TGIF -- July 12, 2024

Locator: 48116B.

Gaslighting: the word for the day.

 PPI: for the market, for JPow, not helpful.

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Back to the Bakken

WTI: up about 1%. Back to $83.45.

Sunday, July 14, 2024: 28 for the month; 28 for the quarter, 354 for the year
None.

Saturday, July 13, 2024: 28 for the month; 28 for the quarter, 354 for the year
None.

Friday, July 12, 2024: 28 for the month; 28 for the quarter, 354 for the year
40244, conf, Whiting, Sanish Bay 5292 22-7 9BX (Oasis naming scheme),
40230, conf, Neptune Operating, Gustafson 5-8 4H,

RBN Energy: EU methane regs to begin impacting US natural gas producers. 

Three phenomena — the European Union’s laser focus on reducing greenhouse gas (GHG) emissions, the EU’s now-significant reliance on LNG from the U.S., and the impending startup of new LNG export terminals along the Gulf Coast — are converging, with potentially significant implications for gas producers and LNG exporters alike. Starting next year, U.S. and other suppliers that ship LNG to EU member countries will need to begin complying with the EU’s methane emissions reporting requirements — full compliance is mandatory by 2027, and in 2030 and beyond the gas exported to the EU will be expected to meet a to-be-determined methane intensity (MI) target. As we discuss in today’s RBN blog, the EU methane regulations are still a work in progress, but they provide another reason why U.S. gas producers have been increasing their monitoring of methane emissions and their efforts to reduce them. 

We’ve been tracking the certified/differentiated gas movement for some time now, most thoroughly in a five-part series a few months ago. In Part 1, we discussed the outsized climate impact of methane emissions — a GHG with more than 80 times the atmospheric heat-trapping effect of carbon dioxide (CO2) over the short term (five to 20 years) — and the push by an increasing number of E&Ps to reduce their methane emissions and get credit from the market for those achievements. Part 2 focused on the push by gas producers to have their gas certified (i.e., scored or assessed) as a “low-emissions” hydrocarbon allowing for a differentiated product based on the percentage of methane that escapes into the atmosphere during the production process, with higher marks being given to gas with a lower MI. We also discussed two alternatives for gas producers seeking to certify or differentiate their gas (MiQ and Project Canary) and noted that as much as one-third of the natural gas being produced in the U.S. each day was already being certified/differentiated by one of them.