FORT WORTH -- Low natural gas prices are lifting the U.S. economy even as many people are asking questions about environmental impact, producing "a decisive moment" for the nation's energy policies, XTO Energy CEO Jack Williams said Tuesday at an industry conference in Fort Worth.
"Natural gas is revitalizing America's steel industry, reinvigorating its petrochemical industry" and benefiting heavy-equipment makers, Williams said. At the same time, the energy business needs to keep making disclosures about how it operates, to continue monitoring wells after they're completed, and to address new issues such as earthquakes near oil and gas operations, he said.Williams applauded President Barack Obama's support for the "all of the above" solution to meeting U.S. energy needs while asserting that sound energy policies do not pick winners and losers or include "punitive tax policies."Both industry and government, he said, contribute to energy development.Williams made his comments at a Hart Energy symposium that continues today at the Fort Worth Convention Center, down the street from XTO's headquarters.In much of the world, he said, oil and natural gas shale deposits are proving relatively common, as reflected in the meeting's many presentations on international operations.While low prices present a challenge to the continued development of natural gas, Williams said, XTO will continue parent Exxon Mobil's long-term approach."We've been here before," Williams said, referring to periods in the 1980s and in the early 1990s when natural gas dipped below $1 per 1,000 cubic feet. That's roughly half of today's price, which itself is the lowest in a decade.He said XTO has completed 16 acquisitions since Exxon bought it nearly two years ago. When combined with Exxon Mobil's other operations, XTO is the largest natural gas producer, with a presence in most of the nation's shale fields.Natural gas prices appear even lower when compared with crude oil prices, which have averaged more than $100 a barrel in the past year. As a result, more operators are pursuing oil and so-called wet natural gas formations, which are rich in natural gas liquids and command much better prices than "dry" gas.Scott Sheffield, CEO of Irving-based Pioneer Natural Resources, said he expects his company to hire 1,000 more employees this year as it boosts drilling in liquid-rich shale formations in the Permian Basin, South Texas and parts of the Barnett Shale.While Sheffield sees the industry at large making "a major shift to oil from gas," natural gas production isn't expected to fall. He and other speakers noted that as drilling for crude oil increases, new wells typically also produce natural gas, sometimes lots of it, and that means the nation's glut of gas will continue."I do not believe natural gas is coming back strongly anytime soon," Sheffield said, referring to prices, "because there is so much gas coming from these liquids-rich plays."Jim Fuquay, 817-390-7552Twitter: @jimfuquayHave more to add? News tip? Tell us
