Perhaps soon, Big Oil will be more like Big Gas.

Fox News reports that, “the major oil companies are increasingly betting their futures on natural gas with older oil fields producing less crude and newer ones either hard to reach or controlled by unfriendly nations.”

They are paying more attention than ever to natural gas since it burns cleaner than oil and gaining traction as an alternative fuel for transportation. The most recent move came Tuesday when Chevron made a $4.3 billion deal to purchase natural gas fields in the Northeast.

Exxon Mobil bought XTO Energy to become America’s biggest producer of natural gas, earlier this year. Also, Royal Dutch anticipates natural gas to make up half its total global production in just two years.

Fadel Gheit, an Oppenheimer & Co. analyst, said, “if you look at most of the big developments now, they’re not about oil, it’s gas.”

According to Fox, “the world will continue to run on crude oil for years to come, but even with new discoveries, oil production is expected to flatten out during the next few decades, according to the latest estimates from the International Energy Association.”

Much further down the road, Gheit believes that Exxon and Shell will lead the energy industry into a new era where oil corporations dedicate most of their efforts to producing natural gas. The Energy Information Administration anticipates worldwide natural gas production to rise 46 percent from 2007 to 2035, in comparison with a 30 percent rise in world production of crude and natural gas liquids.

To read the entire article from Fox News, link here:

This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Comments (0)

Comment	smaller | bigger
Name
Write the displayed characters
Subscribe via email (Registered users only) I have read and agree to the Terms of Usage.
	Add Comment