Wednesday, December 2, 2015

Thinking of you Christy

Bloomberg Business says, "Spare a thought for anyone who bet on a recovery in liquefied natural gas prices after last year’s 45 percent plunge."

Bloomberg also says:
LNG to northeast Asia, home to the world’s biggest consumers, plunged 27 percent this year, outpacing Brent’s 23 percent slump as of Wednesday. While analyst estimates compiled by Bloomberg show that crude will recover in 2016, prices for the super-chilled fuel will probably extend declines by as much as 23 percent...

“The biggest story is the increase in LNG export capacity,” said Mike Fulwood, principal for global gas at Nexant Inc.’s Energy and Chemicals Advisory in London. Capacity will increase 14 percent through the fourth quarter next year, “while demand is increasing much more slowly in the main LNG importing countries.”

As the price plunge ripples through markets, the growing output is impacting the world’s biggest producers of the fuel. Qatar waived a $1 billion penalty for lower imports under an Indian contract, while Russia’s Gazprom PJSC offered its first-ever gas auctions in Europe in September.

LNG for delivery in the next four to eight weeks in Asia cost $7.40 per million British thermal units as of Nov. 30, according to WGI. The spot price may fall as low as $5.70 next year...

The global oversupply will reach as much as 31 million tons, or 8 percent of capacity, by 2018, according to Bernstein.

The glut is widening as Japan, South Korea and China aren’t importing as much as they used to amid slower growth, over-contracting and expansion of nuclear capacity. China’s LNG imports may this year decline for the first time since they started a decade ago...

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  1. So BC, how's that northeast coal thing going for you?

  2. Low natural gas prices should help out the consumer, right? Maybe not. I just paid my last Fortis bill for natural gas. I only use natural gas to heat my house.

    For the month of November, the cost of gas was $16.66. Great, eh? But my total bill was $100.36. How can that be? Here's a breakdown:

    Basic delivery charge: $12.06
    Delivery charge: $45.06
    Storage and transport: $8.94
    Cost of gas$16.66
    Franchise fee: $2.56
    Carbon tax: $9.98
    Clean energy levy: 0.34
    GST: $4.76

    Holy smokes! It costs $57.12 to delivery $16.66 worth of gas? The carbon tax is almost as much as the price of the gas!

    When I first switched to natural gas in about the year 2001, I only paid for the gas (I think gas was supplied by BC Gas at that time, and I think it was a crown corp). Slowly over the years more and more surcharges have been added that skyrocketed the cost of gas.

  3. Photo-op still will get reelected because those who vote for the BC Liberals are American Tea-Party acolytes, who will vote for any right wing-nut they can. This under educated, and largely myth inspired people believe in pixie dust and fairy tales. A sad comment on BC, but I am afraid an accurate one.

  4. This is what happens when the people in power, do not understand petro politics, let alone the market factors and industry that they are trying to "create" in this province.
    You and your minions are done Christy. The liberal brain trust has failed you big time on this one.
    Coal, another boon doggle that never quite measured up to the hype.

  5. G. Farrell-Collins: How would I characterize the government's continued comments on the bright future of British Columbia's economy? I suppose, when you're at the bottom of a valley, anywhere upslope looks higher than where you are at the present time. For the minister (J. MacPhail) to say that a number of indicators in the last quarter have started to trend upwards. . . . I think that while it's nice to hear, it's going to be an awful long time before we get anywhere near where we were prior to the downturn. - BC HANSARD JUNE 1, 1999

  6. Well Chrispy, what have you got for Plan B? What! No Plan B? Most leaders with a modicum of intelligence would have some fallback. Guess that says it all!

  7. It seems that Christy and her gaseous minister ascribe to the Chris Christie principle when it comes to important issues. Go with a feeling, not outside expertise.

    The problem is that they’re feeling around with the future of this province with no plan B and as a result our kids and grandkids are going to have more than their feelings hurt.

  8. So Christy Clark will now double down with BC future.

    It just flabbergasts me that someone with her experience (complete lack of) can run a multi billion dollar business (BC) and pi** away our future.(our Kids not hers)

  9. Christy, photo op queen, will likely hold a press conference to tell us she is going to pay these countries to take our LNG and increase our health care premiums to pay for it. It will create jobs, jobs, jobs.

    There can't be that much money coming into the provincial coffers and that woman promised us trillions and trillions of dollars to pay the debt and take care of everything. she promised a 100K jobs. All we seem to have is long lines at the food bank, diminishing health care, kids in care dying, homelessness and no increase in welfare or disability rates since god knows when.

    Can I sue photo op queen for false advertising? I pay premiums for health care but don't think I'm getting enough for what I pay, especially when compared to the other provinces.? Can I sue? its a thought.

  10. Norm, this whole LNG thing is supposed to bring jobs and lots of them according to Christy & her entourage. We can all agree that the big promise od LNG in 2015 is dead. There is no doubt the Liberal PR team is coming up with new slogans that will tell us all... " promises made, promises kept ". This can only be done by juggling a few dates and the message that LNG is already spending millions in BC.

    Despite all that I'm very curious about something I read this morning. It's from Stats Can " Employment in British Columbia was virtually unchanged in November, and the unemployment rate was 6.2%. However, employment in this province has been on an upward trend since the spring, bringing year-over-year gains to 60,000 or 2.6%, the highest employment growth rate among the provinces."

    Now if that's true, can we expect another million dollar ad blitz trumpeting the fact that Christy created jobs better than any other Premier in Canada ?

    Guy in Victoria



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