Oil & Gas
Crude oil, natural gas, NGLs, LNG and refined products — the markets that move producer revenue.
West Texas Gas Production Likely to Increase, How Will Waha Basis React?
The Waha forward curve has been volatile over the past nine months and not volatile in the usual way everyone is used to. Parts of the Waha curve have rece...
· Jay Stevens2 min read
Dearth of Appalachian Egress Capacity Additions Limits Potential Production Growth
Over the past few years, Appalachian production has followed a seasonal pattern where supply increases during the winter season and winds down slightly dur...
· Nick Hillman3 min read
Enbridge Line 3 Replacement Project Nears Completion
After years of legal and regulatory challenges and delays, Enbridge has announced that it will offer 620 MBbl/d of capacity on Line 3 for October, represen...
· AEGIS Market Analytics1 min read
OPEC+ Has More Supply Than Oil Markets Can Handle
OPEC+’s stated spare capacity is near 5.8 MMBbl/d when accounting for Iran sanctions. The group’s planned supply hikes may leave it without s...
· Nick Hillman2 min read
WTI's $70 Price Swing - Has Price Volatility Changed Producer Hedging Behavior?
Hedging behavior is an interesting science to us. Our advisory discipline considers each individual company’s corporate objectives, risk tolera...
· AEGIS Market Analytics3 min read
Power Generation From Natural Gas Shows Resilience
The proportion of natural gas burned in July for electricity has not followed conventional norms. As a percent of thermal load (coal+gas), natural ...
· Jay Stevens3 min read
Not So Fast, Canada
End of Summer Maintenance Puts AECO Basis on the Skids Just as gas prices continue the party, the helicopter parent named TC Energy has set an early curfe...
· AEGIS Market Analytics2 min read
UAE Ruins the OPEC Party
It appears UAE is willing to blow up an OPEC+ deal so it can produce more of its own oil, but the situation is fluid. During the day Thursday, repor...
· Matt Marshall2 min read
You Must Be Prepared to Hedge Successfully: Lessons in Gas Price Volatility
June 29 was a normal “up” day for a while, then accelerated. Gas prices started the morning up around +5c, but rocketed to +20c. Unfortunately,...
· Lauren Trice2 min read
Alberta Gas Supply Suffering from Summer Hot-Offs
Alberta Field Receipts Drop to 10.3 Bcf/d as Heat Wave Hovers Over WCSB We are pretty well versed in writing about freeze-offs, but we struggled with this...
· AEGIS Market Analytics2 min read
Propane Prices Hit Highest Seasonal Level Since 2014
Strong domestic demand, low domestic inventories, and high exports have helped fuel a rally in propane prices. Prices have doubled from where they were dur...
· Nick Hillman3 min read
Non-Thermal Outages Lift Gas Demand In Mid-June
Natural gas usage for power generation has overperformed in June. Is this a preview of what is to come this summer? Let's look at weather first. T...
· Jay Stevens6 min read
Beware Gulf of Mexico Producers; Hurricane Season Is Here
The NOAA is predicting another above-normal Atlantic hurricane season, and everyone with production exposed to areas prone to hurricanes needs to be aware.
· Nick Hillman2 min read
AECO Prices Have Been Impressive Lately - How Long Will the Party Last?
AECO prices are the best they have been in the past four years, but the next several months require careful balance of supply vs pipeline availability. ...
· AEGIS Market Analytics4 min read
Feds Force TETCO to Reduce Flow; SW Appalachia Basis Sinks
TETCO announced that the earliest the 30" line pipeline between Kosciusko and Uniontown would be returned to full rates will be late 3Q 2021. Henry Hub prices were lifted late on Thursday, June 10, in after-hours trading. The prompt month July gas contract settled Friday at…
· Jay Stevens3 min read
Canadian Crude Update
Canadian Differentials Widen; Enbridge Heavy Crude Apportionment Increases to 52% Friday marked the last day of trading for June Canadian crude differenti...
· AEGIS Market Analytics2 min read
OPEC Doesn’t Have Enough Oil
Spare capacity could be exhausted in under 12 months if OPEC’s new global demand and supply estimates come true in 2021. In its latest month...
· Jay Stevens3 min read
Waha Prices Higher than Hub, and It Could Continue
The Waha forward curve has dramatically improved over the past year, so much so that certain contract months and the Winter 2021-2022 strip has moved to a ...
· Jay Stevens3 min read
Oil Demand Recovery Faces Uncertainty as India COVID-19 Outbreak Worsens
India reported 379,257 new COVID-19 cases on Thursday, April 28, with 3,645 new deaths, making it the deadliest day for any country since the start of the ...
· AEGIS Market Analytics2 min read
Propane Prices Stumble In April
Prompt-month propane price has fallen from its highest level since late 2018. Mt. Belvieu propane gave up 14 c/gal between April 5 and April 15, marking th...
· AEGIS Market Analytics2 min read
Gas Demand Suffers from Wind, Coal Displacement
A massive renewable build-out in late 2020 and higher regional gas prices are hampering power-generation demand.
· AEGIS Market Analytics2 min read
Waha Basis Summer Contracts Best Since 2016
Natural gas prices in the Permian basin have continued to improve as demand markets in Texas and on the West Coast compete for molecules. Waha basis for Su...
· AEGIS Market Analytics2 min read
A Full Recovery In Jet Fuel Demand May Take A While
Jet fuel is an important refined product for crude oil demand, but it may be years before there is a return to pre-COVID levels. Demand for liquid petrole...
· AEGIS Market Analytics2 min read
Two Haynesville Area Pipeline Projects Due in 2021
The Haynesville Shale play that straddles East Texas and Northwest Louisiana will soon welcome new infrastructure projects to transport natural gas to ever-growing demand markets. Two projects are due online this year, while others won't bring additional egress capacity until Late 2022 or 2023.
· AEGIS Market Analytics2 min read