By Bill Holland on December 14, 2009 5:26 PM | No Comments | No
TrackBacks
It's not quite "Tear down this wall," but the Russian bear can only play
hardball with natural gas and its neighbors before the free market
brings a response.
While ExxonMobil's announcement that it's buying Fort Worth's XTO Energy
for $31 billion and $10 billion in debt is a rousing cheer for US shale
producers, the real stimulus has been Russia's annual bully-thy-neighbor
approach to winter gas supplies.
Exxon made no bones Monday it was buying XTO for its expertise in
cracking shale gas plays, with plans to export that talent to the nearly
3 million acres of shale leasehold it has in Poland, Hungary, and
Germany. CEO Rex Tillerson almost salivated at the prospect of producing
gas smack in the middle of a gas-hungry market (same dynamics as
Pennsylvania's Marcellus Shale and a little town called New York City).
Making that market roar, however, will be giving Eastern European
consumers a stab at freedom from the nearly annual turn-ons and
shut-offs of natural gas supplies from Russia via Ukraine.
Last month, Gazprom said US shale gas would have no effect on its plans
to import Russian LNG to the states. ExxonMobil is about to find out if
Hungarian-German-Polish gas will have an effect on Gazprom.