Gulf Disruptions Open Door to US Energy Exports

Disruptions to Gulf energy supplies are creating opportunities for US oil and gas producers as customers seek alternative cargoes. QatarEnergy told Italian customer Edison that force majeure on liquefied natural gas deliveries would continue until early November, cancelling five additional cargoes and bringing the total to 29, equivalent to about 3.8 billion cubic meters of gas.

The company's contract with Qatar has operated since 2009 and normally supplies roughly a tenth of Italy's annual consumption. Edison has continued serving customers by finding replacement cargoes, including from the United States.

Qatar's LNG exports have been significantly affected by six months of war, while Kuwait, Saudi Arabia, and the United Arab Emirates also experienced substantial declines in oil exports.

The longstanding US-Gulf arrangement, under which Washington protected the region and sea lanes while Gulf producers supplied energy and settled sales in dollars, is being replaced with a new period of competition. US energy companies are gaining customers and commercially supportive prices when insecurity limits Gulf deliveries.