Voestalpine, an Austrian steelmaker with 46,000 employees, saw its revenues decline by 4% last year. It blamed the “cooling down of the global economy,” and “dwindling momentum in Asia (especially China).” Now it’s under pressure to cut costs. Hence offshoring to cheap countries! China or Indonesia? Nope.
Natural Gas
The Quiet Triumph Of Oil And Gas In Obama’s Policies
by Wolf Richter • • Comments Off on The Quiet Triumph Of Oil And Gas In Obama’s Policies
“But The Rising Star Is The USA”
by Wolf Richter • • Comments Off on “But The Rising Star Is The USA”
Aftermath Of A Bubble And What Rises From The Ashes
by Wolf Richter • • Comments Off on Aftermath Of A Bubble And What Rises From The Ashes
Bubbles are a funny thing. Participants don’t see them. Outsiders shake their heads, then get sucked in themselves. Central banks create them but deny their existence. Money piles in on top of money. Risks no longer exist. Result: mayhem, capital destruction, devastation of the industry…. and a new beginning for the lucky ones. Take natural gas.
Natural Gas “Glut” Is Officially VERY Over
by Wolf Richter • • Comments Off on Natural Gas “Glut” Is Officially VERY Over
Some Mile Stones: Working gas in underground storage, the primary measure of whether gas is in over- or undersupply, has now dropped 2.1% below the five-year average for this week, and a dizzying 31.6% below the same week last year. But the price of natural gas – it doubled over the last 12 months – is still below the cost of production.
The Journey Of The Price Of Natural Gas From “Zero” to Dirt Cheap
by Wolf Richter • • Comments Off on The Journey Of The Price Of Natural Gas From “Zero” to Dirt Cheap
The “shale gas revolution” opened up huge resources in the US, and natural gas production jumped as a consequence, but it pushed prices far below the cost of production, for far too long. A disaster for an entire industry. An amazing opportunity for its customers. Since April, the price has jumped 80%, and it’s still far below the cost of production.
Russia’s Gazprom Tightens Stranglehold On Europe, France Falls: Natural Gas War Gets Dirty
by Wolf Richter • • Comments Off on Russia’s Gazprom Tightens Stranglehold On Europe, France Falls: Natural Gas War Gets Dirty
Why would France suddenly prohibit shale gas exploration? Sure, there are environmental issues: flammable drinking water, earth quakes, cows that die, radioactive sludge in sewage treatment plants…. But French governments have had, let’s say, an uneasy relationship with environmentalists. Its spy service DGSE, for example, sank Greenpeace’s flagship, the Rainbow Warrior, in the port of Auckland, New Zealand, killing one person. No, there must have been another reason.
Natural Gas Is Pushing Coal Over The Cliff
by Wolf Richter • • Comments Off on Natural Gas Is Pushing Coal Over The Cliff
Natural gas may be the most mispriced commodity these days. Its price has been below the cost of production for so long that the industry is suffering serious consequences with billions in losses—dollied up as “non-cash accounting charges.” Leveraged players are trying to keep their chin above water by selling assets. And drilling activity is collapsing. But demand for natural gas by power producers has been booming—and it’s killing coal one powerplant at a time.
Natural Gas And The Brutal Dethroning of King Coal
by Wolf Richter • • Comments Off on Natural Gas And The Brutal Dethroning of King Coal
It’s been tough for natural gas drillers. Prices crashed. Drilling activity collapsed. Producers are writing down their natural gas assets by the billions. And the bloodletting continues. On the other side, power generators have switched from coal to natural gas, pushing their consumption of it to new highs. A trend started two decades ago with a new technology and the usual suspect, Congress. A toxic brew for coal.
The Coming Unholy Alliance in Natural Gas
by Wolf Richter • • Comments Off on The Coming Unholy Alliance in Natural Gas
Natural gas traded at $3.22 per million Btu at the Henry Hub on Monday, a seven-month high, and a jump of 69% from its April low. Breathtaking when you think that a few months ago, the doom-and-gloomers, who’d been right for a very long time, were predicting chillingly that the price would hit zero by the fall, when storage would be full and excess production would have to be flared. But the pains for the industry are far from over.