Headlamp – Good, bad and ugly of China & LNG. State leaders: salmon initiative will cost time and $.

Risks are rising that oil prices will cause next recession
CNBC, Tim Mullaney, July 23, 2018

Oil gained more than 20 percent in the first half of 2018, and odds have been rising that higher crude oil prices will spark the next economic downturn. This should not come as a surprise for any investor who is a student of market history: The last five U.S. recessions were also preceded by a rise in oil prices.

Energy giants opening natural gas spigots, fueling profit rise
Reuters, Ernest Scheyder, July 22, 2018

The world’s largest oil companies are pumping more natural gas than ever before, helping to spur a rise in profits while sating rising global demand for fuels that can mitigate global greenhouse gas emissions. BP Plc (BP. L), Exxon Mobil Corp (XOM.N), Royal Dutch Shell Plc (RDSa.L), Total SA (TOTF.PA) and Chevron Corp (CVX.N) have collectively increased natural gas output 15 percent in the past decade thanks to better technology and lower costs, according to data from Wood Mackenzie energy consultancy.

Chinese June LNG imports rise YoY
LNG World News, Staff, July 23, 2018

Imports of liquefied natural gas (LNG) into China during the month of June have risen compared to the corresponding period last year. The country that is pursuing the switch from coal to natural gas for heating and industrial purposes, saw its June LNG imports reach 3.97 million tons, 31.3 percent above the volumes imported in the corresponding month last year, data from the General Administration of Customs shows.

Our Take: The good. China needs LNG, Alaska has a huge supply.

China just received its first LNG shipment to arrive directly from the Russian Arctic by ship
Arctic Today, Hsin Hsuan Sun, July 20, 2018

A liquified natural gas shipment arrived in China from Russia’s Yamal LNG project via the Northern Sea Route for the first time on Thursday, a trip that cut shipping time by almost half compared to traditional routes. Chinese media hails the delivery as a “new page” for Russia’s LNG exports to China. This new shipping route saved gas supplier Novatek almost 20 days shipping time to China, as well as the fees incurred on the westward route via Suez Canal.

Our Take: The bad. Alaska has competition.  

China is waging a ‘cold war’ against the U.S., says CIA Asia expert
NBC News, Saphora Smith, July 21, 2018

China is waging a “cold war” against the United States to take its place as the leading global power, a top CIA expert on Asia said Friday. Beijing does not want to go to war with the U.S. but is attempting to undermine Washington’s global position by using all avenues available to it, said Michael Collins, deputy assistant director of the CIA’s East Asia mission center.

Our Take: The ugly. China wants to be number 1 and they don’t play fair. Anyone who tells you this won’t impact the Alaska LNG project is not acknowledging reality.

Siemens and Knikatnu propose to jointly supply IGU with LNG
Alaska Public Media, Dan Bross, July 20, 2018

A natural gas supply proposal from Siemens and Knikatnu Corporation is a safer, less expensive option for the Interior Gas Utility. That’s the message from officials with the partnered companies that want to supply the Fairbanks North Star Borough’s Interior Gas Utility with liquefied natural gas. The IGU’s current plan is to expand its Titan LNG production plant on Cook Inlet to increase output of gas it trucks to Fairbanks. Speaking in Fairbanks on Monday, Knikatnu Corporation President Tom Harris says buying gas from Knik area Native Corporation and Siemens would save the Interior Gas Utility the cost of expanding the Titan plant.

Our Take: AKHEADLAMP hopes this is a big step in securing reliable, affordable energy for Fairbanks.

From today’s Washington Examiner, Daily on Energy:

OIL MARKET CONCERNS HIT THE SENATE: The Senate Energy and Natural Resources Committee will be meeting with energy analysts and experts to better understand what could drive oil prices higher.

Hearing from the experts: Those testifying include who’s who list of energy experts, but no one from the administration or the Energy Information Administration. The closest person to a government official would be Keisuke Sadamori, the energy markets for the International Energy Agency. But that’s a consortium of governments from around the world to which the U.S. contributes.

More energy advisers: John Auers, executive vice president at Turner, Mason & Company, will also be testifying, along with Robert McNally of the Rapidian Energy Group.

Jason Bordoff, founder of Columbia University’s Center on Global Energy Policy, will also be there, along with E. Russell Braziel, CEO of the market analytics firm RBN Energy.

State leaders say salmon initiative would cost time and money if it passes
KTOO Public Media, Andrew Kitchenman, July 20, 2018

State government leaders said an initiative to protect salmon that Alaskans could vote on in November will cost the state money and delay infrastructure projects. They spoke at a Senate State Affairs Committee meeting held Friday in Anchorage to consider the effect of Ballot Measure 1.

Our Take: AKHEADLAMP appreciates Senator Giessel’s observation, “It’s amazing to see how well the state agencies work together to protect Alaska’s resources – especially fish.”