GE Wins "Green" CO2 Contract From Statoil

General Electric (NYSE: GE  ) is helping Norway's Statoil ASA (NYSE: STO  ) go green -- and make some green in the process.

On Thursday, GE announced that its Oil & Gas division has won a $147 million contract from Statoil to supply subsea production and injection equipment for Statoil's Snøhvit carbon dioxide (CO2) injection project.  With this equipment, CO2 that comes out of a natural gas well and is separated from the gas will be sequestered, then pumped back into the well in order to force even more gas out. In this manner, GE's equipment can be used to both minimize CO2 gases being added to the atmosphere in the process of natural gas extraction (by forcing them back into the hole), and also maximize production from Statoil's gas wells.

GE says it will deliver the equipment to Statoil in Q2 2015.


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  • Report this Comment On June 24, 2013, at 5:10 PM, EllenBrandtPhD wrote:

    I'm commenting here, because this is the latest story on STO.

    And I think I represent pretty much all of us without the Deepest Pockets in saying Basta! Seriously, Basta! on both the Krone (NOK) and STO - which lately are pretty much the same thing.

    Everyone and his/her very slow cousin from Peoria know why these shenanigans are going on now, taking advantage of the overall Market weakness to play STO against its nearest peers and the NOK against its nearest peer, the Euro.

    Erna Solberg has a probably insurmountable lead against the incumbent. Some polls say it is 30 percent! The election is just a few weeks away.

    Solberg will, first of all, abolish the latest taxes levied against STO - the cause proximate of its recent weakness - and then cut its taxes further. Cutting corporate taxes is one of her primary campaign promises - and she actually means it.

    Even more dramatically, Solberg and the CD have vowed to reduce the government's stake in STO from the current 70 percent-plus to 50 percent. And significantly - another key campaign plank - she has vowed to do it at - this is a direct quote - "the highest possible price."

    That means that Norway, which has a great deal of clout in world Oil markets - and nat gas markets - is going to be doing everything in its power to boost STO's market value after the election.

    The NOK/USD and NOK/EUR ratios should improve, anyway, over the next few weeks and the rest of the summer. This is a seasonal pattern, as is the general improvement in Brent over the summer, partly due to hurricane-cyclone season effects, which this year could be quite hefty.

    But most think that immediately upon Solberg's election, the NOK will soar, and STO will soar even more.

    That's why Shorts are covering so fast - and analysts are falling all over themselves to raise ratings, although, of course, you would not know it from the price action.

    And Fool readers will want to notice that STO is now one of fairly few stocks overall with a 5 star rating from the community. No Fools those Fools!

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