Strategic and commercial logic behind Saudi Aramco’s ‘dash for gas’
When oil was 3 digits it was interesting to buy LNG in order to use it for Enhanced Oil recovery – meaning that the gas from LNG would be compressed into oil reservoirs in order to produce more of the oil in the reserve. The price of oil made this worthwhile and if one looks are the sheer number and size of Saudi Arabia’s aging fields, one understands that they need a horrible lot of gas in order to keep the taps flowing.
Saudi Aramco has dropped so many hints over the past year about a big investment in the US shale gas business that it should have come as no surprise when the company’s link-up with Sempra Energy was formally unveiled this week.
