Natural Gas

Who Has the Most to Lose in the Russia-Ukraine Natural Gas Battle

natural gas

Negotiations between Russia, Ukraine, and the European Union regarding Russia's supply of natural gas to Ukraine collapsed again Tuesday.

Despite another stalemate in the discussions, the three parties will resume talks next week. Until then, the gas taps in Ukraine will remain closed.

Money Morning's Global Energy Strategist Dr. Kent Moors joined CCTV again last night and detailed the enormous impact these failed negotiations are having on both countries.

Here’s who has the most to lose if a deal isn’t reached soon…

Natural Gas Prices Will Head Higher on These Critical Factors

natural gas prices

Natural gas prices, like any commodity, are affected by supply and demand - but weather plays a main role in this energy's cost.

In order to forecast where natural gas prices will be trading in coming months, it's important to look at what's expected for this winter and how much temperatures will differ from region to region.

Here's what we know about how weather will move natural gas prices into 2015...

Natural Gas Market Faces Disruption from Russia-China Deal

natural gas market

Russia and China made waves in the global natural gas market today (Wednesday) by finally closing a 30-year deal after nearly a decade of negotiations.

Beginning in 2018, Russia will provide China with 38 billion cubic meters of natural gas annually from its huge fields in Siberia worth about $400 billion over the 30-year life of the contract.

The deal will require the construction of a vast new natural gas infrastructure, with Russia expected to spend $55 billion and China $20 billion.

"This is the biggest contract in the history of the gas sector of the former USSR," declared Russian President Vladimir Putin after the agreement was signed in Shanghai between Gazprom OAO (OTCMKTS ADR: OGZPY) and China National Petroleum Corp (CNPC).

The announcement comes amid recent shifts in the European natural gas market away from Gazprom in favor of more imported LNG (liquefied natural gas) and political tensions between Russia and other European countries over the annexation of Crimea and other threatening moves toward Ukraine.

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Money Morning Global Energy Strategist Dr. Kent Moors said Russia had two objectives in becoming a much bigger player in China's natural gas market.

"They wanted to move Gazprom revenues, essential to Russia's central budget, from a politically insecure European direction to a more amenable Chinese one," Dr. Moors said. "And they wanted to outflank U.S. intentions to use LNG exports as a weapon in lessening Moscow's influence over both the European and Asian markets."

One part of the deal that was not disclosed was how much China will pay, although President Putin did say the natural gas price would be tied to the price of oil, which is how Gazprom's deals with Europe are structured.

The haggling over price was why the negotiations had dragged on for years. In the accompanying video, Dr. Moors discusses why the time was finally right for this deal to happen, which country had the upper hand, and how it will affect the natural gas market in Europe.

Read More…

Five Natural Gas Stocks Drinking Profits from the Utica Shale "Sweet Spot"

natural gas stocks

The Utica shale formation hasn't gotten as much attention as some of the others, but that may be about to change as drillers home in on a "sweet spot" in southeastern Ohio that is producing staggering amounts of natural gas.

Wells drilled in the Utica "sweet spot" were the main reason Ohio natural gas production more than doubled from 89.4 billion cubic feet in 2012 to 203 billion cubic feet in 2013.

This stunning development will pay off handsomely for these five natural gas stocks in particular...

The Irresistible Future of Natural Gas Investing

Today, I'm flying back from Houston... again.

It seems I've been spending quite a bit of time in Texas these days - and for good reason. The rollout of our exciting 25-well oil and natural gas investing project is just one.

But another revolves around the tremendous changes in the industry itself, especially when it comes to natural gas.

In fact, I just presented the keynote address before the annual meeting of the Gas Compressor Association at the Moody Gardens Convention Center in Galveston.

It dealt with the inescapable and irresistible future of natural gas.

Alert: These Energy Stocks Are Most at Risk in the Ukraine Crisis

The Ukraine crisis has taken another turn.

A referendum is now set to take place on Sunday (March 16) to decide if the Crimean peninsula will become part of Russia, and the outcome is hardly in doubt.

The overwhelming majority of the population there is Russian ethnic, speaks Russian, and will almost certainly vote in huge numbers to become part of Russia.

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