Prices of natural gas have fallen precipitously in recent months as the global COVID-19 pandemic deepened the already existing misalignment between growing supply and relatively sluggish demand. Post-COVID-19 recovery should increase the demand through 2022, but a soft market is expected to continue through 2025. These conditions could provide an unprecedented opportunity for natural gas buyers/importers.
Rather than offer a forecast that may overstate or understate Covid-19's impact on the U.S. and global economy, the authors highlight what to look for as the pandemic progresses, recedes or oscillates.
A social safety net in the form of unemployment benefits, job training, etc. can help cushion the blow for workers when economic events beyond their control (like the Covid-19 pandemic) cause companies to shed workers, writes Mark Finley, fellow in energy and global oil.
A new proposal to clarify and expand U.S. sanctions on the Nord Stream 2 (NS2) pipeline has just been introduced in the U.S. Senate. With many other difficulties facing the NS2 pipeline, the authors look at what options Russia has for NS2 completion.
As oil prices start to recover, analysts are cautiously beginning to ask whether we’ve turned a corner — but for the weeks ahead, continued inventory builds pose significant risks of renewed price declines.
Legislation regulating commercial transport by ship is impeding economic development and growth, the authors write. Read the post on the Baker Institute Blog.
This post originally appeared in the Forbes blog on April 9, 2020.
Kenneth B. Medlock III, Michelle Michot Foss, Anna B. Mikulska, Ted Loch-TemzelidesApril 9, 2020
Energy fellow Mark Finley argues that the best way to support the U.S. oil and gas industry is to promote open and fair competition, even though conventional resources are cheaper to produce in Saudi Arabia and Russia. Forbes blog: https://bit.ly/2wWB3jz
Nonresident fellow Anna Mikulska explores the future of natural gas markets in the aftermath of the Covid-19 pandemic. Forbes blog: https://bit.ly/39zeNJK
Despite the Trump administration sentiment that the U.S. partner with Saudi Arabia in a joint oil alliance, such an approach is unlikely to be successful, write energy fellows Jim Krane and Mark Finley. Forbes blog: https://bit.ly/2WUa6rb
Coronavirus cases in Texas may grow as the state expands COVID-19 screening and the consequences of delayed decisions to limit public interactions set in. "No one should be surprised lim or panic as the figures roll out," write the authors in the Baker Institute Blog.
Hagop M. Kantarjian, Mary Alma WelchMarch 24, 2020