Royal Dutch Shell spends $50 billion on BG making a long term bet on LNG. Shell becomes biggest LNG player in the world with acquired assets in Australia & East Africa.Natural gas demand will continue to rise in APAC region as China moves to deploy Hydrogen Fuel Cell busses, Trains, and Heavy Trucks. Remember, Hydrogen for fuel cells comes primarily from natural gas which comes from LNG. Hydrogen can be made from anything but for next 40 to 50 years, that demand for Hydrogen will be met with subsurface natural gas. Oil majors like Shell are smart to diversify from oil to natural gas.Even as oil rebounds, natural gas is the long term play. Our American competition will shift from Middle East to Russia. Australia will be big player but they are our ally.http://oilprice.com/Energy/Energy-General/Oil-Major-Shell-Plans-To-Shrink-As-Oil-Rebounds.html
Very good point Wax. Maybe this is why Democrats & our media are trying so hard to portray Russia as our enemy. Hopefully incoming administration can work toward improving relations with Russia. World will be a safer/better place if we can improve relations with Russia.Russia has impressively cut costs & diversified economy recently to brace against drop in oil prices over past couple years. Recent increase in oil prices should really help strengthen Russian economy in next few years and embolden Putin on world stage. The Central Bank of Russia (CBR) cut key interest rate by 100 basis points to 11.5% this past June to stimulate economy. With oil approaching $60/bbl, it should be a strong year for the Kremlin.