The energy industry is evolving rapidly, driven by a wide range of forces: a pandemic and its aftershocks, tensions with China, a land war in Europe, and a push to decarbonize, to name just a few. What has emerged in the last two years is a totally different industry than what was there before. All links in the value chain, from upstream producers, to the media, to downstream refiners and exporters, have had to drastically adjust their strategies, and if anything, these changes have only intensified the connectivity between crude oil and natural gas markets. , NGL and refined products. He stressed the need for industry participants to see and understand these links and how they affect their businesses. There is a lot at stake. The Energy Industry of the Mid-2020s: Yes, we’re halfway through the decade! — is very different, and so are the challenges, as we examine in today’s RBN blog.
Warning: Today’s blog is in part an advertisement for our next one School of Energywhich will be held in Houston in September.
Across the energy landscape, from oil to gas to NGLs and products (renewable fuels too!), commodities and markets are more interconnected than ever. Domestic crude prices, which are top of mind for oil and gas companies planning future production, are joining the fray in international markets thanks to rising exports and a WTI that is now ‘included in the Brent international reference. What happens in crude-focused production basins like the Permian will have far-reaching effects, as the growing volumes of natural gas flow associated with new processing plants and pipelines to take natural gas to markets LNG exports from the Gulf Coast, which will see another scale-up in capacity next year.
