paints unrealistic picture of global prices and market viability

Overly optimistic claims about financial, economic and environmental benefits of LNG

Sept. 23, 2021 (IEEFA) – A recent white paper sponsored by the U.S. Agency for International Development (USAID) promotes the benefits of liquefied natural gas in the Philippines. The report, however, is based on questionable assumptions about global LNG prices, long-term demand and market viability of U.S. exports to price-sensitive countries in Asia, according to […]

and September 23, 2021 Read More →
IEEFA: Accepting gas power plants as sustainable investments in Asian taxonomies heightens greenwash risk

IEEFA: Accepting gas power plants as sustainable investments in Asian taxonomies heightens greenwash risk

Accommodating the gas sector risks diluting standards and discouraging new pools of green capital

21 September 2021 (IEEFA Asia): Incorporating gas-powered generation as a sustainable investment into Asian taxonomies could have unintended consequences, finds a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). Doing so could lock Asia into a high-emitting future while also posing a credibility and greenwashing problem that Asian policymakers and ESG […]

and September 21, 2021 Read More →
IEEFA: $5.1 billion spend on offshore gas exploration until 2027 could have fostered 2.5GW of renewable capacity and 4,800 jobs

IEEFA: $5.1 billion spend on offshore gas exploration until 2027 could have fostered 2.5GW of renewable capacity and 4,800 jobs

The government is increasing issuance of gas exploration permits in the offshore sector ignoring risks imposed by global decarbonisation

20 September 2021 (IEEFA Australia): Increasing issuance of exploration permits over production, the Australian government has given the green light to oil and gas giants including Santos and Woodside to potentially spend $AUD5.1 billion throughout the next six years on risky offshore exploration activities despite industry-low success rates and the global energy transition, finds a […]

IEEFA U.S.: LNG newcomer Tellurian asks investors to gamble on Driftwood project

IEEFA U.S.: LNG newcomer Tellurian asks investors to gamble on Driftwood project

Tellurian’s history, finances and new LNG deals raise questions about profitability

August 31, 2021 (IEEFA) — At first glance, Tellurian Inc.’s proposed Driftwood liquefied natural gas (LNG) project looks like a cause for optimism for the U.S. LNG market after a dismal 2020 saw demand and prices plummet while the COVID-19 pandemic raged. However, a closer look at Tellurian’s history, finances and structure of its newly […]

IEEFA: The economics of Indonesia’s diesel power plant to gas conversion plan are problematic

IEEFA: The economics of Indonesia’s diesel power plant to gas conversion plan are problematic

Deploying new small-scale LNG is an uphill battle for PGN

26 August (IEEFA Indonesia): Indonesian gas is currently in a precarious position, where the government needs to find new domestic demand to absorb surplus gas coming into the market amidst expiring export contracts. According to the Institute for Energy Economics and Financial Analysis’ (IEEFA) new report, small-scale liquefied natural gas (ssLNG) has been re-proposed in […]

IEEFA: Despite strong Q2, ExxonMobil upstream continues to underwhelm

IEEFA: Despite strong Q2, ExxonMobil upstream continues to underwhelm

Exxon’s U.S. upstream division makes up little ground in the Permian Basin

August 9, 2021 (IEEFA) – ExxonMobil’s U.S. upstream operations have yet to regain their footing after a decade of turmoil. While the second quarter of 2021 was the company’s best in years, ExxonMobil has invested $61.5 billion on U.S. upstream capital projects since 2013, only to report $5.3 billion in cumulative losses. These losses may […]

More News and Commentary

Shell announces it will not develop Cambo field in British North Sea

Reuters: Royal Dutch Shell (RDSa.L) said on Thursday it had scrapped plans to develop the Cambo oilfield in the British North Sea, which became a lightning rod for climate activists seeking to halt the development of new oil and gas resources. Following “comprehensive screening” of the Cambo field, Shell “concluded the economic case for investment […]

December 3, 2021 Read More →

Engine No. 1: ExxonMobil “lost its social license,” battled transition

Reuters: A failing governance structure propagated by a management without a strategy for the energy transition was behind Engine No. 1’s quest to bring independence to ExxonMobil’s board, Chris James, founder of the U.S. hedge fund told Reuters. Governments, companies and individuals are taking steps to cut their carbon footprints and enable the energy transition […]

December 3, 2021 Read More →

Gas deliveries to U.S. LNG export terminals hit record in November

S&P Capital IQ ($): Natural gas deliveries to U.S. LNG export terminals surged to record levels in the waning days of November, topping 12 Bcf/d as strong global gas demand continued to incentivize operators to run their facilities at full bore. Total feedgas deliveries to the six major operating U.S. LNG export facilities hit about […]

December 3, 2021 Read More →

Developers scrap Jordan Cove liquefied natural gas export facility

S&P Capital IQ ($): Developers of the proposed Jordan Cove LNG export facility in Oregon told federal energy regulators they will not move forward with the project, confirming the end of an effort that has stalled for years amid regulatory and commercial challenges. Jordan Cove Energy Project LP, a subsidiary of Canada’s Pembina Pipeline Corp., […]

December 2, 2021 Read More →
IEEFA Update: A national EV policy and other steps towards electrifying Australia

IEEFA Update: A national EV policy and other steps towards electrifying Australia

The sun will power much of our future – policy and regulation for electrifying Australia must embrace distributed energy resources

Amid global coal and gas price volatility, electrifying Australia via rooftop solar is the clear winner in the race to lowest cost energy. Critics who claimed economies of scale were lacking when Australia started subsidising household rooftop solar, maintaining the focus should be on large-scale solar, overlooked the economics of co-location generation and load. Put […]

Shell mulls return to Libya with solar project, new oil and gas fields

Reuters: Royal Dutch Shell is considering a return to Libya with a plan to develop new oil and gas fields and infrastructure, as well as a solar project, two sources said, a decade after exiting the North African country because of unrest. The plan, details of which were seen by Reuters, marks a rare new […]

November 30, 2021 Read More →

German coalition plans renewables expansion, faster coal exit

PV Tech: Germany’s new three-way coalition government of the SDP, Green and FDP parties have set guidelines for future energy policy in the country which include an expansion of planned renewable capacity and an accelerated phase out of coal power. They have agreed to double Germany’s solar target to 200GW by 2030, increase the country’s […]

November 29, 2021 Read More →

Tokyo Gas plans to spend $17.5 billion on clean fuels by 2030

Reuters: Japanese city gas distributor Tokyo Gas Co Ltd (9531.T) said on Friday it will spend 2 trillion yen ($17.5 billion) on cleaner fuels, such as hydrogen, and renewable power with the aim of doubling its profit to 200 billion yen by 2030. “We need to accelerate our actions in the face of a growing […]

November 29, 2021 Read More →

Natural gas use falls to record low levels in South Australia grid

Renew Economy: The South Australian grid has witnessed yet another step change in its world-leading transition to 100 per cent renewables, with the market operator dialling the output of the state’s gas generators down to unprecedented low levels. South Australia often runs at more than 100 per cent renewables, with the excess supply sent to […]

November 29, 2021 Read More →

IEEFA video: Are gas and LNG investments safe?

Increasing price and demand volatility, policy change, competition and stranded asset risk threaten gas and LNG investments

Are gas investments safe? IEEFA energy finance analyst Bruce Robertson shows how risks are mounting in the sector and warns that these will result in financial losses and stranded assets. This pressure comes from many directions including climate change, energy and financial policy shifts, market competition, fluctuating demand, price volatility and technological innovation, including decarbonization […]

November 29, 2021 Read More →