Shell reverses course in Canada and buys ARC Resources for $14 billion, doubling down on oil and gas |
Shell reverses course in Canada and buys ARC Resources for $14 billion, doubling down on oil and gas
Nearly a decade after selling its dirtier Canadian oil sands assets amid the global transition to clean energy, Big Oil giant Shell is reversing course in Canada and buying ARC Resources for nearly $14 billion.While Shell followed the energy supermajor trend of exiting Canadian oil sands in the prior decade, Shell’s acquisition of ARC places a new emphasis on the natural gas-heavy Montney region of British Columbia and Alberta, which is relatively cleaner than the thick oil sands and more resembles the U.S. shale plays. Calgary-based ARC touts itself as the leading pure-play producer in the Montney.Shell, BP, and other Big Oil players have focused lately on growing oil and gas production to boost revenues, while placing less-profitable renewable and clean energy strategies on the back burner.
The Montney region is considered an emerging oil and gas play as the biggest U.S. shale basins continue to mature and natural gas demand grows worldwide,........