Daily Energy Report

LNG exports to reach record high, Saudi exports plummet, European gas demand booms, California EV truck delusion, US grids straining, Russia’s fuel shortage, Drought impacts Panama Canal, and more.

Note:

We will not publish the Daily Energy Report on Monday because of the Labor Day Holiday.

Chart of the Day: US LNG exports will reach a record high this year, but Europe is not out of the woods yet.

Summary

Figure (1) above shows US LNG exports by destination. Most of the US LNG exports went to Europe in the last two years to replace some of the Russian gas.

EOA’s Main Takeaway

Recent data, not shown in the chart, shows a shift in LNG exports to Asia. However, while the hurricane season will reduce US exports, it will affect Europe the most. Full storage in Europe assumes a continuous flow of natural gas. Any reduction in the flow will affect gas balances in Europe. 

The current recession in Europe will force US LNG exports to find other markets. In addition, it will reduce Europe’s need for Energy in general and LNG imports in particular. A recession will help Europe even if the winter is severe. But a quick economic recovery with a severe winter means high energy prices again, and probably record high spot prices for LNG.

Story of the Day

Baker Hughes: Total Rig Count Declined by 1

Summary