Shale Not Paying Off for Shell

This segment is from Tuesday's edition of Digging for Value, where sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy .

In a recent interview in the Financial Times, outgoing Shell  CEO Peter Voser discussed his regret on betting big in unconventional shale plays in the United States. While shale oil and gas is transforming the U.S energy landscape, low natural gas prices and difficult-to-scale oil finds have proved difficult for Shell. However, Shell is not alone, ExxonMobil has also felt the pressure of low domestic natural gas prices, especially after buying XTO Energy for $41 billion, making Exxon the largest natural gas producer in America. While Exxon is in for the long haul and eventually the XTO acquisition will pay off, will the same be true for Shell? 

More Foolish insight
Record oil and natural gas production continues to revolutionize the United States' energy position, but as Shell has shown, finding the right plays while historic amounts of capital expenditures are flooding the industry can be difficult to find.. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 


The article Shale Not Paying Off for Shell originally appeared on

Joel South and Taylor Muckerman have no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story