U.S. Shale Gas Overrated, Consultant Says; ExxonMobil's Purchase of XTO Not a Signal That U.S. Shale Gas Is a Good Investment per se

摘要

Speaking to investors at the recent Canadian Energy Conference in New York, March 10-12, which was sponsored by FirstEnergy and Societe Generate, consultant Arthur Berman1 warned that the natural gas industry is overestimating the amount of gas that can be produced successfully from developing U.S. shale plays. Berman is a vocal critic of the industry, although he confessed to the audience that shale gas "is here to stay." The costs to get shale gas out of the ground are routinely understated, according to Berman. The consultant does not interpret Exxon Mobil Corp.'s recent acquisition of XTO Energy (FNGR No. 2776, pp15-17) as a validation of U.S. shale plays either. He suggested ExxonMobil's deal was driven primarily by its need for "large annual reserve additions to support [its] stock price."