Shell

Top 3 stories

1) Shell is buying BG Group for £47bn

Early this morning, Shell was in ‘advanced talks’ to acquire BG Group – and now it looks like all that talking has paid off.

According to the BBC, the FT and soon enough everybody else, Royal Dutch Shell and BG Group have agreed a £47bn megamerger, the first real one since the crash of ’08.

Based on the size of the deal, which by far outstrips BG Group previous valuation, Shell’s shares have dropped by 2.5% this whilst BG Group’s have skyrocketed 37%.

Quartz, who have done a cursory analysis of the deal, said this could just be the start, that the new oil order was bound to turn up a few giant supersized mergers.

2) China: Pollution fight turns clean energy boom

Among the 6 things Bloomberg has learned from China’s new pollution policies is the rise of solar energy and the move towards electric vehicles.

Seeking Alpha said that, along with India’s new solar power push, China is giving the PV sector an unprecedented boost.

Using new targets as the benchmark, it says the world’s two most populous countries will have installed solar PV in the next 5-7 years than the world has up to this point.

At the behest of Washington advisers, China and the US are considering collaborating on a ‘super-battery’ that would unlock the potential of the clean energy sector, according to the Chinese press.

Meanwhile, the oil price crisis has made it so Gazprom can’t afford a second pipeline to China so a follow-up to last year’s $400bn dollar energy deal has been put on ice,reports Bloomberg.

3)  US: White House says climate change is a health hazard

The Obama administration has stressed the immediate public health impacts of climate change, from asthma to extreme heat, reports TIME.

And as the White House kicked off its climate change awareness week, a Kentucky Senator called Rand Paul announced his candidacy for the Republican Presidential nomination.

The New Republic has looked at Paul’s muddled stance on climate issues.

Meanwhile, in New York, it turns out that a provision in the new state budget will allow $41 million to be taken from its climate change mitigation programme and repurposed, reports Think Progress.

In other news

Iran: The EIA thinks an Iran nuclear deal will cut oil prices by $15 a barrel.

Mexico: State-run oil company Petroleos Mexicanos has announced a $1 billion energy infrastructure deal with US-based First Reserve.

Nuclear: As French nuclear company Areva has spotted further flaws in its troubled reactor in Flamanville, Japan’s ruling party is advocating for a return to nuclear.

Aviation: Boeing is experimenting with a tobacco-based jet fuel.

*Long Read* The Guardian asks: Can the world economy survive without fossil fuels?