The U.S. became a net gas exporter just a few weeks ago, but exports to Canada have actually been falling. Unlike still developing Mexico, Canada doesn’t have huge incremental gas needs, explaining why it’s so critical for Canada’s gas industry to have access to global markets via LNG. Interestingly, while Mexico is overdependent at 60%, natural gas accounts for just 10% of Canada’s power generation.
But, U.S. shale gas will continue to be very competitive into eastern Canada as new pipeline infrastructure gets built, such as the Rover and Nexus routes which will take Marcellus and Utica gas to southern Ontario’s Dawn hub. Both are expected to have completed phases next year………………………………….Full Article: Source

Thanksgiving will mark two years to the day since ministers at the Organization of Petroleum Exporting Countries (OPEC) made a decision that triggered a swoon in global oil prices. But the energy sector strategist for UBS Wealth Management anticipates the oil market will get back into equilibrium by mid-2017 and that should mean good news for investors.
“Yes, this is a good time to invest in the energy sector on a selective basis,” Nicole Decker said Tuesday in a telephone interview from her office in New York City. “We take it day by day but we like the opportunities and the risk-reward, finally, two years later.”………………………………..Full Article: Source

The group recently agreed to production cuts to try to prop up low oil prices, but left details for later. For two years, the Organization of the Petroleum Exporting Countries has appeared powerless to stop a slide in prices that has punished the economies of oil-dependent members, including Saudi Arabia.
Such a state of affairs calls into question whether the once-powerful cartel is still a relevant force in today’s market. The group reasserted itself in September in Algiers, saying its members agreed to cut production……………………………………..Full Article: Source

It‘s hard to imagine metallurgical coal exerting much influence on other commodity markets. But when the price of a commodity quadruples in slightly over 10 months, its clout amplifies.
A range of products in the metals and coal markets have glided into the slipstream of the year’s best commodity price performance – ignited by crippling Chinese and Australian coal supply shortages. Spot premium hard coking coal prices from Australia was assessed at $310/mt FOB Australia on November 10, up from $76.45/mt FOB Australia at the start of the year……………………………………..Full Article: Source

Unprecedented steps by Beijing to snuff out a months-long rally in coal prices are casting fresh doubts on China’s drive to become a global price-setting hub for commodities worth trillions of dollars. The world’s top consumer of many raw materials has been pushing to boost its influence on pricing of everything from iron ore to oil, mainly through steps such as promoting Chinese futures contracts as regional or global benchmarks.
But analysts and traders said that a wave of moves to cool coal prices, which surged as a side-effect of radical government measures to fight pollution by curbing mining, show that Beijing could be reluctant to let markets trade freely and openly…………………………………….Full Article: Source

After a five-year downturn, the world’s least-loved commodity is burning brightly again. The price of coking coal has just topped $300 a tonne for the first time since 2011 as steel mills in Asia scramble for supplies.
Premium hard Australian coking coal rose 6 per cent to $307.2 a tonne on Tuesday, extending gains since April to 250 per cent, according to a price assessment from the Steel Index. The last time coking – this year’s best performing commodity – was trading at these levels was in 2011 after severe flooding disrupted supplies from Australia, a leading producer…………………………………….Full Article: Source

‘The industry doesn’t work under $50 oil,’ says veteran energy investor who sees better days ahead. As the Canadian oilpatch slowly emerges from a two-year price collapse, one investor suggests the industry would have gone belly up if the downturn dragged on for another year.
Energy financier Rick Grafton is confident the worst is over. “The last two years has been among the most challenging in the history of the Canadian oil and gas industry. The energy business was close to bankruptcy,” said Grafton, the CEO of Grafton Asset Management and co-founder of FirstEnergy……………………………………Full Article: Source

An unprecedented surge in coal prices in the past few months to more than double their June levels is a big fillip for Glencore and Noble, who are among the biggest traders of thermal coal, which is used to produce electricity.
They are taking advantage of their mine production, storage facilities and shipping fleets to provide users of coal with cargoes at short notice and at premium prices, sources familiar with recent deals told Reuters. They are also striking longer-term supply deals, also on rich terms, the sources said…………………………………..Full Article: Source

