Statoil, GE Team Up to Develop Eco-Friendly Energy Solutions - Analyst Blog
Norwegian oil giant Statoil ASA’s (STO) stock price rose by 0.8% on the announcement that it has formed a new collaboration with GE to speed up the development of more environmentally and economically viable energy solutions to aid the future growth.
This joint technology-focused program is targeted at deriving an industrial response to some of the biggest problems faced in global oil and gas production which include flaring, CO2 and methane emissions, and water usage. The collaboration is expected to enhance business operations at the same time.
A continuous investment in technology and innovation is vital to meet the rising energy demands of the world. The innovation assists in developing long-term, low-cost and more competent energy solutions.
The partnership brings together the expertise of two experienced technology players and allows them to leverage their global network of engineers and technologists. The collaboration is anticipated to make a deep impact on the development of energy solutions that reduce environmental effects.
In its initial stage, the alliance aims to build on a base of concrete projects which have already commenced and address key sustainability dimensions of the industry. These include reducing flaring and lowering CO2 intensity through innovative application of CNG in a Box as part of the innovative Last Mile Fueling solution.
The alliance will also lower water usage through CO2 stimulation. Furthermore, the collaboration intends to increase fuel efficiency through gas compressor optimisation as well as escalate fuel efficiency with Turbine Online Water Wash technology.
In the later phases, the collaboration will work on a range of solutions, from the fast scale-up of technologies that help answer the operational needs of the industry today to long-term solutions that can support the industry as it develops to meet future energy needs.
Statoil carries a Zacks Ranks #5 (Strong Sell). Better-ranked players from the energy sector include Cheniere Energy Partners LP (CQP), Transocean Partners LLC (RIGP) and Canadian Solar Inc. (CSIQ). All these stocks sport a Zacks Rank #1 (Strong Buy).
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STATOIL ASA-ADR (STO): Free Stock Analysis Report
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