Global diesel demand tightens. (page 1 )
Risk of higher U.S. diesel exports. (page 2 )
Oil is not under $100 per barrel. (page 3 )
The IEA is getting nervous.
Last week the head of Exxon told the U.S. Senate that oil should be $60-$70 per barrel because the world is well supplied. Now we hear from an obviously nervous International Energy Agency (IEA) that things aren’t quite to so good. “Oil-producing countries have been warned to increase output to safeguard global economic recovery or face the threat of the release of strategic stockpiles of oil by western countries for the first time since 2005.”
So which is it, feast or famine?
Clearly the CEO of Exxon has a different view than that expressed by the IEA this week. “In a statement the IEA, the advisory body for western countries on energy, added: “We are prepared to consider using all tools that are at the disposal of IEA member countries.”
Now that sounds serious. I wonder if anyone is listening?
It seems odd that this type of information didn’t come up during the Senate hearings. That is unless no one in the room wanted it brought up. Remember, sometimes silence on a topic says more than all the talking ever could.
Another “Game Changer” in natural gas…?
Well if size and complexity are what determines a game changer Shell wins with its announcement to proceed with Floating Liquefied Natural Gas in Australia (FLNG).
“This is big, ladies and gentlemen. Not just the decision to build the FLNG facility but also the facility itself. From bow to stern, Shell’s FLNG facility will be 488 metres. That’s almost half a kilometre! It will be the largest floating offshore facility in the world – longer than four football fields laid end to end. Almost as long – or so I’m told – as three MCGs end to end. When fully equipped, and with its storage tanks full, it will weigh around 600,000 tonnes – roughly six times as much as the largest aircraft carrier.”
Maybe more than anything else this speaks volumes about where Shell thinks that other game changer, shale gas is going take the market. Clearly Shell thinks natural gas will not remain cheap and demand will continue to grow.
An animation of the FLNG project is available on the Shell web site.
Graphics courtesy of Shell.