Winter Is Coming: The Rise Of Liquefied Natural Gas In The Energy Market – Not Everyone Will Be A Winner
Portfolio Pulse from Kevin Green
The energy sector is in the spotlight due to fluctuations in oil prices and a resurgent interest in heating oil. Liquefied natural gas (LNG) is expected to gain significant attention due to volatile inventory levels in the EU, labor disruptions in supply hubs, and geopolitical tensions. The U.S., a major player in the global LNG market, exported 3.8 trillion cubic feet of LNG in 2022. Last week, a dip in EU LNG inventories and Chevron Australia’s LNG strikes led to a spike in the price of UK Natural Gas and Henry Hub futures. Chevron (NYSE:CVX), ExxonMobil (NYSE:XOM), Cheniere Energy (NYSEAMERICAN: LNG), and Shell (NYSE:SHEL) are mentioned in the context of the LNG market.
September 12, 2023 | 3:52 pm
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POSITIVE IMPACT
Cheniere Energy is positioned to capitalize on the benefits from a surge in demand for LNG in the coming months.
Cheniere Energy, as a specialized player in the LNG market, is likely to benefit from the surge in demand for LNG, potentially leading to a rise in its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Shell is positioned to capitalize on the benefits from a surge in demand for LNG in the coming months.
Shell, as a specialized player in the LNG market, is likely to benefit from the surge in demand for LNG, potentially leading to a rise in its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
ExxonMobil might have limited exposure to LNG in relation to their total revenue mix.
ExxonMobil's expansive portfolio might limit its exposure to the LNG market, making the impact on its stock price neutral in the short term.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Chevron's LNG strikes may impact 5-10% of global supply, leading to a spike in natural gas prices.
Chevron's strikes may disrupt the global LNG supply, potentially leading to a rise in prices. This could negatively impact the company's stock in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80