Exxon (XOM) bought shale gas player XTO today for a $41 billion in stock (LINK). According the the news release:
"XTO’s resource base is the equivalent of 45 trillion cubic feet of gas and includes shale gas, tight gas, coal bed methane and shale oil."That's about $0.91/MMBTU of XTO gas resources. Compare that to Alaska's gas estimated at 169 trillion cubic feet. Figure half of that is on Exxon leases. Figure $30 billion for a pipeline, $15 billion for Exxon's share - that works out to less $/MMBTU for gas resources in Alaska.
Apparently the cost of bringing XTO resources to market is more attractive to Exxon than Alaska gas....today. But stay tuned.
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1 comment:
Well maybe sees the L48 shale gas as more certain, at least in the short term. There are huge issues with the State of Alaska which seem to be going no where.
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