Why Japan’s utility firms want to pull the plug on destination restrictions for LNG supply
A hardened feature of long-term LNG contracts, the destination clause, is coming under renewed scrutiny as the quest for flexibility gathers momentum.
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Bob McNally, a Non-Resident Fellow at the Center on Global Energy Policy and former Special Assistant to the President on the National Economic Council from 2001-2003, published an op-ed in the Wall Street Journal critical of how the IEA’s mission has changed to where it is today. In response, Jason Bordoff, the Founding Director of the Center on Global Energy Policy, shared reflections and critiques of points made in the piece on LinkedIn.
The shock oil markets have suffered from the coronavirus and the ensuing market-share war between Saudi Arabia and Russia has sent prices plummeting to levels not seen since 2002 and altered the outlook for supply and demand for the immediate future.
In this commentary piece, Bob McNally, a Fellow at the Center on Global Energy Policy and Founder and President of The Rapidan Group, explains how OPEC abdicated the role of market manager over ten years ago--not just in the last year--and that we have already seen the results in a boom (2004–2008) and two busts (2008, 2014–2015) in oil prices.
A combination of slowing global demand, recovering Libyan output, and strong US supply growth has caused a steep decline in oil prices.