MY-CPE Insights’ Post

Chevron’s $1B Gas Deal with Tokyo Gas: A Strategic Shift in Global Energy Chevron is in advanced talks to sell its natural gas assets in East Texas and Louisiana to Tokyo Gas, marking a $1 billion deal that could redefine U.S.-Japan energy relations. This move is part of Chevron’s strategy to focus on high-return ventures, while Tokyo Gas secures a stable supply of American natural gas to support Japan’s energy needs. What does this mean for global energy dynamics? Dive into our latest blog to explore the strategic motivations behind this deal, the impact on both companies and why this partnership could shape the future of international energy alliances | https://bit.ly/484ZOHB #chevron #tokyogas #naturalgas #globalenergy #energysecurity #texasgas #haynesvilleshale #strategicpartnership #energytransition #chevronstrategy

I'll focus on the Natural Gas Market for my last post on the Daniel Energy Partners Thrive Conference. With natural gas prices below $2.00, many operators & the companies that service them are making difficult decisions about their business. Before the conference, Chesapeake Energy announced they were reducing capex guidance for 2024 and will cut production by 20% from its Q4,2023 levels. Ascent Resources agreed with the approach Chesapeake is taking. Will Su from BlackRock kicked off the conference, stating that natural gas production shut-ins should happen to stabilize the market and that LNG exports will be the savior for demand. He recognized that anticipatory drilling & supply doesn't work for commodity markets. Ascent Resources & Aethon Energy recognized the importance of hedging for their operations, with the former having 80% of their production hedged above $3.50. Large LNG projects in the Gulf will impact demand starting in 2025, though transport availability could affect exports. Encino Energy highlighted that Haynesville and Eagle Ford would benefit more from LNG due to the better regulatory environment in Texas for additional pipelines. Ascent Resources pointed out that production in the North East wouldn't contribute to exports unless a terminal is accessible on the East Coast. M&A has been less prevalent in the gas markets, but Ascent Resources suspects it is on a different timeline from the Permian. More deals similar to the Tokyo Gas America Ltd.+ROCKCLIFF ENERGY and Southwestern Energy + Chesapeake Energy are expected. This summary is the fifth post in this series and finishes what I heard at the conference. I hope it brought you some value; thanks for reading!

U.S. natural gas producers prepare for rising demand, driven by the growing need for power in data centers. Executives focus on securing supply deals in the Permian Basin, expecting a tighter gas market. #Energy #NaturalGas

#Rystad Analyst Explains This Week's #GasMarket Moves A Rystad Energy gas and LNG market update from analyst Christoph Halser, which was sent to Rigzone late Thursday by the Rystad team, looked at some of this week’s gas market moves, highlighting changes in the Title Transfer Facility (TTF), Northeast Asian spot LNG assessments, and the Henry Hub price. https://buff.ly/4cmzj0u #EntraConsulting #oil #gas #energy #shale #renewableenergy #petroleo #energia #electricidad #energiasrenovables

A Rystad Energy gas and LNG market update from analyst Christoph Halser, which was sent to Rigzone late Thursday by the Rystad team, looked at some of this week's gas market moves. #oilgas #energynews #gas

Modeling US gas supply and demand can be the stuff of nightmares. It is complex, as gas is the 'balancing line' in broader global energy models. Yet our new outlook is the stuff of dreams, with US gas demand rising +2.4 bcfd pa through 2035, requiring a 3% CAGR from US shale gas basins, and we argue that the balance of probabilities increasingly lies to the upside. Today's 13-page report evaluates US gas use in power, for LNG, industry, residential/commercial heat. And most interestingly, what if an oil price pullback derails the +1bcfd pa Permian growth in our numbers above?

HOUSTON — ExxonMobil boss Darren Woods is watching progression of geothermal technology as the oil and gas giant mulls adding more low-carbon areas to its portfolio. The big picture: Woods said there are many technical challenges and cost hurdles, and Exxon isn't "actively pursuing" geothermal at the moment. But he added: -- "We're keeping a very close eye on it, recognizing there is a very strong alignment and synergies with what we already know how to do." -- It's "something that you could see in the future if we found...the right economics and an advantage that we could bring." #geothermal #oilandgas #sustainability #netzero #global #lowcarbon #renewables Article ---> https://lnkd.in/gHdG8-iY

@EnergyQuest has just released its annual review of the WA gas market: EnergyQuest, West Coast Gas Outlook 2024 – Calm before the storm?, shows that WA’s domestic gas market is likely to see significant supply shortfalls from 2029.  The West Coast Gas Outlook 2024 shows the WA Government didn’t need to make major changes to its Domestic Gas Policy to ensure sufficient domestic gas supply over the next four years, but we are in the calm before the storm and changes to the Policy are on the cards from 2029.   Gas supply into the 2030s will be important as WA’s large gas users are unlikely to reduce gas use over the next decade. Gas is the only option for many users, and while low emissions alternatives are under development they are unlikely to be available or implemented in the next decade. The WA Government’s policy to close coal fired power generation is also likely to add significantly to demand as domestic gas supply peaks and starts to decline.    New supply from the Scarborough project and Perth Basin will be important in coming years, but beyond those projects there aren’t many options for increasing domestic supply other than to rely even more on LNG exporters.   Developing new supply is difficult as WA, and Australia more broadly, has low exploration levels, and there is a lack of undeveloped gas resources not linked to LNG projects. Reducing demand is difficult as doing so in the next decade would likely involve project closures due to a lack of alternatives. Developing new LNG resources with new domestic supply obligations could make a major difference but has become difficult and uncertain in Australia. The North West Shelf, which has for decades underpinned WA’s gas supply, is in decline. https://lnkd.in/g346TBE9

Energy executives say they are looking past current ultra-cheap gas prices and betting on a coming wave of new liquefied natural gas (LNG) plants to lift demand - and prices - for the fuel. Natural gas prices have fallen by one-third this year, undercut by a warmer winter, outages at #LNG facilities and higher-than-expected output. The growth in solar and wind power and a pause on new U.S. LNG export permit reviews also have clouded the outlook for future gas demand. New pipelines and #LNG processing plants would allow the U.S. to export the gas now clogging those West Texas lines and supply sustained energy while sun and #wind power grow. #China and #India are moving away from coal to natural gas for electric power, and #Europe has turned to the U.S. to replace #Russian #pipeline gas. https://lnkd.in/e2qtHeSW

Interestingly, ExxonMobil is looking at geothermal. In Western Canada, we have Terrapin Geothermics Alberta No. 1, Tuh Deh Kah Geothermal (was Clarke Lake in NE BC), FutEra Power Corp. Swan Hills Geothermal, E2E Energy Solutions Inc. and Rainbow Lake Geothermal, DEEP Earth Energy Production in SE Saskatchewan. The nice thing about geothermal is once it is drilled and the ORC infrastructure is installed there are minimal costs. Tesseral AI had planned to work with Petrolern on developing the technology to convert abandoned wells to geothermal wells. There is a hotspot in Alberta that makes geothermal interesting but we did not have the economics (NPV or IRR) to show its value. Tesseral AI Duplex Wave Migration could be used to understand fractures in the subsurface for geothermal. It is something Tesseral AI is still interested in along with white hydrogen. Had an interesting conversation with someone who said that white hydrogen is linked to geothermal. We are developing with Avalio about developing white hydrogen. Part of this is Tesseral AI wants to be involved with the development of low-carbon energy in what we do. The other part of this is what I am doing with my MBA which elements of it are about sustainability.