The Market And Energy Page, T+159 -- June 28, 2017

Wow, this was unexpected. So much for all that concern about "no vote" on health care bill in the US Senate -- new records today? At the opening:

• Dow 30: up 100 points
• Nasdaq: up 10 points
• S&P 500: up 10 points 

China and natural gas, records being set. From Reuters:

• China's goal: decrease coal consumption; replace with LNG
• China's target: increase the share of natural gas in energy consumption from 6% (2015) to 10% (2020)
• China's target: average annual increase of 4% in share of LNG for energy consumption
• China's current rate of increase: more than double -- wow!
• China's biggest gainer: LNG imports -- up almost 40% in the first five months of 2017
• rise in natural gas output (domestic production) stands in sharp contrast to the decline in crude oil production which fell to the lowest on record in May as output declines from older fields
• Australia: among China's suppliers, Australia fared bet; Australians imports rose almost 43% in first five months of 2017
• pricing? Australian LNG -- almost $7/mmBtu, vs about $3 in the US
• Australia's price advantage is still largely tied to the 25-year supply deal from the North West Shelf venture, signed in 2002 at a fixed price of $3.80/mmBtu 
• with cost of intermittent energy in Australia, Asia is now paying less for their electricity than Australia (reported elsewhere)

Worried? Harold Hamm sounds worried.

• says oil below $50/bbl is not sustainable (really?)
• says oil below $40/bbl would cause US producers to reduce drilling (okay)
• warns US drillers to be prudent, exercise discipline
• reminder: of all the E&P names with whom we are familiar, only Harold Hamm/CLR is unhedged ("naked" as they say)