US economic woes to have limited effect on energy:
Anadarko CEO
New York (Platts)--25Mar2008
The current slowdown in the US economy should have a relatively limited
impact on the energy sector, Anadarko Chairman, President and CEO James
Hackett said Tuesday.
Speaking on the sidelines of Anadarko's 2008 investor conference in New
York, Hackett told Platts that even in times of slower economic growth,
energy
demand still trends upward. "Traditionally, [the energy sector] has not been
bulletproof," but the demands of globalization will likely help keep the
economic slowdown "a bit limited," he said.
Natural gas will play a key role in meeting US energy needs in the short-
and medium-term, Hackett said, because gas is a relatively clean-burning
fossil fuel. "We've been challenged on the coal side," he noted, with
several
proposed coal-fired power generators being scrapped, and though a resurgence
in nuclear plants could meet longer-term power needs, such plants are a long
way from being realized. "The challenge is trying to capture those [natural
gas] resources" when so many domestic resources are off-limits, Hackett
said.
Hackett said Anadarko has "a huge competitive advantage" in its US Rocky
Mountains production and its recently opened Independence Hub in the Gulf of
Mexico is operating "on time, and on budget, and is meeting our production
objectives."
In addition, Anadarko is carving out a position in the Marcellus Shale in
Pennsylvania. "We're very excited about the position we have in the
Marcellus," Hackett said, although work there "is very much in the early
stages."
Anadarko also has completed the bulk of its asset divestitures it
embarked on after its acquisitions of Kerr-McGee and Western Gas Resources
in
2006. In fact, Hackett said that the company had not planned to sell its
interest in the Peregrino field offshore Brazil to StatoilHydro earlier this
month, "but we received an offer that was compelling."
While he said the company may look at future asset sales depending on the
circumstances, it is no longer looking to sell assets to pay down debt.
--Melanie Tatum,
melanie_tatum@platts.com
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