What if there was a televised awards show for the oil and gas industry? I bet President Trump would get Best Director.
I hope you all had a fantastic weekend. The Academy Awards were yesterday and many millions of Americans sat through a three-hour long show for movies they’ve probably never seen, rooting for stars whose performances they’ve probably never seen.
Oh, and did you hear there was another Steve Harvey moment at the show yesterday? Before you look into that, let’s get into the top oil and gas headlines from the weekend.
U.S. Will Rival Russia In Oil and Natural Gas Exporting
In 2016, Russia topped Saudi Arabia as the world’s largest oil exporter, however 2017 is a new year. With Trump in office, Rick Perry (former Texas governor) as the head of the Department of Energy, and Rex Tillerson as the head of the U.S. Department of State, the United States will see a drastic increase in oil and natural gas production.
Forbes reports the United States could rival Russia as the world’s largest oil and gas exporter. For one, we’re set to have the capacity to export 10-12 BCf/day of LNG to the world by 2020, which is about ⅓ of the current global market.
Right now we’re sitting at 2 Bcf/day, which provides LNG to about 20 countries. Europe even offered to pay higher prices for our LNG than they do for Russian LNG in the future. Also, in the past few weeks, we’ve been exporting about 1 million barrels of crude oil per day, which is up from basically nothing a year ago.
The pieces are properly moving to ensure that we do become a major exporter of LNG and crude oil, which very well may happen soon.
Iraq Plans Offshore Drilling Efforts To Boost Reserves
Despite their role in the OPEC agreement to cut global supply and lift oil prices, Iraq plans to jumpstart offshore oil and gas exploration to boost reserves. Yahoo reports that Iraq recently logged an increase in oil reserves from 143 billion barrels to 153 billion barrels
Oil Minister Jabar al-Luaibi said he “gave guidance to the Oil Exploration Company about the importance of exploring territorial waters to assess the hydrocarbons reserves and to boost Iraq’s capacity.”
Behind Saudi Arabia, Iraq is OPEC’s second-largest producer, boosting output significantly in recent years.
Philippines Waiting To Lift China Sea Exploration Halt On China
The Philippines is caught in a waiting game as they try to clarify their ties to China. In order to lift a South China Sea exploration suspension, the Philippines needs China to literally clarify their relations with each other.
Reuters reports that any exploration activities by any country needs to be approved by the Philippines before they can head into the South China Sea.
Let’s hope China gets back to them. That’s it for me at The Morning Surge. Doug Krintzman will roll through with another Nightly Surge this evening so you don’t miss the latest oil and gas headlines of the next eight hours or so. See you tomorrow!