Exxon Mobil Corp's (XOM.N) $30 billion takeover of XTO Energy Inc (XTO.N) is a major vote of confidence in natural gas and the latest sign that the world's top oil companies are looking to invest more in the cleaner-burning fuel.
Gas prices across the world have slumped in 2009, largely due to a surge in U.S. output from unconventional gas companies like XTO. But global demand for natural gas is expected to surge back more than 50 percent by 2030, making it the fastest-growing major energy source of the next few decades and promising fat profits for reserve holders.
In anticipation of a demand surge, the oil majors have started opening their wallets for expensive gas projects like gas liquefaction plants and pricey gas shale wells.
"This is about the next 10 to 20 to 30 years of what we believe has now emerged as a very important part of the global resource portfolio," Exxon Mobil CEO Rex Tillerson said on a conference call with investors on Monday.
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