June 27, 2012 / 1:00 PM / 7 years ago

Exxon CEO says low US natgas prices not sustainable

June 27 (Reuters) - Current prices for U.S. natural gas are not sustainable for the energy industry to continue to cover the cost of finding and producing new supplies, the head of Exxon Mobil said Wednesday.

“The cost of supply is not $2.50. We are all losing our shirts today,” Rex Tillerson, chief executive officer of Exxon Mobil, said in a presentation at the Council of Foreign Relations.

Exxon Mobil is the largest producer of natural gas in the United States following its purchase of XTO Energy in 2010.

U.S. natural gas prices slumped to their lowest levels in a decade earlier this year below $2.00 per million British thermal units, but have rebounded to near $2.80 in recent days.

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