Big Oil's Big Bet on Natural Gas Has Been a Big Headache - Bloomberg:
The world’s biggest oil companies have been steadily shifting investments toward natural gas, driven by an emerging globally traded market and environmental concerns. But right now they’re taking a hit as prices tank.
Supermajor energy producers -- Exxon Mobil Corp., Royal Dutch Shell Plc, Chevron Corp., Total SA and BP Plc -- saw a steep drop in the prices they received for gas in the past quarter. Alongside a dip in refinery margins, weakness in gas skimmed off second-quarter earnings.
Gas traded at the U.S. benchmark Henry Hub in Louisiana is at the lowest seasonal levels in two decades as production from Appalachia and West Texas breaks records. In Europe and Asia, spot prices for the liquefied form of the fuel have sunk thanks to a wave of new export terminals pumping new cargoes into the market.
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