Today’s Blog – Tuesday 30th August 2016

We only have time for a short flash blog today.  Travel commitments over the rest of this week will render blogging services somewhat intermittent

Editorial

And its handbags at twenty paces!

A very interesting debate has erupted recently between the lefty/green-ish IEEFA (Institute for Energy Economics and Financial Analysis) and Adelaide’s own energy consultancy, EnergyQuest.

The IEEFA recently pointed out (as we have for some time) the interesting juxtaposition between Pacific LNG spot prices and recent high Australian domestic gas prices (although our description is a gross simplification).

EnergyQuest has pointed out the difference between wholesale and retail prices in Japan, etc.

And now IEEFA has outed EnergyQuest as part of a nefarious “cabal” of Australian gas producers (note to IEEFA, if you were a shareholder in the companies that make up this cabal – as this blogger and many of our readers are – you would recognise that they cannot organise a p*ss-up in a brewery, let alone a vast right wing conspiracy).

And even worse – EnergyQuest founder, Graeme Bethune (hello, Graeme!) has been outed as an ex-executive of arch-cabal member, Santos (note to IEEFA – everyone in the Australian oil patch is an ex-executive of Santos – it is compulsory under the Australian Constitution).

Game on here – c’mon FAR and Woodside – keep up!

Commodity prices

Crude slipped ~1.3% overnight to close at US$49.26 in London and US$46.98 in New York.

A rising US dollar and negative “OPEC whispers” about rising Iraqi production, etc, were the bear factors du jour.

Henry Hub meanwhile continued to rise, closing at US$2.90.

LNG and international gas

The one seeming bright-spot in international green-fields LNG projects seems to be Mozambique – which given its comparative sovereign risk is a real poke-in-the-eye for the likes of the Western Canadian projects.

The Mozambique Government has recently approved the terms of sale of LNG from an ENI led FLNG project.  Boxes are being ticked somewhat more quickly than many would have expected.

Quote(s) of the day

We note that US comic legend Gene Wilder has just passed away and have sought out the following quotes from his extensive classics of the 1970s in particular:

“These are people of the land. The common clay of the new West. You know… morons.” — Jim (Blazing Saddles)

“No, it’s pronounced ‘Fronkensteen.'” — Dr. Frankenstein (Young Frankenstein)

“I’m not going to the toilet, I’m going to showbiz!” — Leo Bloom (The Producers)

 

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