OTHER U.S. REGIONS: California Gov Newsom is oblivious that electricity came about after oil; New monster gas wells are outperforming legacy Haynesville deposits; NATIONAL: U.S. natural gas futures price settles lower; LNG shipping rates surge to two-year high as U.S. exports soar; INTERNATIONAL: Oil closes the day up as equities rally; European gas prices fall on strong imports, milder weather forecast; China’s LNG imports set to drop for 13th month.
OTHER U.S. REGIONS
California Gov Newsom is oblivious that electricity came about after oil
America Out Loud News/Ronald Stein P.E.
California Governor Gavin Newsom led a delegation to the COP30 summit in Brazil, positioning the state as a climate leader. However, the article sharply criticizes Newsom for promoting renewable energy while ignoring the world’s critical dependence on crude oil. The author argues that wind and solar only generate electricity and cannot replace oil in manufacturing the essential products and fuels supporting the global supply chain. Warning that abandoning oil without a viable replacement would force civilization back to pre-industrial standards, the piece characterizes Newsom as “oblivious” to these fundamental economic realities while he pursues presidential ambitions. [MDN: Gruesome Newsom is one of the dumbest politicians to come along in a long time. He’s also super sleazy. He promotes unreliable renewables, the same policy that has caused electric and energy rates in his state to skyrocket above almost all other states.]
New monster gas wells are outperforming legacy Haynesville deposits
OilPrice.com/Rystad Energy
Driven by rising US gas demand from LNG projects and data centers, the Western Haynesville region is emerging as a key supply source. Operators like Comstock Resources and Mitsui are developing deep, high-pressure wells that offer double the productivity of legacy sites but at triple the cost. Production has surged to 500 MMcfd since 2022, yet long-term success hinges on reducing high drilling expenses to ensure competitive economics. If operators can lower costs significantly and maintain rig activity, the play’s output could potentially reach 2 Bcfd by 2030, solidifying its role in future US natural gas supply. [MDN: The Haynesville is the chief competitor of the M-U. Keep an eye on it. Our advantage in the M-U is a much lower cost to produce molecules. But then we have to ship them to the Gulf Coast, which is expensive. The Haynesville is close to the Gulf, but it costs a LOT more to extract molecules. It’s an interesting dynamic.]
NATIONAL
U.S. natural gas futures price settles lower
Wall Street Journal
U.S. natural gas futures start the week with losses, but settle above early lows as weather forecasts continue to add cold to the outlook for later this week and into December. “The market has been quickly recovering from any dips and reacting quickly to any confirmation of colder patterns, and winter risk premiums appear justified for now,” Andy Huenefeld of Pinebrook Energy Advisors says in a note. Nymex gas for December delivery settles down 0.7% at $4.549/mmBtu, with steeper losses seen for January through March. The market “remains highly reactive to early-season cold but less convinced about deeper-winter fundamentals,” Huenefeld adds. [MDN: Hey, we’re still sittin’ pretty above $4.50! It’s a great place to be.]
LNG shipping rates surge to two-year high as U.S. exports soar
OilPrice.com/Tsvetana Paraskova
Spot charter rates for LNG tankers on the U.S.-to-Europe route have jumped to $130,750 per day, their highest level since December 2023. This surge is driven by increased U.S. exports and traders holding fuel in floating storage to sell at higher winter prices. While Pacific rates have also risen, the Atlantic market faces acute tightness. This aligns with shifting global flows: Asian LNG imports have dropped by over 14 million tons this year, while Europe’s imports surged by nearly 17 million tons, intensifying competition for vessels despite EU ambitions to reduce gas consumption. [MDN: Like other parts of the oil & gas chain, this is feast or famine. Right now, ship owners are in clover. Sometimes they barely eke out a living. Boom or bust.]
INTERNATIONAL
Oil closes the day up as equities rally
Bloomberg/Staff
West Texas Intermediate crude rose 1.3% to nearly $59 per barrel, moving in tandem with equities and snapping a three-day slump. Despite the daily gain, the market remains nervous as traders weigh US-brokered peace talks between Ukraine and Russia. While progress is reported, a potential deal could deflate geopolitical risk premiums and eventually lift sanctions, injecting more supply into a market already facing a projected record surplus for 2026. With crude on track for its fourth straight monthly loss, analysts expect choppy trading to continue through the Thanksgiving holiday as the market awaits clarity on the negotiations. [MDN: WTI for January delivery was up 1.3% to settle at $58.84 a barrel. Brent for January settlement rose 1.3% to $63.37 a barrel. Moving back into the $60s. Watch for it.]
European gas prices fall on strong imports, milder weather forecast
Wall Street Journal
European natural-gas prices continue to trade below 30 euros a megawatt hour on signs of ample supply amid strong LNG imports and steady Norwegian flows. The benchmark Dutch TTF contract falls 0.8% to 29.50 euros a megawatt hour and is down 7.1% on the week. “Ukrainian peace talks weighed on prices somewhat, while weather forecasts for December suggest milder-than-usual temperatures after a recent cold spell,” analysts at ING say. Colder weather in recent days led to gas storage in the EU falling more rapidly. According to industry group Gas Infrastructure Europe, EU gas storage is now 78.7% full, below the five-year average of 89%. [MDN: Keep an eye on the weather for Europe. At the sign of the first cold snap, or if the proposed peace plan fails, watch for these prices to go much higher.]
China’s LNG imports set to drop for 13th month
Bloomberg/Sing Yee Ong
China’s seaborne liquefied natural gas (LNG) imports are set to decline for the 13th straight month in November, falling 5.5% as buyers prioritize robust domestic output and cheaper piped gas over expensive shipments. With adequate supplies secured through long-term contracts and mild winter forecasts, China has little need to access the spot market. As the world’s top importer slows purchasing, analysts fear a looming global LNG glut later this decade. Even lower prices may not stimulate enough Chinese demand to absorb the surplus created by new international projects coming online. [MDN: China’s getting enough gas from their murdering thug dictator buddy Vlad Putin. No need to import from other (legitimate) places.]