IEEJ and EPRINC Commentary of the Future of Asian LNGAs the 7th Annual LNG Producer Consumer Conference opens in Nagoya, Japan, Masakazu Toyoda, CEO of the Institute of Energy Economics Japan (IEEJ) and Lucian Pugliaresi, President of the Energy Policy Research Foundation, Inc (EPRINC) outlined the important role of U.S.-Japan cooperation in meeting rising Asian LNG demand with U.S. shale gas exports. Their views appear in two separate articles published in the Nikkei Asian Review and the Japan Times.
IEEJ and EPRINC Release 2018 Assessment on the Future of Asian LNG
The Institute of Energy Economics Japan (IEEJ) and EPRINC have published a follow-on assessment to their 2017 joint report on the future role of liquefied natural gas (LNG) in Asian power and fuel markets. This second year of our joint effort has taken a more in-depth evaluation of trends and longer-term uncertainties in Asian natural gas markets and the potential role of U.S. LNG exports in serving those markets. The joint research findings were presented at the 7th Annual Producer Consumer LNG Conference held in Nagoya, Japan on October 22, 2018. The event was attended by energy ministers, government officials, and industry representatives from the entire LNG value chain.
A copy of the 2018 joint report can be found here.
EPRINC and IEEJ Host Workshop: “Future of Asian LNG Part Two, The Road to Nagoya”On September 5th, 2018, EPRINC co-hosted the third workshop in the 2018 “Future of Asian LNG” series at the Willard InterContinental Hotel in Washington D.C. IEEJ and EPRINC are in the second year of a joint assessment of the future role of LNG in Asian power and fuel markets. Among the more important objectives of this joint effort are identifying recent trends and longer-term uncertainties in Asian natural gas markets and the potential role of U.S. LNG exports in serving those markets. The final workshop in the 2018 program included presentations and discussion on the U.S. LNG value chain, opportunities and challenges for financing the expansion of U.S. LNG exports and regasification receiving facilities in Asia, and prospects for expansion of natural gas storage and LNG bunker facilities, among other topics.The workshop presentations and accompanying discussion will contribute to the final joint IEEJ-EPRINC report and recommendations. The findings and recommendations will be presented at the 7th Annual Producer Consumer Conference on October 22, 2018 in Nagoya, Japan.
Lucian Pugliaresi Delivers LNG Briefing at the Embassy of Panama
On August 2, Lucian Pugliaresi met with officials at the Embassy of Panama to present on the developments of the LNG industry. A link to the presentation can be found here.
The Permian Basin Produces Gas, Too
This report by EPRINC Non-Resident Fellow Trisha Curtis is part of the Energy Policy Research Foundation’s multi-year research program evaluating the scale and scope of the North American petroleum renaissance. As U.S. producers expand production to meet domestic requirements and the rapidly growing market for pipeline exports and Liquefied Natural Gas (LNG), it is essential that policy makers have a full understanding of the sustainability of the U.S. natural gas production platform. This report addresses the range of challenges and opportunities for expanding U.S. production of natural gas for both domestic uses and export markets through an in depth look at North America’s most prolific oil and gas basin, the Permian. The report can be found here.
Mexico’s Role In Sustaining the North American Petroleum Renaissance
Non-resident fellow Emily Medina has produced a report on Mexico as part of the Energy Policy Research Foundation’s multi-year research program evaluating the scale and scope of the North American petroleum renaissance. As U.S. producers expand production to meet domestic requirements and the rapidly growing market for pipeline exports and Liquefied Natural Gas (LNG), it is essential that policy makers have a full understanding of the sustainability of the U.S. natural gas production platform. The report covers the characteristics of the Mexican market for that natural gas as well as the challenges and opportunities that Mexico’s evolving energy sector faces as it reacts to current market trends. Emily’s report can be found here.
EPRINC’s Emily Medina Co-Authors Op-Ed in The Hill on Mexican Energy and the Election
EPRINC’s Emily Medina commented recently in The Hill on the threat to Mexican energy reform posed by AMLO’s election to president. Her op-ed can be found here.
