Why you should invest in Suncor Energy Inc. right now
Energy Digital has previously reported on the oil and gas debate, as well as the rising solar power industry. And while both industries offer viable stock options, when it comes to stocks, there are two games to play: the “waiting until an industry rebounds” game or the “capitalize on short-term expectations that are driving down quality stocks” game.
According to a new report by Motley Fool, one of these stocks that investors should be paying attention to is Suncor Energy Inc. The stock is down by 20 percent over the past 12 months (as of September 11, 2015) and insiders believe Suncor has a promising future, generating shareholder value over the next three to five years.
RELATED TOPIC: Are lobbying groups API and ANGA making plans to merge?
Strong financial footing
Suncor Energy’s financial position is rated “A-” by Standard & Poor’s and “A3” by Moody’s, states Motley Fool. In the first half of 2015 it generated nearly USD$800 million in free cash flow. It also has roughly USD$5 billion in cash as well as a USD$6.9 billion credit revolver.
Decreasing production costs
For the first half of 2015 the company’s cash operating cost was USD$28 per barrel, down from USD$35 per barrel in the previous period. In addition to lower operating expenses, volume growth and cost-reduction programs are largely to thank for the condition of the balance sheet.
RELATED TOPIC: Absolute Energy CEO becomes billionaire as stocks soar
A few projects are expected to come online and help drive production growth in Suncor’s near future.
The Fort Hills project will deliver its first oil in Q1 2017, with a potential of 73,000 barrels a day of production, reports Motley Fool. Another similarly sized project, in which Suncor Energy has a 22.7 percent stake, is also likely to come online by the end of 2017.
Suncor Energy Inc. is in a rare position with its falling costs, balance sheet and upcoming projects. While the oil and gas industry is uncertain in the short-term, Suncor Energy is proving to be a viable choice for long-term growth.
[SOURCE: Motley Fool]
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.