In part 2 of this series, I have described the events that have led to the situation we are in now. Oversupply. Oh no, I am really downplaying things now. It’s not way more than simple oversupply. This is the mightiest, most impressive, most crushing wave of uncommitted LNG this planet has ever faced. And […]
Anyone studying the history of humankind from its beginnings to this very day will reach a point where he wonders what makes humans tick. Many times, a collectivity, a state, a people reaches a point of relative wealth and wellbeing. They are safe on the outside and on the inside, their economy is thriving, cultural […]
Every business person – secretly – dreams of controlling a monopoly. They want everyone to beat a path to their respective doors to buy whatever is on offer. For the price and on the conditions they decide. It’s a natural urge. The realist in us tells us that in a normal world, competition is going […]
The greatest enemy that any human ever faces lies within oneself. It seems to be the most fundamental of all human natures. Our shallowness. Our love for the simplified. Our fear of our true selves. Few persons ever face their inner demons and accept them. Few embrace them to outgrow the shell that we were […]
Who invented railways? Easy, you say. It’s the Brits when the Industrial Revolution started to get into high gear. And it revolutionized land transport. For the first time, moving big and heavy objects was possible as a part of normal life. And without employing extraordinary means. Right? Wrong. The idea of a track that makes […]
In April 2009, the History channel aired the Pilot for the series “Life after people”. The basic plot of this non-fiction speculation is that humans somehow disappeared. They went away in one second, never to return. The gist of the pilot was what would happen as a consequence of that. When I saw it for […]
The year is 2019 A.D. The energy world is entierly occupied by bureaucratic representative bodies doing the lobbying work on their behalf. Well, not entirely. One small organization of indomitable energy professionals still hold out against the incumbents. And life is not easy for the management of energy companies used to the slow pace of […]
In 1873, Jules Verne published his most acclaimed novel. “Around the World in 80 Days”. An English gentleman, Phileas Fogg, and his valet Passepartout attempt to circumnavigate the globe in 80 days. The entire journey is the result of a wager that Fogg set with his friends in the Reform Club. Not only was it […]
Imagine you had demanded world leaders 10 years ago to stop using fossil fuels in 11 years. You would have been laughed out of the room. Everyone was aware that life without fossils would not be possible or conceivable. They did not even consider it and they had no qualms about saying so. Not so […]
Herbert Hoover is one of the most misunderstood presidents of the United States ever. His presidential term took a very negative turn due to the fallout of the world economic crisis. He took the reigns of the country right after that fateful year 1928. The great depression forever carries his name. An attribution he did […]
About 24% of the world’s population are children. This means that we have a little less than 2 billion of them on this planet. Not all grow up and live under the same circumstances though. The UN says that 820 million people are in severe danger of malnourishment. Children are the first to suffer. Roughly […]
In October 1973, the member countries of the Organisation of Arab Oil Exporting Countries proclaimed an oil embargo. A coalition of Arab countries had attacked the state of Israel. After first advances were beaten back by the much smaller Israeli forces. This incensed the rest of the Arab and Islamic world. As a response, they […]
German literature knows the expression “Schlaraffenland”. A rough and dirty translation into English would be “the land of milk and honey”. German literature and fairy tales used it to describe a fictional land. Everything exists in excess in this land. Water becomes wine, milk or honey. Animals roam the lands already roasted and ready for […]
In May 1969, almost exactly 50 years ago, the Soviet space program made history. The planetary exploration probe Venera 5 sent a lander into the atmosphere of the planet Venus. It was not the first such lander as they tried to land a probe in 1967. At the time they experienced far greater than assumed […]
I was a bookish child. While others honed their skills on the round leather, I devoured encyclopedias. You read right. I thought that I had to read a certain number of pages from the biggest encyclopedia every day. One day, I would have read everything there is to read. I always wanted to know everything […]
I was 18 years old when Robin Williams hit my awareness level with “Good Morning Vietnam”. He was an instant superstar, not only for me. At the time we still had to go fetch clunky VHS videotapes. That’s a plastic box with a magnetic ribbon inside. It stored and replayed movies – for those who […]
What comes to mind when thinking of ancient civilizations? Yes, that’s right. It’s the Romans or classical Greece with its many city-states. But what was ancient to the old Romans? What do they see when they look far back? The fall of Niniveh ended the Assyrian domination of the Middle East. This was to Julius […]
Oscar Wilde once observed that there are two tragedies in life: one is not getting what one wants; and the other is getting it; Developers of new, unsanctioned US-based LNG terminal projects are in a bind. And I don’t blame you if you harbor some concern for them. The US Gulf Coast and the gas […]
