Shifting gears to natural gas for a moment. Beyond the immediate winter weather plays, what are the longer-term structural views on NG? LNG export capacity coming online, US production dynamics, and European demand stability seem to be the key drivers.
I'm a bit more bearish on the long-term European demand stability. The push for renewables there is aggressive, and while NG is a bridge fuel, that bridge might shorten.
Good question. I think the LNG export capacity is definitely the biggest game changer long-term, especially with Europe still needing alternatives.
US production has been surprisingly resilient, but environmental pressures could slow future growth. That's a wild card for sure.
While LNG exports are growing, the cost of liquefaction and transport isn't negligible. Does that cap how high prices can go sustainably for US producers?