Shell CEO: No Major Recovery for Natural Gas in 2013

From CNBC

Shell CEO Peter Voser told CNBC he doesn’t expect a major recovery in natural gas prices in the U.S., after the Nymex-traded futures contract rebounded 24 percent from a year ago to $3.23 per million British thermal units.

“If I look at the macro in terms of gas prices in the U.S., I don’t see big changes in 2013. I think it’ll take a little bit longer until it comes back to a range that we think should be around $3 to $5 or $4 to 6 — where most projects would make sense,” Peter Voser told CNBC Europe’s “Squawk Box.”

Natural gas prices in the U.S. have tumbled from their record high of just over $13 as the shale-gas boom has created a supply glut.

Voser said Shell had switched some rigs over to focus on the more profitable “tight oil”, a process whereby oil companies extract oil from shale rocks rather than gas.

Click here to read more

Add Comment

By posting your comment, you agree to abide by our Posting rules

Text

© 2013 Energy Tribune

Scroll to top