1. Huge oil discovery in Mexico looks promising.
Last week, UK-based Premier Oil, Talos Energy and also Mexico City-based Sierra Oil & Gas, announced a potentially massive new oil discovery off the Mexican coast. So large in fact, that they said it was a “world class discovery.” Premier stated that their initial results suggest the well has the potential to produce in excess of 1 billion barrels. The well is made up of light oil and some associated natural gas.
The discovery is good news for a struggling Premier Oil; its stock price skyrocketed 30 percent after the announcement. But the discovery is even better news for Mexico, who has been experiencing declining oil production for years. It now appears that Mexico will be a top global destination for oil exploration.
2. Siemens and AES launching a joint venture to focus on battery storage systems.
A new partnership between Siemens and AES could finally prove to be a formidable competitor for Tesla in the energy storage sector. Although there’s enough room for both at the moment, The joint venture, called Fluence, will soon become a major player with Siemens 463 MW of battery-powered storage systems across 13 countries and AES’ decade of experience in energy storage systems. This is an exciting industry to keep your eye on because battery-based storage systems have significant potential to reduce the use of oil and gas in the future – as technology expands and increases.
3. Energy Investments are down year over year.
According to the International Energy Agency’s (IEA) World Energy Investment 2017 report released last Tuesday, energy investments are down by 12 percent from this year compared to last. This drop is worldwide and brings the total investment to US$1.7 trillion in 2016. And even more interesting is the fact that electricity investment is outpacing oil and gas spending for the first time ever.
Although oil and gas have plummeted from 2014-2016, upstream oil and gas investment is expected to rebound this year, according to the same report – led by U.S. Shale investments.