The shale industry continues to grow as oil prices stay low. In addition, Cheniere introduces the first facility to export natural gas in the U.S. and the American Petroleum Institute establishes new standards in offshore drilling.
The U.S., Cheniere Energy’s Sabine Pass, is expected to be completed in Louisiana late next year making it the largest supercooling facility for natural gas in the country. With an average price of $4.47 per million BTUs, Cheniere predicts that by 2020, it will become the largest buyer of natural gas in the U.S. “This is the first time that there will be LNG on the market that is truly price-sensitive and totally open to the destination that needs it most,” said Charif Souki, chairman and chief executive officer of Cheniere.
As oil prices continue to decline, OPEC has begun making preparations. With oil below $80 a barrel for the first time in four years, industry experts are looking into future solutions as they prepare for the effects that’ll impact the global market. “We’re watching them descend into panic mode, rushing from capital to capital in search of an agreement. They may cobble together something before the meeting but I’m still skeptical that they will,” said John Kilduff, partner at Again Capital, LLC.
According the International Energy Agency, the U.S. shale industry is continually on the rise with no sign of slowing down. Despite the declining price in oil, U.S. shale production is reaching over 12 million barrels a day. “Production growth shows few signs of abating. Efficiency gains in light, tight oil production have been constant, and price pressures would only provide more impetus for producers to cut costs further,” said the International Energy Agency.
In an effort to make offshore resources more accessible, The American Petroleum Institute (API) has recently published five new offshore drilling production standards. The publication includes recommended practices pertaining to the design, construction, operating conditions, foundation engineering, and management of fixed offshore structures.