Uranium has been under pressure, currently trading at 12-year lows, but one executive in the sector thinks the bear market may be coming to an end.
Speaking with Kitco News on the sidelines of the New Orleans Investment Conference, Uranium Energy CEO Amir Adnani says he sees a lot of similarities in the uranium space as he did in 2004, before prices rallied. ‘I think the picture today is set up a lot more in a bullish way and reminds me a lot more of 2004.’…………………………………..Full Article: Source

China’s coal output output fell 12.3 percent last month, extending a prolonged period of government-enforced cuts before Beijing gave the go-ahead for producers to reopen shuttered capacity amid a surge in prices.
Output in September fell to 277 million tonnes from a year ago, according to the National Bureau of Statistics on Wednesday. Production has fallen every month since at least July last year, government data shows. For the first nine months, output was down 10.5 percent to 2.46 billion tonnes, the bureau said……………………………………Full Article: Source

The global integrated oil and gas business is stabilizing and will likely improve modestly from recent historical lows over the next 12-18 months, says Moody’s Investors Service in a recent report. The report—“Integrated Oil & Gas: Global Oil Price Uptick, Accelerated Cost Cuts Put Upstream Activities on Road to Recovery”—says higher oil prices and lower operating costs are driving a steady improvement in companies’ earnings.
“Over the last year, integrated oil and gas companies have accelerated reductions in their operating costs to adjust to earlier oil-price declines. As a result, most companies’ upstream operations returned to positive net income generation in the second quarter of 2016, while also benefiting from an uptick in the price of crude,” said Elena Nadtotchi………………………………………Full Article: Source

The Russian Energy Ministry is hoping for a constructive dialogue within the framework of the member states of the Organization of the Petroleum Exporting Countries (OPEC) in Algeria, Russia is ready to coordinate its actions with other oil producers in order to coordinate their actions on the market, Energy Minister Alexander Novak said Thursday.
OPEC member states are expected to renew talks on a possible oil output freeze with non-member states at the September 26-28 International Energy Forum (IEF) in Algiers, Algeria………………………………………Full Article: Source

For all the predictions about the death of coal, it’s now one of the hottest commodities in the world. The resurrection may have further to run. A surge in Chinese imports to compensate for lower domestic production has seen European prices jump to near an 18-month high, while Australia’s benchmark is set for the first annual gain since 2010.
At the start of the year, prices languished near decade lows because of waning demand from utilities seeking to curb pollution and amid the International Energy Agency’s declaration that the fuel’s golden age in China was over………………………………………..Full Article: Source

For all the predictions about the death of coal, it’s now one of the hottest commodities in the world. The resurrection may have further to run. A surge in Chinese imports to compensate for lower domestic production has seen European prices jump to near an 18-month high, while Australia’s benchmark is set for the first annual gain since 2010.
At the start of the year, prices languished near decade lows because of waning demand from utilities seeking to curb pollution and amid the International Energy Agency’s declaration that the fuel’s golden age in China was over. ……………………………………….Full Article: Source

Energy funds have been struggling to deliver returns against a turbulent backdrop. Oil prices were on a downward trend by the end of 2015 and have been fluctuating this year before settling below $50 a barrel.
The turbulence dates back to November 2014, notes Robert Crayfourd, portfolio manager of the New City Energy investment trust, “when Opec decided it would no longer act as the market stabiliser”. In Indosuez Wealth Management’s analysis and asset allocation paper for the third quarter of 2016, it points out the slide in the price of West Texas Intermediate (WTI) oil reached a low of $26.2 a barrel on February 11, resulting in a sharp drop in US production………………………………………..Full Article: Source

Less than a year after the coal industry was declared to be in terminal decline, the fossil fuel has staged its steepest price rally in over half a decade, making it one of the hottest major commodities.
Cargo prices for Australian thermal coal from its Newcastle terminal, seen as the Asian benchmark, have soared over 35 per cent since mid-June to more than one-year highs of almost $70 a tonne, pushed by surprise increases in Chinese imports………………………………………..Full Article: Source