15 years ago, North America was any LNG seller’s wet dream. It was the biggest payday ever. North American gas production was going down. The market needed Natural gas like a breath of fresh air. A huge number of LNG import terminal project proposals were on the drawing boards. So many of them up and […]
In 1906, the North American Review published Mark Twain’s “Chapters from my autobiography”. Therein, he ascribed the phrase “There are three kinds of lies: lies, damned lies, and statistics.” to the British statesman Benjamin Disraeli. The phrase has come to be a prime example of the persuasive power of numbers and statistics. Especially when used […]
About 180 years ago, the great Danish writer Hans Christian Andersen published the last of his Fairy Tales Told for Children. “The Emperors New Clothes”. There was no Facebook or Instagram at the time. Yet the storyline could not have been more fitting for our very own times right now. Two weavers had promised an […]
In 1920, an Italian immigrant tricked thousands of New England residents. He made them invest in a postage stamp speculation scheme. He promised that he could provide a 50 percent return in 90 days. He’d use funds from follow up investors to pay off earlier ones to create the illusion of a legitimate business. At […]
The International Monetary Fund released a new report on fossil fuel subsidies. They say that the world spent 5.200 billion USD on them in 2017. According to this report, the US alone spent a whopping 649 billion USD. More than the already quite gigantic defense budget. The US is not the worst subsidizer in this […]
The funny battle against so-called zero-emissions vehicles In Austria, we have a funny saying. When someone misses every opportunity that comes his way, we say that he sleeps in the pendulum clock. It’s a cute mockery at someone who has not seen something coming. Any normal person would have caught that half asleep. The sad […]
Anyone following the current flurry of activity in the Asian LNG marketplace must be startled. The casual LNG observer might have the impression that it’s some contractual clauses that are at the heart of the problem. And that their modification – or even better their removal solves all ills of the world. That’s an almost […]
About two years ago I was deeply involved in some LPG project concepts for Africa. Already then I pointed out to my clients that I would go for LNG straight. But they had their reasons to stick with LPG so I made sure they understood my reservations and I went to work. At the time, […]
Yeah, I know what you are going to say when reading the title. Now he has gone completely nuts. Russia has the biggest gas reserves on this planet. How on earth would imported US LNG ever make sense? For the sake of the argument, I will not dwell on political considerations here. Some nations would […]
This article is more than 1000 days old and has been remastered. Lads, it’s crazy. I have always asked myself why there is so much diesel-electric but there is so little gas-electric. Ever since I have discovered the great potential of LNG (CNG) as fuel at least. You need an economic rationale to get going? […]
This is my last post for this year as I go into Christmas recess. I will be back on January 9th, 2017 with tons of fresh analysis poured onto the fabric of global energy. It’s going to be a fantastic year. But now – how about bringing balance to the force as my last act […]
Some time ago, I have written about the LPG tidal wave that hits us mostly from the US and how it shakes the world in its foundations. LPG (Propane and Butane in whatever mixing proportion you happen to like it) are already a pretty exotic market when compared to crude and other refined produces. Most […]
So, OPEC has finally shown that they mean business and decided that they would reduce oil supply in order to prop up prices. I don’t want to belabor the futility of this gesture as I believe that no reduction any OPEC member would willingly abide by could change the fundamental oversupply situation oil finds itself […]
Dear President-elect Donald J. Trump, This letter might be a little odd for you as I am not an American citizen – neither am I a resident of the United States. I live in Europe. However, the problems afflicting this planet are bigger than just one nation can hope to resolve. The United States of […]
This blog post was written a long time ago and it was sort of sitting on my computer all this time. And as I was asked how LNG actually works for a small flare to LNG to power project, I undug it, dusted it off and here we go. That’s one for the cool ones. […]
My year 1988 was dominated by my mandatory spell of military service in Austria. It was also some form of rupture in my life as my world would never be the same after it. I shook off the shackles of youth and ventured out into the world. Back then, I was sitting with some other […]
So, Elon has announced what he wants Tesla to do over the next years in his new strategic plan. Plus he has shown us that solar roofs can be really sexy. And Tesla’s planned takeover of Solar City shall give his new plans much-needed flesh. It’s all very grand, bombastic and ambitious – as we […]
Look wherever you want, you are swamped by stories on the LNG wave that’s about to hit Europe. After almost a decade of neglect, Europe becomes the powerhouse of global LNG trade again not because of its vanilla qualities but rather because the old world is the last place where LNG exporters with no captive […]
LNG is clean and hence destined to be part of the world’s war against coal. Japan bucks the trend as it increases coal consumption and reduces LNG.
