With energy companies like Halliburton HAL talking up growth in U.S. shale regions that offer rich returns in oil and natural gas liquids such as propane and ethane, it’s no wonder that Royal Dutch Shell is bailing out of a Canadian pipeline project to bring down natural gas from the Arctic.
In a signal of where the real action is, Halliburton CEO David Lesar touted rich prospects for the oil-services firm not in the icy north, but in the U.S., as energy companies widen their use of lateral drilling and hydraulic fracturing to tap into oil and natural gas liquids.
“Any of the liquid plays, be it the Bakken (of North Dakota), the Eagle Ford (of southern Texas), the Marcellus (of Pennsylvania) — they are all continuing to be undersupplied and in some cases, undersupplied dramatically from a fracturing market,” Lesar told Wall Street analysts after Halliburton turned in stronger-than-expected second-quarter results on Monday.
Lesar said some energy companies are pulling back from regions offering only pure natural gas, or dry gas, which remains stuck under $5 per million British thermal units. Lesar said Halliburton remains active in these areas as well, however.
“We have found, I think, a business model that would allow to us stay there with our customers and make the kind of returns that they want and the kind of returns we want, but I think that if you think about the dry gas basins, I would say they’re probably at equilibrium and the…liquids basins are all continued to be underserved,” he said.
Source: Market Watch
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