Investors in European coal, the year’s best-performing commodity, should strap in for a bumpy ride as demand for the fuel wanes.
Coal for delivery in Europe in 2017 will fall about 11 percent by December, taking the gloss off the longest rally in year-ahead prices since 2010, according to a survey of traders and analysts by Bloomberg. The mineral’s 48 percent jump this year is more than double crude oil’s advance………………………………………..Full Article: Source

Saudi Arabia’s oil and natural gas production and drilling activities are unaffected by crude prices at current levels, the state-run producer’s chief executive officer said, signaling that the world’s biggest oil exporter will continue to protect its market share.
Saudi Arabian Oil Co., known as Saudi Aramco, will keep investing in oil projects for the long term, and its sales to buyers in East Asia are rising, Amin Nasser told reporters Wednesday at a signing ceremony for a gas-processing plant near the eastern city of Jubail………………………………………..Full Article: Source

Agency says rise in demand amid price slump has given region biggest market share since 1970s. The world risks becoming ever more reliant on Middle Eastern oil as lower prices derail efforts by governments to curb demand, the west’s leading energy body has warned.
The head of the International Energy Agency told the Financial Times that Middle Eastern producers, such as Saudi Arabia and Iraq, now have the biggest share of world oil markets since the Arab fuel embargo of the 1970s………………………………………..Full Article: Source

With prices set to double by 2018, we’ve seen the bottom of the uranium market, and the negative sentiment that has followed this resource around despite strong fundamentals, is starting to change.
Billionaire investors sense it, and they’re always the first to anticipate change and take advantage of the rally before it becomes a reality. The turning point is where all the money is made, and there are plenty of indications that the uranium recovery is already underway………………………………………..Full Article: Source

Although most analysts remain bearish, thermal coal has risen about 5% in the past month. A rising tide lifts all boats — even it seems seaborne thermal coal, possibly the least loved major commodity.
Raw materials are enjoying their best start to a year since 2008 aided by a weaker US dollar and better supply and demand fundamentals. Iron ore, oil, gold, soybeans and zinc have led the advance but other less favoured commodities have also seen gains, including coal………………………………………..Full Article: Source

Global consumption of coal fell by a record amount last year thanks to waning Chinese demand and increasing use of cheaper gas and oil, according to data from BP. The energy giant said that demand for oil, gas and renewable energy all increased last year despite sluggish economic growth but that there was a distinct shift away from coal, the most polluting of energy sources.
Oil increased its market share of global primary energy consumption for the first time since 1999, to 33pc, as low prices spurred demand………………………………………..Full Article: Source

‘Fueling Freedom’ author Kathleen Hartnett White says the U.S. is sitting on $50 trillion in oil and gas, but the government is stopping us from getting at it. Why is the government blocking access to America’s abundant resources and preventing the country from becoming energy independent?
“Yes, it’s quite a big number and it’s the government’s number if you combine all of the Department of Energy’s estimates and I might add it also includes coal,” White said. White said the shale revolution is a key factor in improving access to those energy resources………………………………………..Full Article: Source

A growing move in the United States to divest from oil and gas investments is a knee-jerk reaction that could jeopardize long-term values, an energy group said. The American Petroleum Institute, which represents the interests of the U.S. oil and natural gas sector, responded to word that the District of Columbia Retirement Board opted to divest from the industry.
Even though a lower price for crude oil has cut into the budgets of U.S. energy producers, the API said the country is still a world leader in oil and gas production and moving funds out of the industry may be short-sighted………………………………………..Full Article: Source

Saudi Arabia’s cabinet approved a new economic plan Monday to diversify state revenue in the world’s largest crude oil exporter away from oil by 2030. It also set oil and gas production-capacity targets for the period.
The National Transformation Program elaborates on the Vision 2030 document released in April as the brainchild of Deputy Crown Prince Mohammed bin Salman, the son of the Saudi monarch, Salman bin Abdul Aziz. The deputy crown prince has chaired the Council for Economic and Development Affairs since his father’s accession to the throne………………………………………..Full Article: Source

Eleven energy and technology firms said on Monday offshore wind can be as cheap as gas and coal within a decade, but said European nations must do more to ensure a stable legal framework to inspire investment in zero carbon generation.
Germany’s RWE, E.On and Siemens signed an open letter, alongside Norwegian oil firm Statoil, Sweden’s Vattenfall and General Electric of the United States, saying they can produce for less than 80 euros ($90.80) per megawatt hour per project by 2025………………………………………..Full Article: Source

