The main rationale of BP plc’s decision to move its U.S. Lower 48 headquarters from Houston to Denver is to be closer to two-thirds of its operated oil and natural gas production and proved reserves in the Rocky Mountain region.
Could BP’s decision signal a revival for the Rockies exploration and production (E&P) investment and activity, particularly for natural gas? After a surge of activity from 2005 to 2008, Rockies investment and production started to decline, partly due to competition from Marcellus shale gas production. The long-term bullish outlook for U.S. natural gas at home and abroad could lift gas prices and natural gas E&P in the United States, including the Rockies.
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