Big oil morphing into big gas
Nearly every major oil player has significantly increased their share of production of natural gas relative to petroleum over the past 15 years, except for BP, data from Bloomberg shows. Explaining the rationale behind Royal Dutch Shell’s acquisition of BG, which helped solidify Shell’s control of over 20% of the global LNG market, Shell’s chief executive Ben van Beurden says “We’re more a gas company than an oil company. If you have to place bets, which we have to, I’d rather place them there.” “[Gas is] considered a crucial ‘bridge fuel’ in the transition to a low-carbon future, because gas-fired power plants are far cleaner than those that burn coal,” according to the piece. “They’re also relatively cheap to build and easy to switch on and off, making them a natural complement to solar and wind generation. Shell is also working to create a market for gas-fueled vehicles, especially ships and heavy trucks that, unlike cars, won’t go electric soon.”