The yellow line is oil. In the last few weeks, it has often surpassed cleaner nuclear and is a hair below natgas
Oil generators were producing more than 4.2GW on Thursday, accounting for 25% of power supply. Thats the highest since 2018
Prior to the storm, the liquefied natural gas tanker Cadiz Knutsen anchored in Massachusetts Bay. New England relies on overseas LNG imports to meet heating needs
But LNG shipments are way way more expensive than pipeline gas. Like 10-times more expensive
To understand why New England has to import expensive LNG, look no further than this picture of their pipeline system
Snowfall in Boston equaled the one-day record of 59.9cm set in 2003, according to AFP. While the town of Sharon recorded the highest snowfall by 8.30pm on Saturday with more than 76cm
Meanwhile, these guys just looking for an open Dunkin
US natural gas prices jumped as much as 9% this morning in Asia as the blizzard increases demand for heating/power
The March-April spread, known as the widowmaker due to its volatility, surged to the highest since Dec. 1, signaling fear of a supply crunch when winter ends
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The US is prepared to ensure alternative natural gas supplies to Europe covering a potential shortfall from Russia, Biden administration officials said
🇺🇸🤝🇪🇺
🚢 Re-routing supplies could take several days/weeks
🇶🇦 Qatar wouldn’t be able to boost output
To be sure, most US LNG supplies are sold to utilities/portfolio players under long-term contracts. They need to have financial incentive to send more to Europe
In fact, some LNG shipments are already diverting away from Europe and going to Asia due to better profit potential
In other words, US LNG tends to go to whoever will pay the most 💰
Remember, the US government has no direct control over American LNG exports or where gas goes. They can negotiate with export projects, but most of their LNG is under contract to non-US firms (like Jera or Gail)
European natural gas prices surged by more than 10% today on escalating Russia-Ukraine tension 🇷🇺 📈
Goldman says Russian flows to Europe could be curtailed for “an indefinite period” if the Nord Stream 2 pipeline project to Germany is hit by sanctions
German power prices for Tuesday jumped to their highest in more than a month as output from thousands of wind turbines across Europe’s biggest market plunged 🇩🇪 💨
Less wind output forces utilities to burn to more gas
The first American LNG cargo produced from shale gas was shipped in 2016, and the nation is expected to have the world’s largest export capacity by the end of 2022 after new units start up, according to @EIAgov
The shale gas revolution, coupled with billions of dollars of investments in liquefaction facilities, transformed the US from a net LNG importer to a top exporter in less than a decade
US gas production has surged ~70% from 2010 as the nation unlocked shale reserves