LOOKING FOR ALTERNATIVE ENERGY. Shell agreed to buy a 43.86 percent stake in Silicon Ranch Corporation..By Todd Horwitz, Bubba Trading

 

Todd’s Daily Video Commentary can be found here: https://tinyurl.com/yb2gf9uk

~~~~~~~~~~~~~~~~~~

LOOKING FOR ALTERNATIVE ENERGY

Stepping out of Their Shell

Royal Dutch Shell PLC is giving up on its last oil fields in Iraq, leaving the world’s second-biggest oil company with a dwindling footprint in the Middle East—a region it helped build into a petroleum powerhouse. Shell said Monday it is selling for an undisclosed amount a stake in the West Qurna 1 oil field in Iraq to Japan’s Itochu Corp., the latest step in a gradual retreat from the region. The company is also expected to give up its holding in Iraq’s Majnoon oil field later this year, though it will retain its natural-gas interests in the country.

Shell’s departure from Iraqi oil assets marks one of the final chapters in a slow pullback from the Middle East’s vast fields of petroleum. Shell pumped as much as 450,000 barrels of oil in 2003 in the Middle East, and over the past 15 years had operations that produced thousands of barrels of oil daily across six countries in the region. Once it officially leaves Iraq later this year, Shell will have oil assets in Oman that produce about 220,000 barrels a day.

They’re now getting back into solar. Shell agreed to buy a 43.86 percent stake in Silicon Ranch Corporation from funds linked to Partners Group for up to $217 million. It follows on the heels of British rival BP, which last month also re-entered the solar sector with the $200 million investment in Lightsource. Nashville, Tennessee-based Silicon Ranch develops, owns and operates solar plants across the United States with a capacity of 880 megawatts. Shell also has an option to increase its ownership after 2021.

“With this entry into the fast-growing solar sector, Shell is able to leverage its expertise as one of the top three wholesale power sellers in the U.S., while expanding its global New Energies footprint,” Marc van Gerven, Shell vice president of solar, said in a statement. In November, Shell doubled its planned investment in its new energies division, which focuses on renewables and low carbon technologies, to $1 billion-$2 billion until 2020.

The investment in renewables far exceeds those of other major oil companies but still represents a fraction of Shell’s overall capital expenditure of around $25 billion. Oil companies have come under growing pressure from investors to adapt to the transition to lower carbon energy as governments seek to reduce greenhouse gas emissions by the end of the century.

Keep those stops tight
Todd “Bubba” Horwitz

IN ASSOCIATION WITH

Financial & Political Commentary

 

Tags

, , , , , , , , , ,

Related Posts

About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.