Royal Dutch Shell expects US natural gas prices to double by 2015, rebounding strongly from the 10-year lows they have hit as a result of the shale gas boom as US demand for the fuel grows.
In an interview, Peter Voser, Shell chief executive, said prices would remain under pressure in the short term “but we would see a recovery?.?.?.?in the second half of the decade”. For planning purposes, he said, Shell was using a price of $4-$6 per million British thermal units for the 2014-15 timeframe, up from the current level of $2.55.
Mr Voser said gas demand in the US would rise “as coal is replaced by gas in electricity generation, and gas in transportation takes off”. He added that the low price would drive some producers to curtail output, allowing the price to rise.