The world’s oil market is rebalancing faster than expected due to several serious outages, but for now there is enough oil in storage and excess capacity to keep prices from spiking.
“We’ve strung together an impressive number of outages and supply disruptions for the moment, but there’s every incentive in the dire straits the industry’s been in to get these barrels on line,” said John Kilduff, partner with Again Capital………………………………………..Full Article: Source

Producers hope to create new markets to boost demand to drag LNG prices out of the doldrums. Natural gas transported across the world’s oceans by ship has helped to displace coal burned in European power plants and Chinese household cookers. Now, producers want it to become a fuel for cruise liners, container ships and road trucks.
In doing so, Big Oil hopes to boost demand by enough to drag prices of liquefied natural gas out of the doldrums. LNG prices last month sank to a seven-year low in Asia as demand failed to keep up with rising supply from countries including the U.S. and Australia………………………………………..Full Article: Source

Economic growth in China, India and other parts of Asia are expected to play a big part in driving the world’s energy consumption up by 48% within the next three decades. Growth toward 815 quadrillion Btu by 2040 is forecast to come as renewable energy’s slice of the energy supply pie gets bigger but not nearly enough to overtake fossil fuels, which will be the dominate energy source.
Petroleum and other liquids will lead the way, followed by natural gas, the fast-growing fossil fuel. Coal consumption is expected to fall just about everywhere, except India, amid continued efforts worldwide to reduce emissions………………………………………..Full Article: Source

Oil and gas companies hurt by low prices are leading a drop in Canadian investment plans for a second year, a government survey found. Planned spending by companies and governments on non-residential construction and machinery and equipment will fall.
4.4 percent in 2016 to C$241.6 billion, Statistics Canada said Tuesday from Ottawa. The survey backs up recent statements from Bank of Canada policy makers, who say the country is undergoing a complex adjustment as an oil-price shock and slower global demand hamper growth………………………………………..Full Article: Source

In a global business world facing unprecedented challenges, leadership often seems to come from unexpected quarters. Institutional investors have increasingly been making their views known, and their power felt at the AGM’s of publicly listed businesses. As environmental, social and governance (ESG) issues become mainstream, it becomes harder and harder for businesses to suffer from “willful blindness.”
The players who are now calling for a change of strategy in the direction for many listed businesses vary from the United Nations, to a host of not-for-profit organizations, to think-tanks. Are their insights just that — real insights — because they do not operate in the same silos as independent commercial business?……………………………………….Full Article: Source

Energy continues to be the biggest drag on the overall earnings picture since the past several quarters and this quarter is not going to be an exception. This is especially true as earnings for 11.9% of the S&P 500 energy companies that have reported so far are down 60.9% on revenue decline of 30.3%, as per the Zacks Earnings Trend.
In addition, total earnings for the sector are expected to be down 110.4% from the same period last year on 29.7% lower revenues. Notably, sluggish earnings report from the world’s largest oilfield services provider -Schlumberger - last week disappointed investors as the company not only missed our top- and bottom-line estimates but also posted year-over-year declines on both metrics……………………………………….Full Article: Source

Russian Energy Minister Alexander Novak told news agencies Wednesday that he wasn’t sure oil-producing countries would be able to reach a deal to freeze production, but that the need to do so might decrease in the coming months.
“I wouldn’t say now that we are sure they will be able to agree among themselves, because there are very diverse positions,” Mr. Novak said. He cautioned against dubbing the inconclusive meeting with the Organization of the Petroleum Exporting Countries in Doha last week a failure, but said Saudi Arabia had been “unauthorized” to change its position at the last minute………………………………………..Full Article: Source

The ancient Chinese philosopher Laozi once said a journey of a thousand miles begins with a single step. Which is true enough, but it helps if the step is in the right direction. Backers of a renewable energy boom were forced into a U-turn as recently as 2009, when state subsidies were slashed, the credit crisis ended access to easy finance, and cut-throat competition arrived from China.
Energy ventures fell in value by two thirds. Several went bust. Established energy companies reduced their involvement. Europe’s carbon trading market suffered. But a view is rapidly developing that clean energy is set to enjoy a renaissance, with the United Nations providing impetus from an agenda for sustainable development, approved by its general assembly in October, followed by a political deal on action to combat climate change in Paris………………………………………..Full Article: Source

