Why is U.S. LNG Dominating Global Markets?

ENB Pub Note: Why is it important to note that the Japanese shipping firm is increasing the number of tankers and currently has about 30 new tankers on order? One key point President Trump has […]

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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter

Stuart Turley: [00:00:00] When you sit back and take a look about the amount of share buyback, because not only are they borrowing less money, they’re fiscally better off than they were 20 years ago, ESG investing has done the United States oil and gas industry a favor by teaching them how to actually be better self-governing and providing money back. I would rather want to invest in oil and gas companies in the United States. [00:00:33][33.4]

Stuart Turley: [00:00:41] Hello, everybody. Welcome to the Energy Newsbeat podcast. My name is Stu Turley, President CEO of the Sandstone Group. It is just way too much fun here on May 1st on the Energy Newsbeat daily standup. This is a lot of stories we got coming around the corner here. USLNG will be the largest export products as Chris Secretary, Chris Wright in the Trump administration’s meeting. Pretty important points coming out of that one. U.S. Oil companies spend less on interest over the last decade, despite higher rates. Let’s go to Japan, MOL’s LNG fleet continues to expand, and if you can see a thread going on here, India’s HPCL and ADNOC ink and LNG supply deal. And then the last story here… BP to supply feed gas to wood-sized Louisiana LNG. All of these are very huge stories and sprinkled in there with a little bit of nuclear, but buckle up. [00:01:45][64.6][98.0]

Stuart Turley: [00:01:46] Let’s go to the first story. This story is from the Crude Truths substack. I recommend following it over there. Go to the Crude Truth com and check out everything over there as well. I just want to give them a shout out. Let’s take a look at US LNG will be the United States largest export product, Secretary Chris Wright. But buried in this article is Poland’s buying a nuclear plant from the United States and Secretary Chris Wright was there during the signing celebratory mission. But I want to give Ray Trevino a shout out here for this article because when President Trump is out there saying drill, baby drill, and all of the great oil and gas exploration companies in the United States have been giving money back to their investors while remaining fiscally responsible, I think that the regulatory things talked about in this video from Chris Wright are spot on. And I think Ray Trevino is spot on from the standpoint. That the United States drilling cannot be supported at $60 oil. We really need that $70 oil or higher. We can make money, but it’s how you plan your wells out and how you define them out, just not every piece of well or every land is going to be used at $80 oil and the well efficiencies, whether or not they can be used. But let’s go to Secretary Wright in this article that Ray put out. Oil, gasoline and diesel prices have been the lowest in years, saving American consumers. Enabling more affordable and abundant energy is critical for emerging industries like AI to survive. Exporting nuclear reactors to Poland is extremely huge. LNG has become the second largest US export and will soon be the largest. Here’s my warning That’s not in this article from the crude truth. President Trump, you have got to get our ship building in line. I know it’s going to take time, but we’re going to have to buy tankers and flag them just to get around the. Jones Act and we got to get the rhinos up off their carcasses so that we can get the Jones Act killed. It is going to be a big deal to get that thing done. And in here, the secretary right has just a more fantastic points in there. The return of common sense has been Welcome to Cross the Country and the World, and this is exemplified. By Secretary Wright in Poland during the signing of two companies being able to supply the nuclear power plant to Poland. Outstanding meeting and well done, Secretary Wright, President Trump, and Ray Trevino. [00:04:47][180.7]

Stuart Turley: [00:04:47] Let’s go to the next story here. US oil companies spent less on interest over the last decade despite higher interest rates. There’s a lot to this story and unpacking it from the EIA, but I added in a bunch of things in here from a couple of different sources. And when you sit back and take a look about the amount of share buyback, because not only are they borrowing less money, they’re fiscally better off than they were 20 years ago. ESG investing has done the United States oil and gas industry a favor by teaching them how to actually be better self-governing and providing money back. I would rather want to invest in oil and gas companies in the United states than I would in wind, solar or other renewable energy that’s out there. In let’s go through the 2024 to 2025 trends, BP announced $175 billion buyback for Q1, targeting $3.5 billion for the first half and $14 billion by the end of 2025. Northern Oil and Gas increased its buyback program by $100 million. And analysts suggest in April of 2025, like majors like Chevron BP might trim their buybacks back due to a 12% price decline. And I think that that’s, again, smart, and I think it’s temporary because we need over $4 trillion worth of money. And I’m almost sounding like Sean Hannity when I keep harping on about two or three bullet points, but that bullet point is very, very important. And when you want to take a look at. Conservatively in 2024 30 to 40 billion factoring in the BP’s 14 billion dollar plan and northern oil but in 2022 it was 50 to 60 billion dollar buyback so you got to look the numbers are all here listed in here now that’s showing fiscal responsibility on the numbers that I added into the quarterly red in information from the EIA in their article, and it’s because they are better financial modeling handlers and watching everything better than they had been 20 years ago. So when you take a look, they also had relatively high prices in oil. So, pretty good article there. [00:07:27][159.5]

