Introduces Simon Lack and asks for his outlook on the energy market given high tensions in the Middle East.
Kevin Green
Simon Lack
Commodity prices will continue to trade up. Tanker traffic will be unsafe for a while, and a truce is needed for trade to reopen, which isn't seen in the near term. This is very good for US companies and natural gas exporters.
Asks if this situation makes US LNG the alternative for global needs.
Kevin Green
Simon Lack
In the short run, US export capacity is limited, but over the long run, it's very bullish for US LNG exporters like Venture Global and Cheniere.
Asks how significant current oil price levels are (WTI >$86, Brent >$88) and if we are heading toward $100/barrel.
Kevin Green
Simon Lack
Oil prices are a problem and are going to go up. There is a political cap (a 'Trump put') that will likely trigger intervention if oil goes above $100.
Asks which parts of the US gas infrastructure value chain benefit most from stronger LNG demand.
Kevin Green
Simon Lack
The companies that liquefy natural gas (Cheniere, Venture Global) are in the sweet spot. Companies providing feedstock, like Williams and Energy Transfer, will also do well.
Asks what the market is missing right now across the energy space.
Kevin Green
Simon Lack
The market is missing the long-term benefit to US LNG exporters. The recent price move is about near-term opportunity, not the long-term structural bullish story of US safety vs. Qatar's risk.