Bangladesh Pays Record Prices for Two LNG Shipments
Bangladesh bought two liquefied natural gas (LNG) cargoes for delivery in October at record prices, two industry sources said on Friday, as low inventory in Europe boosts competition with Asia for supplies ahead of winter.The south Asian nation bought one cargo from trader Vitol for delivery in mid-Oct. at $35.89 per million British thermal units (mmBtu) and another from Gunvor for late Oct. delivery at $36.95 per mmBtu, said an official of state-run Petrobangla."Winter is yet to come but prices have gone crazy…
Drilling Industry Stretched By High Demand
The lure of higher oil and gas prices has pushed the number of rigs exploring for oil and natural gas in the United States to a 10-year high, stretching the drilling industry close to its limits. The domestic rig count reached 1,163 during the week ending March 23 - the highest number since December 10, 1990 - when 1,179 rigs were in use, according to oil services firm Baker Hughes Inc. Spurred by record gas prices and the biggest oil market boom for two decades, independent U.S. energy companies are putting their record revenues back into extra drilling, but are finding it increasingly difficult to staff the growing number of rigs. Unlike 10 years ago, exploration for natural gas has eclipsed that for oil, and analysts say the increase in rig use this year has not yet peaked.
BG 1Q Profit Doubles on LNG, Higher Prices
BG Group Plc. said profit more than doubled in the first quarter, exceeding expectations, as prices rose and it increased sales of liquefied natural gas to Europe and Asia. Net income jumped to $1.06b from $477m in the year-earlier period. Profit of $989m was expected, according to the median of 10 analyst estimates collected by Bloomberg. Revenue rose 80 percent to $3.5b. BG Group boosted earnings at its LNG unit five-fold by completing a plant in Egypt ahead of schedule and selling cargoes to Japan and Europe, where colder-than-normal winters stoked price gains. Production grew by 28 percent, while LNG operating profit increased to $254m as the company shipped more cargoes to Asia. Pretax profit leaped to $1.7b from $805m in the year-earlier period.
Greasing the Skids
Record gas prices, OPEC solidarity and a U.S. administration doling out incentives for exploration and production all add up to good news for those companies conducting business in or profiting from the offshore market. There is little doubt that the international offshore market, led by the Gulf of Mexico, is poised for a record rebound in the second half of 2001 and beyond. The tandem of high crude prices — spurred by OPEC's seeming solidarity on controlling output — combined with the emphasis on expanding offshore production by the new U.S. administration seemingly provides the proverbial "win-win" for all companies that makes its living finding and recovering resources, or those companies that supply vessels, products and services to the offshore oil business.
