Natural Gas News – July 9, 2018
Natural Gas News – July 9, 2018
Big Oil’s Next Major Move
Oil Price reported: Several oil majors, including Royal Dutch Shell and BP, are boosting their share of natural gas output. A Bloomberg report said these two oil companies, by increasing gas production, are trimming the lead between them and ExxonMobil, the world’s largest publicly traded oil company. ExxonMobil has a current market cap of $348 bn, while Shell has market cap of $317 bn, and BP at $156 bn. BP expects by 2020 to produce about 60 percent gas and 40 percent oil, a reversal from 2014 when it was the opposite – a pivot that many other oil companies will likely follow. ExxonMobil for its part currently produces about 55 percent oil and 45 percent gas and remains the largest natural gas producer in the US. Shell’s acquisition of UK-based BG Group for $50 bn in 2016 boosted the share of natural gas to 50 percent of its global fossil fuels output and made it the world’s largest natural gas trader. For more on this story visit oilprice.com or click https://bit.ly/2uetG1r
BP Tipped to Buy BHP’s US Shale Oil and Gas Assets
Business Day reported: BP was in the lead to acquire the US onshore shale oil and gas assets of BHP Billiton after submitting an offer worth well in excess of $10bn, people familiar with the matter said on Friday. The move represents a big bet by BP on US oil and gas production at a time when energy prices are rebounding. It would allow the oil major to significantly rebalance its business with oil production, after focusing largely on natural gas assets. BP was the frontrunner in the auction for the assets run by BHP and could reach a deal in coming weeks, the sources said, cautioning that an agreement was not certain and it was possible that negotiations could end unsuccessfully. The exact terms and composition of BP’s offer could not be confirmed. The sources asked not to be identified as the matter was confidential. BP and BHP did not respond to requests for comment. For more on this story visit businesslive.co.za or click https://bit.ly/2J7cP6m
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