Shale-Gas Luring new Investments, Shell’s Drillship Reattached in Alaska: Energy Business Update
The revitalization of shale-gas in the United States is luring a series of investment that could cause steel industry profits to rebound. The most valuable American steelmaker, Nucor Corporation (NYSE:NUE), intends to initiate a $750 million project in Lousisana in mid-2013. Michelle Applebaum, managing partner at the consulting firm Steel Market Intelligence, said “That technology has been around 30 years, but for 29 years gas prices in the U.S. were so high that the technology was not economical. This is how steel will be built moving forward.”
General Electric Company’s (NYSE:GE) GE Energy Financial Services is one of three companies in a group that is purchasing Iberdrola’s (IBDRY.PK) portfolio of French wind farms. Other firms involved are the renewables division of France’s EDF, and the asset manager of the reinsurer Münchener Rückversicherungs-Gesellschaft (Munich Re). The acquisition is valued at €350 million, plus an additional €50 million, according to The Financial Times.
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A Royal Dutch Shell (NYSE:RDSA) drill ship in the Gulf of Alaska broke free from two towing vessels Sunday in strong wind and waves. On Monday, the vessels are once again attached, but the responders are unsure as to where to move it. The drillship, the Kulluk, which has a bowl-shaped hull and no propulsion system, was employed to drill in the Beaufort Sea earlier this year.
Shares of Quicksilver Resources (NYSE:KWK) shares rebounded on Monday, closing up more than 5 percent on the day, after slumping almost 8 percent Friday, for a 19 percent decline on the week, as investors were said to be impatient with the firm’s lack of a deal for its Barnett or Horn River Basin assets.
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