US ExxonMobil shifts focus to liquids-rich natural gas plays

31 January 2012 20:21  [Source: ICIS news]

HOUSTON (ICIS)--ExxonMobil will focus more on liquids-rich natural gas plays over dry gas formations for 2012, the US-based energy producer said on Tuesday.

The change has been driven in most part by weak natural gas prices, ExxonMobil vice president of investor relations David Rosenthal said to investors during an earnings conference call.

At midday, natural gas prices for March were at $2.519/MMbtu, down 19.4 cents from Monday’s closing price.

Rosenthal said prices have dropped in recent months because of record production and storage in 2012.

Regardless, the company will not curtail production, Rosenthal said.

He said the company plans to keep 65-70 rigs producing in the US.

“What has changed over the year is we have reallocated a large number of those rigs to liquids and liquids-rich plays,” he said.

“We are still drilling dry gas wells. We do have a few of those that are required for lease maintenance or meeting other contractual obligations.”

By: Bobbie Clark
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