The Homeland Threat to Affordable U.S. Energy
Lucian Pugliaresi penned an Op Ed in The Hill on the pending legal action by local California governments claiming that U.S. oil companies have created a nuisance by knowingly causing harm to the future of human life and property. He points out that missing from the list of defendants is the federal government which had an active and aggressive program, spanning Democrat and Republican, to promote and expand domestic oil and gas production. A copy of the Op Ed can be found here.
EPRINC Welcomes Emily Medina as a non-resident Fellow
EPRINC is happy to welcome Emily Medina as a non-resident fellow at EPRINC as we expand our research and outreach programs on U.S.-Mexican energy developments. Born and raised in Mexico, she has experience working with both the private and public sectors on important energy matters. More on Emily’s experience can be found here.
Hedging Haircuts and Big Basis Moves
EPRINC trustee Ben Montalbano and non-Resident Fellow Trisha Curtis, both co-founders of PetroNerds, have just completed an assessment of oil hedging positions of 25 major oil producers in the Permian Basin. Hedging is a valuable tool for distributing risk and allowing producers to protect revenue streams from price volatility. Hedges protect producers revenues when oil prices fall, but also limit gains when prices rise. In addition, when oil prices rise it may limit the supply response if a large volume of unconventional production is hedged. Ben and Trisha’s assessment shows the percent of total production that producers hedge varies, but heading into Q1of 2018 producers hedged about 20% of total output. A copy of their assessment can be found here.
On April 19, 2018, the Energy Policy Research Foundation Inc. held a workshop at the Willard Hotel on the on the scale and prospective growth of the North American natural gas production platform. The workshop participants provided essential foundation information and analysis to expand our understanding of the role of U.S. natural gas as a supply source to meet both domestic requirements and to serve export markets. As EPRINC begins the second year of our joint project with the Institute of Energy Economics Japan (IEEJ) on the “Future of Asian LNG,” the findings from the workshop will expand our knowledge base on the potential for U.S. natural gas to serve the growing Asian market.
The workshop participants addressed four themes; (i) the size and productive capacity of the North American natural gas resource base, (ii) regulatory constraints on moving natural gas to domestic and export markets, (iii) demand risks, and (iv) potential consequences to the cost structure of U.S. oil and gas production from ongoing trade disputes. More importantly, the workshop brought together a broad cross section of the Washington energy community and provided an informed discussion of the opportunities and challenges on the future of the natural gas resource base.
The workshop benefitted from an excellent and well-experienced group of analysts, industry experts and policy makers. Although the discussion was off the record, all the presenters agreed to permit EPRINC to post their presentations and these can be found here.
Photos from the event can be found here.
On April 10, 2018 in Washington, DC, the Jewish Institute for National Security Affairs (JINSA) invited Lucian Pugliaresi to meet with a group of visiting officers of the Israeli Defense Forces (IDF) to discuss North American energy trends and energy security policy. A major natural gas find off the coast of Israel is bringing enormous opportunities for regional natural gas supplies, but also presents some important energy security challenges. A copy of Lucian’s presentation to the visiting IDF delegation can be found here.
EPRINC’s Will Pack and John Dahlberg explore the large net economic value of the Arctic National Wildlife Refuge in their recent paper entitled: “Untapped Potential: Why Developing ANWR Still Makes Sense.” This value is mainly driven by the expensive existing infrastructure, which will soon be lost without further development in the North Slope. The paper can be found at the following link.
EPRINC is pleased to announce that Ash Shastri has joined us as a Distinguished Fellow. Ash brings a wealth of experience on global natural gas markets and Indian energy policy. As EPRINC proceeds with the second year of our joint project with the Institute of Energy Economics Japan (IEEJ) on the Future of Asian LNG, Ash’s deep understanding of the intersection of energy policy and natural gas markets will be an invaluable contribution to this effort. Ash is now working on an assessment for EPRINC on the primary forces likely to shape natural gas demand in India. We expect to publish the report in March 2018.