All posts by Cyril Widdershoven

The World’s Top LNG Producer Is In Trouble

Global LNG markets are struggling with a glut of unprecedented levels. International expansion in Australia, Qatar, Mozambique and Egypt, combined with a continuously strong US shale gas export drive, is pushing down prices further. Analysts have warned before that a possible LNG glut could end in tears, but nobody was expecting that the market would also be hit by a demand side shock such as China’s coronavirus. The last couple of weeks, major LNG export cargoes to China have been diverted to other clients or are still looking for a destination…

Is Egypt’s Energy Hub Dream Falling Apart?

Since the end of the 1990s Egypt has dreamt of becoming an East Mediterranean gas and energy hub. The discoveries offshore in the Nile Delta at the end of the 20st Century, that kickstarted the LNG boom sparked hope, but regional and internal conflicts which led to the removal of president Husni Mubarak and the rule of the Muslim Brotherhood have significantly slowed down the country’s energy industry.However, new discoveries made in the last couple of years, combined with strong results offshore Cyprus, Israel and possibly even the coming…

Libya Is Facing A New Oil War

Libya’s oil operations have been dealt a blow during the last 24 hours, after local Libyan tribes, allies of Libya’s General Haftar’s LNA, disrupted production at the El Feel and Sharara fields and blocked the transportation of crude oil to the Zawiya export terminal. The fields, producing 70,000 and 300,000 bpd, are the country’s main producing fields. Haftar’s allies acted while France, Italy, Germany, Russia, Turkey and several others gathered in Berlin to discuss a possible ceasefire between the Tripoli based and…

The Iran Crisis Is Far From Over

After a week of extreme turmoil in the Middle East, due to the killing of Iranian IRGC leader Soleimani, Iran’s 2nd in command, and the Iranian missile retaliation, global media and analysts are getting convinced that there is room for negotiation. U.S. President Trump stated that he is open for dialogue with Iran, a move that calmed markets worldwide. Oil prices, which had spiked on the risk of an all-out war between the US and Iran and the possible fall-out for oil and gas production in the region, are now falling back to pre-Soleimani…

Why Banning Fossil Fuel Investment Is A Huge Mistake

Activist global warming strategies have now caused the European Investment Bank to ban its fossil fuel project funding. After more than a year of internal and external lobbying by several EU member states and an ever-growing list of activist NGO and pressure groups, the EIB has decided to cut its financial support for all new fossil fuel projects by 2021. It will also support €1 trillion of investments in climate action and environmental sustainability. This is meant to force European countries to put an end to new gas-fueled power projects…

Could The Aramco IPO Kill OPEC?

The global oil market could be entering unchartered waters in the coming weeks. After the US shale revolution, which threatened OPEC’s hold on and the stability of the market, a new danger is lurking around the corner. The Aramco IPO, the largest IPO in history, will not only impact OPEC but will also have repercussions for the Kingdom, Crown Prince Mohammed bin Salman, and the entire GCC region. Most analysts have pointed out that there are some major issues with the company’s financials, its valuation and possible returns for the…

Is This The End Of The Aramco IPO?

The Aramco IPO has become a headache for many investors having been delayed yet again this week. Banks are now worried that it will be delayed until the end of 2019, which would have a knock-on effect in the financial world as the banks would have been counting on the earnings that the IPO was expected to bring. At the same time, there are no clear signs of the IPO being called off altogether. The very positive statements made by Russian officials, such as Kirill Dmitriev, the chief executive of the Russian Direct Investment Fund (RDIF) during…

The Saudi Crown Prince’s Final Option

Saudi crown prince Mohammed bin Salman has been making headlines again these last few days. After giving an interview to CBS in which he admitted the mistakes of the Khashoggi murder last year, a media frenzy started, with a vast lineup of reports linked to the 1 year remembrance day of the brutal Khashoggi murder, mainly intended to weaken the position of the Saudi crown prince. Unnamed sources are being quoted stating that MBS’s position is being attacked from all sides, including within the Kingdom. Since the emergency of MBS as a main…

The $47 Trillion Death Sentence For Oil & Gas

The future of hydrocarbons is becoming bleak if plans presented by international banks, representing around $47 trillion in value, will be fully implemented. Around 130 international banks, all present at the UN climate change summit in New York, have committed themselves to decrease their support and investments in the oil and gas sector the coming years. The banking groups have signed the so-called Principles for Responsible Banking, which entails a promise by financial institutions to fully support the implementation of the Paris Agreement,…

Is A Full-Blown War In The Persian Gulf Inevitable?

Iran has been able to counter U.S. President Trump’s maximum pressure strategy by taking the challenge to the next level. With a big bang, the global oil market has been forced to rethink the current fundamentals and future prospects, as Saudi Arabia’s most critical infrastructure, the Al Abqaiq gas-oil separation plant (GOSP), was hit by drone strikes over the weekend. After neglecting or outright ignoring increased geopolitical risks and new technological challenges, culprits have hit Abqaiq, which is not only the heart of the Saudi…