In the past year, a growing number of foreign energy companies have bought into the US natural gas scene through joint venture deals with independents to gain access to what is turning out to be a huge new fuel source.
Analysts estimate that the independents have grown US supplies, using new technology and expertise, to 100 years worth of natural gas, up from about estimates of about 30, just three years ago. Yet it is interesting to note the US majors have been left out of this joint-venture activity, continuing to focus on the deep-water Gulf of Mexico and, mostly, overseas.
ConocoPhillips’ revelation in recent days that it is moving to take over the 50 per cent stake held by Petroleos de Venezuela, Venezuela’s state oil company, in a joint venture processing crude at a Texas refinery because PDVSA has defaulted on supply contracts underlines the value of the US gas play. Had PDVSA been American, this dispute would have been settled a long time ago. And the chances of the US nationalising assets is slim to none.
