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Energy

Sumitomo completes exit from shale oil with sale of US assets

Biden administration and competition push trading houses out of once-promising field

An oil worker walks toward a drill rig in Loving County, Texas.   © Reuters

TOKYO -- Japanese trading house Sumitomo Corp. has offloaded the last of its interests in shale development with the sale of oil operations in Texas, as the arrival of a more climate-conscious White House clouds the outlook for fossil fuels.

The group sold its oil production assets in the Eagle Ford Shale formation to an American oil company in a deal thought to be worth tens of millions of dollars. This follows the sale in September of Sumitomo's roughly 30% stake in a shale gas project in Pennsylvania's Marcellus Shale.

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