Australian Prime Minister Malcolm Turnbull on Wednesday said the country would establish a A$1 billion (535.7 million pounds) clean-energy innovation fund, in a major departure from his predecessor’s much maligned approach to combating climate change.
Conservative former Prime Minister Tony Abbott was criticised by environmental groups for lagging behind other advanced economies when he announced cuts to Australia’s greenhouse gas emissions last year………………………………………..Full Article: Source

Saudi Arabia is considering options to shift from fossil fuels both as the main source of income and main energy source. Riyadh is focusing on renewable energy sources such as solar power in preparation for a post-oil global economy, Oil Minister Ali al-Nami said at a conference in Berlin.
However, the minister estimated that the world will rely on fossil fuel for at least another 50 years. “There is no way in the next 50 years” that the world will abandon extracting the fuels, al-Naimi said, adding that “by the way, they are not that bad.”……………………………………….Full Article: Source

It was one of the darkest periods of the oil market slump. The global economy was showing fresh signs of slowing, and crude prices were collapsing so steeply that virtually every well in America was unprofitable.
But when Diamondback Energy went out to raise $226 million worth of new stock that week in the middle of January, the oil and gas company found more buyers than it could accommodate. It had to nearly double the amount of shares it sold, to 4 million………………………………………..Full Article: Source

The uranium market has been in a five-year bear market that shows no signs of bouncing back. But, one junior uranium player says the commodity is set for a strong move up. Kitco News caught up with Amir Adnani, CEO and president of Corpus Christi, Texas-based Uranium Energy.
Spot prices of uranium, used to make fuel for nuclear power production, have been depressed since the 2011 Fukushima disaster in Japan, which led to the shutdown of the country’s reactors and generated stockpiles globally. Uranium currently trades around $32.15 a pound………………………………………..Full Article: Source

China plans to set up a market for renewable energy certificates to try to increase the use of cleaner energy as the world’s largest greenhouse gas producer tries to reduce its reliance on coal.
Power suppliers will be able to trade “green certificates” that represent the proportion of non-hydro renewable energy that they generate, the country’s National Energy Administration said on Thursday in a statement on its website………………………………………..Full Article: Source

Every week, the EIA proclaims a new record for natural gas production. But their own forecasts show that the U.S. will be short on supply by October of this year. A price increase is inevitable beginning later in 2016.
Popular Myth vs Reality: The popular myth is that gas production will continue to increase and that prices will remain low for years. In the myth, price has no effect on production. The reality is that price matters and production is down 1.2 bcfd1 since September 2015……………………………………….Full Article: Source

In the final quarter of 2014, business investment related to oil, gas and other mining hit an all-time high. One year later, that’s dropped by more than half. It’s the second-biggest yearlong drop in inflation-adjusted investment seen by any of the major categories in more than 50 years. (Which is how long we’ve had comparable data.)
Even by standards set by previous swings in the relatively small, volatile mining and gas sector, this one’s a humdinger. Mining and petroleum is one of the smallest categories of business investment, especially after that brutal four-quarter stretch lopped off half its size, but it has still caused some of the biggest swings in the distribution of business investment in the modern era………………………………………..Full Article: Source

Major investors listed the credit quality of the commodities and energy sectors as their biggest worry this year, as oil oversupply combines with reduced demand from China to drive energy prices sharply lower, said ratings agency Moody’s Investors Service in a report.
The finding on the most exposed sectors to downside risks in 2016 — the result of polling the region’s largest investors, intermediaries and debt issuers based in Singapore and Hong Kong — was consistent with Moody’s view that rated Asian corporates with commodity exposure remain in a precarious position………………………………………..Full Article: Source

