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.
