You don’t become one of the world’s largest and most profitable companies by making dumb moves. Exxon Mobil (NYSE:XOM) proves it once again.
XTO shareholders are partying thanks to news that Exxon is printing some $31 billion worth of new shares in order to purchase XTO Energy (NYSE:XTO), one of the nation’s natural gas producing giants. It’s a major deal that has hearts skipping across a variety of sectors.
But now that demand is rising and gas prices are following suit, Exxon officials saw it was time to make their move. With XTO prices reaching short-term lows, Exxon made its move.
Here back home Reliance holds the key to biggest Gas fields in KG Basin. While overall the game is under regulations of govt of India, reliance is making big investments to keep the gas coming. Future looks bright since gas remains a preferable fuel compared to coal. It's cleaner and more pressure on controlling gas emission in Copenhagen can give boost to natural gas producers.
The demand is never a problem, it's supply side where infrastructure was a constraint.
The Key gas players GAIL , ONGC and RIL should definitely benefits from shift from coal fired to gas fired power.