The CEO of Shell (NYSE: RDS.A), Peter Voser, recently stated in an interview with CNBC that he does not foresee any drastic improvement in natural gas prices over 2013.
“If I look at the macro in terms of gas prices in the U.S., I don’t see big changes in 2013. I think it’ll take a little bit longer until it comes back to a range that we think should be around $3 to $5 or $4 to 6 — where most projects would make sense,” Peter Voser told CNBC Europe’s “Squawk Box.”
Due to the constantly expanding supply thanks to the shale boom, natural gas prices have fallen a long way from their record highs (a little over $13).
Shell, meanwhile, has shifted focus to look into so-called “tight oil,” wherein oil, rather than gas, is harvested from shale rocks. This is, according to Voser, much more profitable.
Shell reported Q4 profits of $5.582 billion but missed estimates, and the company saw its shares fall on Thursday to close at $70.50.
However, Voser waved away any major concerns, stating that Shell is well on its way to return a 30-50 percent cashflow growth.