BHP was forced to write down over half its $5 billion-plus investment in Chesapeake Energy in August as a result of an oversupply of dry gas hitting the North American market, leading to a plummet in prices.

The write down led to petroleum boss Mike Yeager and chief executive Marius Kloppers electing not to take a bonus this year.

Since then, it has been talking up the liquids potential of its Petrohawk assets as a way to keep the business profitable while it waits for the natural gas market to pick back up.

Chairman Jac Nasser told investors that BHP was still a believer in the shale dream.

“We remain of the view that the investment in US onshore natural gas and liquids is the right decision for BHP Billiton shareholders, and it is why we acquired the Petrohawk gas and liquids business,” he said at BHP’s annual general meeting in London.

“Onshore natural gas and liquids form a critical part of the US government’s commitment to be energy independent.

“While the US still imports 45 per cent of its oil, the energy market in the US is quickly being transformed by innovations in technology and commercialisation of onshore natural gas and liquids.”

This article first appeared in ILN sister publication EnergyNewsPremium.net.