"Saudi Arabia’s decade-long search for natural gas is ending with only two companies finding fields, and those drillers need higher prices to move forward.
Royal Dutch Shell Plc (RDSA) (RDSA) and OAO Lukoil (LKOH) are nearing the end of well tests in the Empty Quarter desert. The future of any output hinges on talks with the government, which pays an official gas price of 75 cents per million British thermal units. In the U.S. gas costs about $3.70 per million Btu, while Japan pays at least $12 for imports. China and India are increasing state-set rates.
“The Saudis need to raise prices to encourage new developments,” Kamel al-Harami, an independent oil analyst based in Kuwait, said by telephone. “But they need at first to find enough non-associated gas,” or fields where the fuel exists separately from oil."
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