Headlamp’s Halloween Horror – “I’m from the government and I’m here to help.”

What’s so special about the Mustang Field?
Rashah McChesney, Alaska’s Energy Desk, October 30, 2018

The Mustang Field is pretty unremarkable — in that it looks like the rest of the North Slope. Flat tundra stretches as far as the eye can see — and on top, all the signs of the oil industry. There’s a long gravel road, a big pad and some equipment. What is remarkable about this field is the type of investment it has gotten in the past decade. Specifically, about $95 million dollars in state or state-backed loans. Instead of being operated by one of the major players on the North Slope, it is run by a small, 13-year-old, independent oil company — Brooks Range Petroleum Corporation.

Our Take: “I’m from the government and I’m here to help.” There are so many scary aspects of this story, not the least of which is the government lending itself money before the law was changed to allow the transaction.

RPT-Next-wave LNG race hits hurdles in U.S.-China trade war
Julie Gordon, Scott DiSavino, Reuters, October 30, 2018

The delay of a U.S. Gulf Coast liquefied natural gas (LNG) export project has crystallized fears that the U.S. trade battle with China is hampering efforts to line up buyers needed to move ahead with multi-billion-dollar builds. The United States is positioning itself as the dominant provider of the supercooled fuel as Asian nations shift away from dirtier power sources like coal, and this month’s approval of a giant Canadian project led by Royal Dutch Shell bolstered enthusiasm for the sector overall in North America.

Our Take: Companies new to the LNG world “face a range of challenges from financing to contract pricing to pipeline access…” “This favors energy giants like Shell, Exxon Mobil Corp and Qatar Petroleum, all of which have projects in the works, along with Cheniere Energy, the leading independent U.S. LNG company.” If only the energy giants got involved with Alaska LNG again…

Related:

China Signals More Support Needed Amid Pressure on Economy
Bloomberg News, October 31, 2018

Crude oil is doing something it hasn’t done in years
Stephanie Landsman, CNBC, October 31, 2018

Energy expert John Kilduff sees an unusual phenomenon affecting crude oil and beaten-down stocks. According to the Again Capital founding partner, oil and stocks have embarked on the closest trading relationship since early 2016 and during the financial crisis sell-off. “This has been the highest correlation that I’ve seen in quite some time,” he said Tuesday on CNBC’s “Futures Now.” His latest thoughts came with U.S. benchmark West Texas Intermediate crude on track for its worst month in more than two years. WTI closed at $66.40 a barrel on Tuesday, while Brent crude settled at $76.23. “A lot of folks like to trade crude oil and other commodities to get away from the correlations you have in the stock market,” said Kilduff, a CNBC contributor. “But over the past 20 days, you can see where stocks peak out in early October. Crude oil peaked out in early October.”

BP post strongest quarter in 5 years
Josh Lewis, Upstream Online, October 30, 2018

UK supermajor BP saw profits rise during the third quarter of the year, posting its strongest underlying performance in more than five years. BP posted a profit of more than $3.35 billion for the three months to 30 September, an increase on last year’s $1.77 billion third quarter profit. “Our focus on safe and reliable operations and delivering our strategy is driving strong earnings and growing cash flow,” BP chief executive Bob Dudley said. “Operations are running well across BP and we’re bringing new, higher-margin barrels into production faster through efficient project execution.”