A wave of oil and gas deals is set to reshape the energy industry this year, following a collapse in crude prices to their lowest level in eleven years, according to consultants Wood Mackenzie. After the slowest period for deals in more than a decade in 2015, Wood Mac is forecasting a “ramp up” in mergers and acquisitions during 2016 regardless of what happens to oil prices.
The consultancy’s report, published on Wednesday, said that if the price of internationally traded Brent stayed at or near current lows of less than $35 a barrel, oil and gas companies would be forced to sell assets and merge businesses “to free up capital, to cut costs and to survive amid growing financial pressures”………………………………………..Full Article: Source

Global oil and gas prices will remain weak in 2016 on continued oversupply resulting in at least 20-25 percent reduction in investment in oil and gas exploration and production, Moody’s Investors Service said on Tuesday.
“The oil and gas sector will see a rise in distressed exchanges and defaults amid the continued low commodity prices that we expect in 2016,” Moody’s said in its report “Oil and Natural Gas Industry - Global: Persistent Weak Prices in 2016 Rein in Capital Spending, Heighten Financing Risk”………………………………………..Full Article: Source

China expects its energy consumption to grow in 2016, the official Xinhua news agency of the world’s largest energy consumer said on Tuesday. China’s apparent demand for crude oil will reach 550 million tonnes (11 million barrels per day) and apparent demand for natural gas will hit 205 billion cubic metres, Nur Bekri, head of the National Energy Administration (NEA), said, according to Xinhua.
Electricity consumption will rise to 5.7 trillion kilowatt-hours and coal consumption will be 3.96 billion tonnes. Non-fossil fuels will also make up 13.2 per cent of primary energy needs in 2016, up from 12 per cent this year, while coal will fall to less than 62.6 per cent from 64.4 per cent, he said………………………………………..Full Article: Source

Uranium prices are expected to outperform other commodities in 2016 and beyond as a global climate change deal and growing demand from Asia bolster the prospects of the nuclear industry.
The metal that powers nuclear reactors has been gradually recovering from a sharp decline in the wake of Japan’s Fukushima disaster in 2011, and has gained this year as several other commodities slumped due to oversupply and concerns about Chinese economic growth and US monetary tightening………………………………………..Full Article: Source

Trying to predict the future trends of oil prices is hard and the results are disappointing most of the time, especially when we ignore the facts and figures and rely on hope and wishful thinking.
A year ago following OPEC’s decision not to cut oil production and keep the oil market oversupplied, many of oil industry experts, analysts and CEOs were expecting oil prices to recover in a short time. Hence, the oil and gas industry’s reaction to the current downturn was not as fast as it should have been and the consequences in many cases were catastrophic………………………………………..Full Article: Source

The oil and gas industry is in for a “lot more pain” in 2016, according to Julian Mylchreest, Global Head of Energy at Bank of America Merrill Lynch. Speaking at Fitch Ratings’ London Energy Seminar on Tuesday, Mylchreest said, “The industry is by no means out of the woods yet with oilfield services companies appearing to be the most stretched. I see more financial pain for oil and gas companies over the first two quarters of 2016, but expect improvement thereafter.”
Mylchreest opined it was one thing getting to $40 per barrel, but maintaining liquidity at lower oil prices was the challenge. “It’s being met by operating and capital expenditure cuts, with gaps bridged by asset sales.”……………………………………….Full Article: Source

It is too early to forecast the outcome of oil producer group OPEC’s Dec. 4 policy meeting, Qatari energy minister Mohammad bin Saleh al-Sada said. “It is a little too early to predict what would be the outcome of the next meeting but we are watching the situation closely,” Sada, who is also acting president of OPEC, told a news conference.
He said current oil prices were failing to encourage investors. “A fair price (would) take into consideration the sustainability of growth coupled with incentives to the investors and that is not a figure hard and strong, but it is a dynamic.”……………………………………….Full Article: Source

As an investor in start-up companies, I am always working to test my assumptions and update my understanding of where the energy sector is now, and the direction it is moving in towards the future. Some key questions for this dynamic year: Is the current oil crisis the marking of a step change towards a cleaner energy industry or merely history repeating itself?
While today’s oil price at $45-50 per barrel is probably too low to be considered the new normal, what should we expect moving forward? One thing is for sure: change is coming. Although demand for oil and gas will continue for decades to come, it will gradually diminish as renewable energy sources rise………………………………………..Full Article: Source