China Is Erasing The Gas Glut

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Oil Price: China and other countries in Southeast Asia are helping erase the LNG glut, which was thought to last well into the next decade.

China is in the midst of a radical overhaul of how many of its citizens heat their homes. The government has made an aggressive push to scrap coal burning, particularly in smoggy cities, replacing home coal furnaces with natural gas. The effort has been so successful, arguably too successful, that there has been natural gas shortages this winter.

At the global level, China is helping to eliminate the glut of LNG, which many analysts predicted would stretch into the 2020s after a series of high-profile LNG export terminals came online in recent years. more …

Benjamin Netanyahu, Vladimir Putin photo: Reuters

Opinion: Supply and demand is basic economics. But when it comes to Israel’s gas reserve, it is a flash point.

Reuters: February 2. 2015 “Russia wants in on Israel’s gas windfall. Russia relies on Gazprom both to fund its budget and provide Moscow geopolitical leverage, and the Russians would surely prefer that Israel’s gas does not compete with Gazprom’s supply. This is particularly true vis-à-vis Gazprom’s core European market, which Moscow naturally remains keen to protect.

Globes (.com) April 24. 2016 “The Russian press reported at the end of last week that Russia was seeking to enter the Israeli natural gas industry, following a meeting in Russia last Thursday between Russian President Vladimir Putin and Prime Minister Benjamin Netanyahu.

It is believed that Putin wants to take part in the development of the Leviathan gas reservoir. This was not the first time that Russia has tried to strengthen its foothold in the Middle East through control of gas reservoirs.”

Israel’s gas reserves are far more than needed for the Jewish state, and taking in a partner sounded like a strategic idea during the Obama years (which had constant tension between Israel and the White House), and during which Obama’s CIA  Director, John Brennan, maintained a love affair with Hezbollah who is now threatening to bomb Israel’s gas rigs.

Image result for will obama allow hezbollah part of israel gas reserves

With China’s 1.4 billion people switching to natural gas, the stakes got raised.

Three days ago, two oil companies, one Israeli and one US, signed $15 billion in deals to export natural gas to Egypt over 10 years. And Russia is not happy.

(see the war of Gog and Magog in Bible Prophecy 101 chapter 6 here)