Monday, April 2, 2012

Shifting to more Natural Gas from Oil?

Encana looks for partners Moves comes as natural gas price hits new 10-year low
from CBC article.
oil/gas companies are shifting from more oil focused into gas focused as:
1. "...the price of natural gas dipped to a new 10-year low..."
2. "The low price for dry gas has led companies to concentrate on producing more of what are called gas liquids, such as butane or pentane, which are used as fuels or solvents and which are more profitable."
3.  believe to have a long term potential in future
4. continuing rise of gas price due to political issues between middle east and rest of the world

A representative from Shell in a Money Trade Conference told me that they are shifting into more natural gas focused this year as well. Also, they are setting a higher expectation this year as their new CEO is their former CFO.

Thanks
Lawrence


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