Shale giants dump oil hedges as losses spiral toward $42 billion

U.S. shale giants stung by billions of dollars in hedging losses are spending big bucks to ditch their positions in a risky bet that prices stay high. Companies including Pioneer Natural Resources Co. and EOG Resources Inc. are poised to post historic profits when they report earnings this week. But those windfall earnings would be even higher if it weren’t for massive accounting losses from hedges that protect against falling prices while limiting upside potential. Producers in the aggregate are looking at about $42 billion in oil and gas hedging losses through 2023, according to BloombergNEF calculations of data from last year. While such

Read More »

Steel market losing momentum as U.S. faces severe OCTG supply shortage

Following the dramatic recovery in U.S. steel production last year – a more than 18% year-on-year increase – the market is increasingly losing momentum.  Output has fallen in April after flatlining in the first quarter, bringing the year-to-date change to -1.6% year on year.  While capacity utilization is not exceptionally high – about 80% this year – raw materials’ restrictions since Russia’s invasion of Ukraine are constraining the U.S. steel output potential, not to mention inflating domestic prices of scrap, which surged over $750 per gross ton last month. Russia is the U.S.’s fifth most important supplier of steel, including semis,

Read More »

Energy transition still means billions in fossil-fuel investment

The energy crisis triggered by Russia’s invasion of Ukraine is increasing the world’s motivation to shift to low-carbon energy, but is also creating a near-term scramble for fossil fuels that will drive billions of dollars of new investment. The U.S. and European countries are planning liquefied natural gas terminals that

Read More »

Defeating Putin — now — is an economic imperative

He might secretly be the world’s richest person, but Russian President Vladimir Putin is also the world’s greatest value destroyer. The International Monetary Fund estimates that Putin’s barbaric invasion of Ukraine will lower world economic growth by eight-tenths of a percentage point this year and two-tenths next year. That might not sound like

Read More »

Exxon Sees Carbon Capture Market at $4 Trillion by 2050

 Exxon Mobil Corp. estimates there will be a $4 trillion market by 2050 for capturing carbon dioxide and storing it underground, the company said in a presentation on Tuesday. That is about 60% of the $6.5 trillion market the U.S. largest crude producer estimates for oil and gas by then. Carbon capture is

Read More »

Preston Pipe Report – April 2022

(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – President Joe Biden announced an agreement in late March committing the US LNG industry to

No event found!