Royal Dutch Shell's (RDS-A) CEO Sees Natural Gas Demand Trumping Oil
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Royal Dutch Shell's (NYSE: RDS-A) chief executive officer Peter Voser believes, over the long term, Asia will drive demand for natural gas higher than demand for oil.
Putting his money where his mouth is, Mr. Voser said, “The market has actually started to dry out. We need new projects to come on stream and a few are coming on in the next few years. But that's not efficient, we need to invest further."
Currently Shell is producing a 52 to 48 percent ratio of natural gas to oil and expects Asia to consume a large portion of that. Mr. Voser told CNBC, "I think you cannot travel around Asia at the moment without getting the question, 'can you sell us some LNG?'"
Natural gas prices declined to a near ten-year low last week, causing several natural gas producing companies to lower their production levels. Mr. Voser claims current natural gas demand and pricing does not reflect the global demand for the commodity.
"If you're talking about North American gas, clearly the current price levels are not sufficient to actually bring all the developments forward. You have seen a lot of companies starting to cut their production," said Mr. Voser.
Putting his money where his mouth is, Mr. Voser said, “The market has actually started to dry out. We need new projects to come on stream and a few are coming on in the next few years. But that's not efficient, we need to invest further."
Currently Shell is producing a 52 to 48 percent ratio of natural gas to oil and expects Asia to consume a large portion of that. Mr. Voser told CNBC, "I think you cannot travel around Asia at the moment without getting the question, 'can you sell us some LNG?'"
Natural gas prices declined to a near ten-year low last week, causing several natural gas producing companies to lower their production levels. Mr. Voser claims current natural gas demand and pricing does not reflect the global demand for the commodity.
"If you're talking about North American gas, clearly the current price levels are not sufficient to actually bring all the developments forward. You have seen a lot of companies starting to cut their production," said Mr. Voser.
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