
Low natural gas prices push producers to oil

North American producers are capitalising on relatively high oil prices by increasing investments in liquids rather than natural gas plays, where the low price outlook affords scant opportunity for successful hedging.
“Nearly all of the North American producers have made a call toward moving more of their capital spend toward oil for 2011 and beyond,” says Jen Snyder, principal, North American gas at Wood Mackenzie. “Oil prices are stronger than gas prices right now and the returns are superior
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