“Oil & mining are the future of our state!” I couldn’t believe it – another politician was suggesting that our economy’s future was resource extraction. Don’t get me wrong. Resource development has been good for Alaskans, but it needs to be viewed as a runway, not a destination.”
Our Take: AKHEADLAMP was surprised to read this opening paragraph from a group named “Accelerate Alaska”, planning a conference in Anchorage to create a road map for the future of Alaska that doesn’t include resource development. Even more intriguing? The list of supporters that includes many organizations who receive funding from resource development companies. The group promises that “you’ll walk away with a road map and some actions”. AKHEADLAMP anxiously awaits the plan that takes Alaskans away from prosperity and 6 figure jobs…
Price surge propels Big Oil bounce back
Upstream’s Oil and Gas News Editorial, August 2, 2018
While oilfield services companies seem unable to convince investors they are out of the mire, Wall Street has over-egged some oil majors. Disappointing analysts, as some oil companies did with their second-quarter results, is regrettable but of secondary importance. The underlying financial results from ExxonMobil and other industry heavyweights showed more welcome financial improvement. The industry is far better placed to move ahead, now the damage of the oil price downturn has worked its way through the system.
ExxonMobil’s profits rose 18%, while underlying cost of supply earnings at Shell were up by 30%. Chevron doubled its earnings while BP, which is coming to the end of financial hits from the 2010 Macondo tragedy, saw underlying profits quadruple. These are the kind of financial performances, propelled by Brent crude prices back at $75 per barrel, which underpin future growth.
China’s largest refiner, Sinopec, will hold off on buying U.S. crude as an escalating trade war between Beijing and Washington threatens to make American imports more expensive, according to a person familiar with the matter. The state-run firm will delay buying any U.S. oil for September shipment until it is clear when China’s 25 percent tariff threat on U.S. crude imports might begin, the person said. The move comes as President Trump has directed U.S. Trade Representative Robert Lighthizer to consider increasing proposed tariffs on $200 billion in Chinese goods to 25 percent from 10 percent.
Our Take: They aren’t building our LNG pipeline, they aren’t buying our oil, they are threatening tariffs on US LNG and they may be more fragile economically than they appear. With friends likes this…
From the Washington Examiner Daily on Energy:
CHINA THREATENS TARIFFS ON US LNG TO RETALIATE AGAINST TRUMP: China proposed a list on Friday of $60 billion worth of tariffs on U.S. goods, including liquified natural gas.
The move to tax American LNG would be a major setback for the Trump administration’s ambition to flood the world with cheap natural gas as a key component of its energy dominance agenda.
Right back atcha: China is threatening to impose new tariffs on 5,207 kinds of American imports if the U.S. makes good on its pledge to impose a 25 percent tax on $200 billion worth of imported Chinese goods, up from an initial 10 percent rate.
As part of that, China says it would impose a 25 percent tariff on U.S. LNG.
Major stakes: Experts have warned that Trump’s trade war with China is threatening to discourage the world’s fastest growing LNG market from signing long-term contracts with American developers.
China’s demand for LNG is soaring, and it is relying more on the U.S., becoming the third largest destination for American gas behind Mexico and South Korea. Chinese imports of U.S. LNG increased from zero in 2015 to 17 billion cubic feet in 2016, to 103 billion cubic feet last year
qz.com opinion, August 3, 2018
As America retreats, China is striving for global leadership on everything from trade to climate change to advanced technology. It has the capital to fund infrastructure spending across the globe, and the economic clout to freeze out trade partners and corporations who offend its sense of national identity. But the country may be more fragile than it looks, with a shifting economic model, changing demographics, lots of risky debt, and an aging population.