The other week we talked about how everyone hates natural gas, with "everyone" referring to oil and gas independents like Denbury Resources
Of course, not everyone exhibits such an aversion to the cleaner-burning hydrocarbon. Big Oil, for one, seems pretty gas-happy these days.
One of the most obvious domestic moves of this sort is ExxonMobil's
A recent Bloomberg story tied the oil majors' recent tilt toward gas to the issue of access. That's a huge one. While firms like Exxon and BP
This matter of resource access is joined at the hip with the issue of reserve replacement. This is perhaps the majors' and supermajors' biggest challenge today: replacing what is produced, year after year.
Smaller E&Ps have no trouble posting eye-popping reserve replacement ratios each year. Their biggest concern today is low gas prices, which impact independents' operations to a much greater extent than those of the well-financed majors. For the latter group, temporarily depressed gas prices are quite tolerable, especially given the opportunity to top up reserves with gas from North America, Australia, and other friendly jurisdictions. The majors can also more comfortably look to the long-term outlook for natural gas demand, which is stellar.
Chesapeake Energy is a Motley Fool Inside Value recommendation. Statoil ASA is a Motley Fool Income Investor pick. The Fool owns shares of Chesapeake Energy, Denbury Resources, and XTO Energy. Try any of our Foolish newsletters today, free for 30 days.