Investment


Judging from a DOE analysis of smart grid projects, spending on Smart Grid Investment Grants and Smart Grid Demonstration Programs is more than paying off. As of March 2012, the $2.9 billion spent on projects has yielded a total economic output of $6.8 billion.

Also, the analysis indicated that high tech, industrial and service businesses usually involved in smart grid projects record higher than average labor income and boost job numbers in the economy through “indirect and induced mechanisms.” Keep reading →


US natural gas prices have begun to strengthen as oil prices have begun to drop, but both remain far from levels that would prompt exploration and production companies to shift capital back to gas from liquids.

For the past few years, with Henry Hub natural gas trading mostly in the $2.00-$4.00 per million Btu range, higher-priced and higher-margin oil and liquids have been the target of choice for US onshore drillers. But as natural gas prices have recently edged above $4.00/MMBtu and West Texas Intermediate oil prices have dipped below $90 per barrel, some analysts are questioning at what price levels gas drilling might look appealing, and oil or liquids drilling less so. Keep reading →


Upstream master limited partnership (MLP) Linn Energy’s strategy to attract a broader array of investors is likely to inspire other companies in the space to follow suit, but competitors will take at least a few years to emerge, according to chief financial officer Kolja Rockov.

Linn established LinnCo, a vehicle that exists solely to hold units of the Linn MLP, as a means of raising additional equity capital. Linn then launched an initial public offering of LinnCo shares – in part to be used to raise funds for acquisitions – in October 2012. Keep reading →


North Sea Brent crude oil futures were lower for a fifth day on Tuesday, trading at a nine-month low below $100 a barrel.

U.S. benchmark crude, down for a fourth day, was at its lowest level so far in 2013, as the market remained under pressure from signs of weak oil demand growth. Keep reading →


Quick Take:You’ll pull several insights from the new research report described and linked below. Note that they predict:

The sector will grow 9% per year
Asia will lead the way
Smart grid will be one of the key sectors along with transportation Keep reading →


If any sector would seem unlikely to be singled out for its robust dealmaking outlook, renewable energy might seem to be it. After a surge in investment and in installations over the past decade, renewable energy seemed to run out of road in 2012, undermined by extreme competition, low natural gas prices and limits on government assistance in a budget-constrained environment.

But 2012 proved to be a surprise for analysts of the renewable energy sector, analyst from consulting and accountancy firm Deloitte said in their most recent overview of the sector’s merger and acquisition activity. Keep reading →


While there are some nagging questions, Texas is spending $6.8 billion on new transmission lines to deliver electricity from wind farms in West Texas to its major metro areas such as Austin, Dallas, Houston and San Antonio.

And while it’s certainly a plus for the state, its economy and jobs, that transmission investment also is attracting developers who plan to spend $3.3 billion on new wind farms that will generate 1,633 MW of new capacity in the next two years, according to a story in Sustainable Business. Keep reading →


The nation got a wakeup call recently when the American Society of Civil Engineers (ASCE) released its Report Card for America’s infrastructure. Listed among the failing grades for roads, bridges and ports, was a grim evaluation of our energy infrastructure.

Giving it a grade of D+, the Report Card detailed the need for investment throughout the nation’s electricity system, but focused primarily on the aging electric grid. The nation’s power grid, which consists of a system of interconnected power plants, transmission and distribution facilities, some of which date back to the 1880s, is in dire need of repair. Keep reading →


The excitement over solar power, which once attracted billions in private investment and public subsidies, has waned recently, underscoring the limitations of renewable energies and the unchallenged dominance of fossil fuels.

Some of the $75 billion sector’s high profile names have fallen on hard times recently – most notably Suntech Power. The China-based solar panel company rattled the industry when it filed for bankruptcy last week. In its heyday, the stock traded just shy of $90 and had a market capitalization of $16 billion: on Thursday, the last day U.S. markets were open, the shares traded around for 42 cents each. Keep reading →


The Korea Smart Grid Association is launching a national program to encourage and support the creation of smart grid patents that meet international standards. Energy Korea reported that the organization is supporting companies, universities and research institutions that want international patents. The association is taking the lead in developing technologies and standards that can be baked into future patents.

The association also has a special emphasis on strengthening the global competitiveness of innovative small and mid-sized businesses, which would not normally have the sophistication necessary to deal with international patent issues. It is also emphasizing technologies that can become de facto standards or “platforms” that “can enjoy both market power and monopolistic strength.” Keep reading →

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