Trading company Sumitomo Corp. sees opportunities in U.S. shale oil and natural gas, despite shutting down production there three years ago.
The company will try to boost sales of pipelines used in U.S. shale fields, Shingo Ueno, who became president in April, said in an interview. “Shale is perhaps one of the most important natural resources for the U.S.,” the 64-year-old said, adding that Sumitomo will leverage its strength in related businesses rather than return to production immediately.
Sumitomo’s exit from U.S. shale production stands in stark contrast to major energy companies, including ConocoPhillips and Exxon Mobil, which are making billion-dollar acquisitions in the hope that demand for oil and gas will remain robust even as the world turns away from fossil fuels. Japanese companies have joined this trend: Mitsui & Co. bought a shale gas asset last month and Tokyo Gas bought Rockcliff Energy for $2.7 billion last year.
