Energy giant Exxon Mobil will substantially increase its natural gas holdings by acquiring XTO Energy for $41 billion. The all-stock deal, which includes assuming $10 billion in XTO debt, was announced Monday morning. XTO has been a leading player in the development of unconventional natural gas resources, such as shale gas, which have led to a whopping increase in the estimated natural gas reserves of the U.S.
Recent studies indicate that the nation’s estimated natural gas reserves have increased by 35 percent, thanks in large part to this new technology. Estimated natural gas reserves rose to 2,074 trillion cubic feet in 2008, from 1,532 trillion cubic feet in 2006. This includes the proven reserves compiled by the Energy Department of 237 trillion cubic feet, as well as the sum of the nation’s probable, possible and speculative reserves.
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