Stuart Turley: [00:07:28] Let’s go to MOL’s LNG fleet continues to expand. Why is it important to note that the Japanese shipping firm is increasing number of tankers and has about 30 new tankers on order. 30 new LNG tankers for Japan. In Japan, 2023, Japan imported approximately 666.2 million metric tons, about 90 point. 4 billion cubic meters of liquefied natural gas making an 8.1 decrease from 7.199 million metric tons in 2022. This was the lowest import volume since 2009, driven by nuclear power restarts and increased renewable energy use. However, that does not diminish the fact that They still have 30. LNG tankers on order. Where did they get those? Australia, 43% of import value approximately to 28.4 million. Russia, about 6.1 million. United States, 5.5 million metric tons. Papua New Guinea, about 2.6 billion in import value, about 4.2 million metric tons. And when you consider that the Japanese shipping firm is really looking at this, This is an important point for President Trump, Secretary Wright, and the Department of the Interior, Secretary Burgum. We need the shipyards rolling yesterday. We need The Jones Act just totally shut down. It is an old treaty law that is no longer needed at this particular point, but we have got to get them going. Otherwise, we will not be able to guarantee shipments of our great LNG exports. And as Secretary Wright said, this is going to be the number one export for the United States in trying to offset President Trump’s trade imbalances. This is a critical holding point that could stop the whole thing right there so either we buy the ships in the temporary run or we’ve got to really put afterburners on and start building ships like we were building in world war two. [00:09:49][141.6]

Stuart Turley: [00:09:50] India hp cl and ad no c ink and lng deal this is very big because in the oil and gas markets. India is critical to global trade and market stability. And I think, and I’m going to go out on the limb, and i think we are close to seeing India being one of the first, if not the first one of, the first trading partners with things outlined in in the tariff things. We take a look at President Trump’s tariff. He is on the right track. I think the market is just being a little bit slow. But he is on the right track. And we take a look at India. If India maintains their growth pattern and China can recover somewhat, we will see a demand going across remaining in the growth pattern in the world for natural gas, LNG and oil. So this is critical. The sources of LNG from in India. Qatar is 48.6, UAE is 18, United States is 11%, Oman 5%, Australia 2, Angola 2, France is 2, Nigeria 1.9. So when we take a look at this article in there, According to the HPCO, the LNG term has been set up as an investment. Of 47.5 billion Indian rupees at the Chara port in Girsumath district in Gerhat. The LNG terminal is a 1.2 kilometer jetty capable of receiving characters of 80,000 CBM to 6,000 CBM and two LNG storage tanks with capacity of 200,000 cbm. This is important. And the more that we can see this, LNG is here to stay for quite a while. Important article on that. [00:11:52][122.7]

Stuart Turley: [00:11:53] Let’s take a look at this last article here. And as we talk about that, you can see on our podcast listeners, I’ve got my favorite hat on, Reese Energy Consulting. And if you go to Reese Energy consulting, they’re the sponsor of the daily energy show. I’m gonna be visiting with Steve Reese and Ingram Carr here soon again on another podcast. Looking forward to spending some more time there. They, he is definitely one of the key leaders in the oil and gas industry, especially in the natural gas. He can help you get your molecules from anywhere in the Permian, the Hainesville or out and out to the market. And if you want it to even go into Germany or in beyond, he can do it. If you have a data center and you want to know where to build Steve Reese consulting is where you need to go. [00:12:40][47.3]

Stuart Turley: [00:12:41] Let’s go to BP to supply feed gas to Woodside’s Louisiana LNG. This is very, again, Louisiana LNG is a compelling investment expected to deliver significant cash generation and create long-term shareholder value. Securing in the gas supply agreement is an important step. Woodside has a long history of successful collaboration with BP. I’m wondering on a side note as I, as I as I’ve talked about this with Michael on the podcast, are we going to see BP actually move and shell move to the United States since the UK has lost their business minds and even their marbles hunting for Peter Pan losing their marbles, as you say. And they could be just absolutely devastating the fossil fuel business. What, is it possible? Hold that thought as we continue on. But this Louisiana exports are a huge part of the President Trump plans. In 2024, the exported an estimated 12 billion cubic feet per day, equivalent of 86.9 million metric tons for the year, maintaining its position as the world’s largest LNG. 2025 forecast US LNG exports to increase approximately 13.7 BCF per day given the new facilities. Woo! So no wonder Secretary Chris Wright is all excited and it’s all working together. The administration and I truly believe that Elon Musk is right and when he said today in the meeting. I believe this is the greatest administration that we’ve had cabinet in an administration since the beginning of this country. I kind of agree with him and I hope that we can finish this out. [00:14:43][122.0]

Stuart Turley: [00:14:43] The one thing I do want to say is I really enjoyed my interview with Mike Umbro and Ronald Stein. I’m looking forward to that one coming out because Secretary Wright and Secretary BURGUM We have got to get a discussion and talk about energy in California because California is a huge disaster waiting to happen. If you think that Spain, Portugal, and France had a blurp because they had an imbalance in the grid, buckle up. I think that we could have some even bigger issues with California in the way that they’ve been managing. [00:15:24][40.4]

Stuart Turley: [00:15:24] So with that, like, subscribe, share, read this to your pets, read this to your kids, have an absolutely great day and do something epic today. Have a great one. [00:15:24][0.0][920.2]