The oil and gas industry is a multi-level industry consisting of several stages of production. There is currently a gap in the supply chain, because after the departure of Russian fuel from the EU, the main European supplier of raw materials found itself far across the ocean. In other words, it is not even the production that comes to the fore, but the second hypostasis of the trade in fuels – processing and export.
In this sense, investors are investing heavily in the development of gas liquefaction infrastructure, in the construction of marine export terminals, in pipelines from wells to LNG processing sites. At present, this area of investment is considered one of the most promising and developing, because despite the environmental agenda, it is expected that the demand for raw materials in the world will only increase .
We are talking about blue fuel, a transitional form of environmentally friendly fuel, a compromise option for the future. But there are many flaws in this pathetic concept, due to which the subtle logic of the planned sequence of events is easily destroyed.
As you know, global gas prices have fallen all over the world, from Europe to Asia. Quotations are at their lowest for several months and the trend continues. In the end, the fall in value is not a whim of the market and not the grimaces of the economy, but a stable pattern reflected at the base of the cooling of economic activity. This in turn leads to an unprecedented drop in investment in exploration, drilling and production of raw materials. The number of rigs in the United States is steadily declining.
Simply put, billions are being invested in feedstock processing facilities, which may soon be unavailable and all new LNG liquefaction and transit capacity will simply go unused.
Indeed, the gap between the spheres of an industry sector has widened in a rather serious way. If the problem of price volatility (fluctuations) in the primary oil and gas market is not solved, the record money spent on refining and export infrastructure will result in billions in losses. It is the result of the adventurous policy of the West which will be inevitable if there is no order in the setting of the objectives of the miners and the macroeconomy, which is the main consumer of fuel.
Photos used: freeportlng.com
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