A BHP executive said that the company has put US shale gas production hikes on hold but a rise in nat gas prices would spark a round of investment.
Speaking at a conference in New York on Tuesday night, BHP petroleum chief Michael Yeager said if US gas prices, which have risen from about $US2 per million British thermal units in April to $US2.85, rose another 65c, the company would consider ramping up production that is now on hold.
“Right now, $US3.50 would allow us to start mobilising,” Mr Yeager said.
The US holds tremendous natural gas reserves but they are costly to extract. I see the US moving toward using more nat gas in industry and transportation which will boost prices, attract investment and lower energy imports.
The spot to watch is politics. A move to more nat gas would require some political will but it’s a good initiative to take on at the start of a mandate.
