Trading firm Sumitomo Corp. sees opportunities in U.S. shale oil and natural gas despite exiting production there three years ago.
The company will seek 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 tap its strength in related businesses rather than return directly to output.
Sumitomo’s exit from U.S. shale production contrasts with major energy companies including ConocoPhillips and Exxon Mobil, which are making multibillion-dollar acquisitions in a bet that oil and gas demand will remain robust even as the world transitions away from fossil fuels. Japanese firms have joined the trend, with Mitsui & Co. last month buying a shale gas asset and Tokyo Gas last year purchasing Rockcliff Energy for $2.7 billion.