Shell's (RDS.A -3%) long shift toward more natural gas production - now half its output - may be...

|By:, SA News Editor

Shell's (RDS.A -3%) long shift toward more natural gas production - now half its output - may be a sensible strategy given long-term expectations for rising global gas demand, but it's not without pain. Return on capital employed has averaged 10.6% since 2009 vs. 20.5% during 2005-08, and $65B of assets on Shell's balance sheet are either still under development or idled because current returns are unattractive.