My next installment of Oil and Energy Investor will be coming from overseas.
Marina and I will be spending Thanksgiving this year in Doha, the capital of Qatar on the Persian Gulf. Following that, after another long flight, we will find ourselves in Singapore for more than a week.
Of course, though this trip is hugely important, there is always one thing I have to contend with on a long journey such as this.
Whenever I find myself in Asia, the time difference always seems more difficult to negotiate. It is 13 hours later than East Coast U.S., and that is usually the wrong direction for my body to assimilate. This time, with everything else going on while there, the schedule is likely to be more difficult than usual.
However, this may well be one of the most important trips I have taken in some time – making my jet lag irrelevant.
It involves bringing together some of the elements I have discussed here in Oil & Energy Investor for a while, combining a major address at Asia’s largest annual energy conclave and private meetings with some of the most liquid energy investors.
This will involve the largest assemblage of billionaires I have ever seen under one roof.
In other words, there are some real heavy hitters in the investment world coming together in Singapore in the coming days.
My reason for being there is merely the latest in a recent string of important international political and financial meetings being held in this sparkling city.
The Annual Singapore Conference and all Its Glory
The conference is called OSEA 2018, Asia’s primary oil and gas affair.
Each year, OSEA brings together major energy figures, public officials, companies, and analysts from around the world to discuss Asian energy prospects. This year, more than 4,000 people are expected to attend, including major political and corporate figures from around the globe
Of course, in addition to the official program, OSEA is also an occasion for some high-profile “side bar” meetings, the ones that generally strike huge deals or set major policies likely to change the horizons of energy.
For veterans of such proceedings, it’s who meets who in the corners of the official program that often carries the greatest interest.
Especially if early indications point to some significant changes in energy investment coming out of the meetings.
In addition, OSEA is being held at the hotel that has redefined the Singaporean landscape, and is fast becoming one of the most recognized luxury locations on the planet.
It looks like this:
Singapore’s Marina Bay Sands Hotel Photo: Las Vegas Sands Corporation
My base of operations for more than a week will be a club suite in the upper reaches of the hotel (just below the largest rooftop garden and infinity swimming pool in the world).
The suite will serve as both residence and a conference room for some very closed meetings.
The official OSEA program covers three days. I will serve as conference chairman for the first day, with my featured presentation on the second. Interspersed before, during, and after are a series of private meetings with some very heavy hitters.
I’ll be filing updates as the visit progresses. But today, I want to give you a preview of what my public address will cover, providing you a first glimpse of some of the slides I will be using.
My presentation is entitled “How U.S. Global LNG Exports Will Impact the Asian Market: New Structural and Financial Considerations” and it has three essential parts…
A Shift in Energy Focus
First is a discussion we’ve had on several occasions here in Oil & Energy Investor, and that is that the center of global energy demand is rapidly moving to Asia. This will progressively be the case for at least the next three decades, and much of that will be driven, at least initially, by the market power of China.
However, the focus will be shifting to India by the mid-2020s. There is no question, though, that international prices of crude oil will be set in Asia.
Source of Basic Data: IEA, World Energy Outlook 2017
Of even greater interest is the fact that this is going to become the case with natural gas as well.
Traditionally, transit via pipeline has governed where the gas hubs are (due to the confluence of pipeline connections), with prices set there.
This is now changing.
The rise of liquefied natural gas (LNG) shipped by tankers will set up new hubs serviced by regular shipments. Domestic pipeline networks will still provide local delivery, but the spot prices at new LNG hubs will fundamentally alter the dynamics of global pricing.
Once again, the LNG market will find Asian demand dominant, while Europe/Atlantic Basin comes in at a distant second.
And that brings us to point number two…
America Is Becoming an LNG Powerhouse
The U.S. has undergone a massive change from a net importer to a net exporter of natural gas.
By the early 2020s, U.S. exports will occupy the swing position in the global LNG trade as massive export capacities come online.
Source: Global LNG Hub
This translates into U.S. exports emerging as a main player in Asian energy. The trend is already apparent as American LNG starts hitting the Asian market.
Two primary caveats in all of this have also been the subject of previous conversations in Oil & Energy Investor: The broadening U.S.-Chinese trade war and the deteriorating situation in the South China Sea.
As shown by this image from the U.S. Energy Information Administration (EIA), the contentious South China Sea also just happens to be a major LNG shipping route.
This simply attests to my mantra that geopolitics have impact.
Nonetheless, and despite the global push and shove, all of this is going to provide a nice base for ongoing investment profit opportunities…
Investment Opportunities are Growing – And Quickly
The third part of my OSEA address is the public version of the single biggest international change I have seen over more than forty years of sector work.
The level and intensity of new worldwide investment channels in energy are expanding. Over the past 18 months, I have been introducing approaches in this expanding environment for use in advising foreign money investors; these folks are private, and what is happening is beginning to change the investment landscape.
As I said, my presentation at OSEA is the public version.
The more detailed picture is what I have been advising these billionaires at a series of private gatherings in places like London, Paris, Lausanne, Milan, Abu Dhabi, Frankfurt, Algiers, Dubai, Rio, and Doha over the past year and a half.
Singapore is now to be added to the list.
Notice two aspects:
- These are genuinely global in scope,
- None of these has taken place in North America.
What is underway is not American sourced, even though some of the eventual investment targets may end up there.
There is no question that this new investment strategy is going to make some people even wealthier.
Fortunately, that expansion of return will also be accessible to smaller retail investors – like you.
In fact, I have begun to move the first plays into my investment services.
[Click here to learn how to get access to my exclusive Rolodex with all my contacts and profit opportunities within]
In my next Oil & Energy Investor installment, I will consider this world of private initiative, the third aspect of my address in Singapore and the subject of my private sessions over the next ten days.
The post A Behind the Scenes Look at the Singapore Conference appeared first on Oil & Energy Investor.
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