Friday, May 22, 2020

Plans Disrupted -- Saudi's LNG -- May 22, 2020

For now, this simply seems nothing more than a footnote, but all the same, it does seem noteworthy. I don't know.

From Reuters:
  • due to lack of LNG demand, Sempra Energy delayed its decision to proceed with an LNG export project at Port Arthur, TX
  • this was supposed to have been Saudi Arabia's first foray into LNG as part of the state oil giant's plan to become a major global player in the gas market
  • right now, it make sense but I keep thinking that Prince MbS's Vision 2030 plan continues to fall apart
This is what happened the last time Saudi Arabia tried to destroy US shale:


The tea leaves suggest it's only going to get worse for Saudi Arabia. Think about this. In 2011, Saudi Arabia was getting $120 for each bbl of oil it sold; now the country is lucky to get $20 for each bbl. That's insane. It speaks volumes on how much money the Saudis blew through on sports cars and casinos.

OPEC basket, today, May 22, 2020: $28.43.


2 comments:

  1. it's prices again...when most of the LNG terminals were being planned, Japanese and Korean gas prices were 4 or 5 times ours, and Europe's prices were more than 3 times ours...now European prices have even fallen below our recent 24 year lows..

    ReplyDelete
    Replies
    1. I didn't know the spreads (or the ratios) -- that European prices have even fallen below our recent 24-year lows. Can you imagine what this is doing to Russia? Much less Saudi Arabia and the US?

      Delete

Note: Only a member of this blog may post a comment.