RIL had acquired two shale gas assets in the US in the last couple of months, and this should not have surprised anyone.
There is currently a shale gas mania, with analysts predicting that shale gas based natural gas could become the leading energy component in the US and perhaps in countries like India too, in a decade from now.
Reliance obviously is not the first to make major acquisitions in this area.
Dec 2009 – ExxonMobil bought shale gas assets of XTO Energy for $30 billion
Jan 2010 – French oil company Total SA shale assets from Chesapeake Energy for $2.6 billion
Apr 2010 – Reliance bought 40% stake in Atlas Energy’s shale gas field for $1.7 billion
May 2010 – Royal Dutch Shell bought a majority stake in East Resources for $4.7 billion
June 2010 – Reliance buys a stake in Pioneer Natural Resources for $1.35 billion
The shale gas acquisitions is likely to continue for a while…expect ONGC to get into the play soon too (just my guess, don’t read between words!)