Australian LNG

The Brent oil price managed to rally a little Friday night on growing confidence that OPEC will renew its cuts: Of course OPEC will renew.

At The Australian today: The Turnbull government has opened talks with Asian investors to build a coal-fired power station backed by its $5 billion northern Australia fund, as half the nation’s voters endorse the use of taxpayer funds to develop the project and improve energy security.

From the radio this morning: JON FAINE: Innes Willox is the CEO of the Australian Industry Group, one of the most powerful and influential business lobby groups in the country.

Nothing in Australia ever gets done right, or at all.

Via the AFR: The Turnbull government is coming under pressure to intervene to keep the massive Hazelwood power plant open in the face of increasing alarm about power shortages.

Via The Australian comes former Santos chief executive John Ellice-Flint: “Australia’s east coast gas supply dilemma can be viewed as the total failure of users — utilities and manufacturers — to contract short, medium and long-term supplies of gas,” Mr Ellice-Flint says in his opinion piece.

From the excellent crew at Credit Suisse today: When political correctness is key… Perspectives in the domestic gas market, certainly in terms of scrutiny and public perception, have changed beyond all recognition in the past few weeks.

The Bent oil price broke $50 last night but rallied: The news is bearish as Libya returns: Libya’s oil production has reached 700,000 barrels per day (bpd), the National Oil Corporation (NOC) said on Wednesday, recovering from a drop earlier this month caused by fighting at two key oil ports.

Dalian is open and soft but holding: The good ‘ol days return today as Big Iron is getting hosed: FMG is falling -5% and describing a superb head and shoulders topping pattern: The uptrend is broken but we’ll need to see it breach the $5.80 neckline before the topping pattern is confirmed.

From Gotti today: I have a shock for any politician, public servant or political advisor found by the courts to be misleading the public about the dangers of their power and gas policies — they can be jailed.

From the AFR: Shell has responded to the intensifying squeeze on east coast gas with a commitment to provide 10 per cent more gas for the domestic market thanks to a $500 million investment to drill more wells in south-west Queensland.

From The Australian: Australia could resolve its energy crisis “very quickly” if it followed the lead of the US in unlocking its gas resources, the head of oil and gas giant Chevron’s Australian business says.

Dalian is down the better part of -5% today: But nobody cares as Big Iron has barely budged: Any time iron ore is in the $90s there is only downside.

From Essential: It’s obvious.

Gotti maintains the rage on gas today: How in Australia did we elect politicians in both the state and Federal sphere that have let us down so badly by vandalising our energy system?

Via the AFR today: Santos’s $US18.5 billion ($24 billion) GLNG project in Queensland will swallow about 20 per cent of the gas expected to be available this year for users on the east coast, piling pressure on the venture to ease the squeeze by increasing output or restricting exports.

Brent oil held on overnight: The major news item is OPEC mulling its supply cut extension, via Reuters: OPEC oil producers increasingly favor extending beyond June a pact on reducing crude supply to balance the market, sources within the group said, although Russia and other non-members need to remain part of the initiative.

This is pure gas propaganda headlining the AFR today: For some earthy, cut-through clarity on the state of Australia’s gas markets, who better to turn to that Mick McCormack.

Dalian is calm today: Big Iron is easing back as FMG is set up for a monster head and shoulders top, or not: Big Gas has eased too as the afterglow of pwning the PM passes: Big Gold is up again though modestly.