The market looks to the Opec monthly report for guidance. Over the years since it started at a few faxed pages, rather thin on content, that turned up when it turned up, it has acquired some gravitas, a counterpoint to the IEA report.
This is the third in a series of blogs using data from Argus Data and Downloads, which are available to Argus Direct subscribers here.
European LNG supply has risen to the highest in recent years, but when looking at the breakdown of sendout by country it is much too early to call it a “wave”.
The increase so far this summer has come from countries mostly outside the liquid hubs of northwest Europe. Instead of being dumped in northwest Europe, LNG has been competing with Algerian pipeline gas in Italy and Spain.
“We are a price taker. We are not a price maker, unfortunately. So, as we have just re-discovered, if you are not a price maker but a price taker, your job is to control breakeven,” Total chief executive Patrick Pouyanne told the World Petroleum Congress (WPC) this week.
He was referring to the past three years when oil and gas companies (aka price takers) have had no other choice but to introduce very strict financial discipline, boost the efficiency of their operations, defer or cancel quite a few development projects and in general learn again how to survive and thrive in a lower oil price environment.
This is the second in a series of blogs using data from Argus Data and Downloads, which are available to Argus Direct subscribers here.
Yesterday’s blog analysed the recent increase in Russian producer Gazprom’s exports to Europe, despite weaker prices. But it is not only Gazprom that has an unorthodox supply curve — you and I do too.
There are some similarities to the backward bending labour supply curve. People at first try to work more as wages go up, but once income reaches a certain level they will start cutting hours to free up leisure time.
This is the first of a series of blogs using data from Argus Data and Downloads, which are available to Argus Direct subscribers here.
Two stories at the start of July pointed to a large increase in Europe’s gas supply this summer and talk of a “price war”.