Everyone who has touched upon trading – as the term is understood today – very quickly falls victim to the impression that this casino is the real economy. And that indices, charts, KPI’s and financial market performance is all that matters. It does not take long and the virtual world has you in its clutches. […]
OK, we got it by now. In an unfathomable show of splendor, OPEC has congregated in Algiers in order to show the world that it still matters and that finally, after a zillion attempts and a lot of trepidation (that’s what it felt like at least) it will reduce the volume of crude it supplies […]
In 2005, the Natural Gas world looked at North America to become the El Dorado for all LNG exporters. Natural gas prices in the US were sky high, reserves were dwindling and demand ever growing. It resulted in an LNG bonanza without equal with more than 60 LNG import terminal proposals lining the coasts of […]
After wood, coal, oil and its derivatives, it’s methane gas that will rule the energy world. If you need reasons why this is so, you are a first time visitor to this blog. Piece of advice: clean your schedule for the rest of the day and get reading. For all the rest of you methane […]
It’s one of the most commented topics of the last couple of years. Will Russia provide Europe with all the gas it needs – and whenever the discussion heats up, it veers off into the political realm? I won’t comment on the conflict in the Ukraine in this post and not even on Russia’s willingness […]
After the collapse of communism in 1989, Fukuyama famously predicted the end of history. His words were some of the most egregious blunders in the predicting business as from where I am standing, history is currently making large strides. It’s hard to remember a time in my life which was so dominated by conflict. Even […]
Now that even the most bull-headed traders have understood that high price LNG and the sellers market have gone away, the game has changed. Prodigious additional amounts of LNG will hit the energy consumption world and the question of where it all shall go is burning on everyone’s mind. However, as strange as it seems, […]
Those who have seen the first installment of the famous “Hellboy” series will remember the scene where professor Broom sees Kroenen coming down the stairs and asks the all important question “I see the puppet but where is the puppet player?”. Kroenen was merely a puppet with just the modicum of a free will. The […]
More than 3 years ago I wrote about North America being the El Dorado of energy because of all those exciting developments in shale gas. In a sense, it also became the green beacon of the world as cheap gas has reduced coal usage significantly and might even sniff it out completely. On that matter […]
More than 2000 years ago, before the dawn of the Roman Empire, you would have been forgiven to think that the island world of the Eastern Mediterranean was the center of the world. Some of the most illustrious empires either had their center of power there or were bordering its shores. Today the islands of […]
Joggers know the problem. Every time you jog close to a road with a little more traffic than just an occasional vehicle, an eerie feeling creeps up on you. All this exhaust from the vehicles can sure be no good for me. Wouldn’t it be better to do our rounds in a piece of woods […]
Three and a half years ago I wrote about the Black Mamba. That’s a phenomenon under which a project has overspent in order to get itself built and suddenly that market does not provide the kind of returns needed to allow for the project to generate enough revenues for repaying investments made – with a […]
We are halfway through 2016 and Africa looks set for despair and gloom. Faltering oil prices have brought misery to many African countries that have grown dependent on the oil income and yet, there is a strong silver lining as the easy clippings from oil and gas gave all African nations the wrong sort of […]
For the longest time (about a decade or so) the LNG world was a certain place. The stuff itself was hard to get and expensive, sellers were courted at every whim and Asia paid steep premiums, which is why all efforts have been on this market plus some non-Asian exotics like Spain or Latin America. […]
The new situation we have with comparatively cheaper LNG is sharpening our senses for new opportunities. This happens out of pain experienced by the producers as well as out of opportunistic endeavor in potential consuming markets. Either way, we are all happy takers and won’t look at the teeth too much – won’t we? There […]
Last week we have seen that there is more and more oil coming online despite some problems in other oil-producing regions of the world and also despite the drop in sale oil production that is in full swing now. However, I also hinted that the real toxic problem lies somewhere else. Those who believe that […]
So, OPEC has met and decided that the world is good as it is and there is no change of strategy needed. Who is surprised here? Who is indeed expecting any shift coming from OPEC right now? They are clearly not in the driving seat anymore and if they still are in the seat, breaks […]
Looking at the North Western European coastlines one can see a neat row of LNG terminals from the French Bretagne up to the Netherlands and after Denmark, it continues right into the Baltic Sea to Poland and now Lithuania. What pops out, even more, is the gaping hole made up by Germany. The biggest, and […]
Iran’s sanctions have been lifted a couple of months now and it just looks like, things are not going exactly as planned for the Iranians. My readers will remember that I predicted this outcome in mid-January this year. The reasons are many but the ONE, the big and significant reason can be summarized as “Nobody […]