Does GE’s Newest Deal Signal a Focus on Going Green?
On Thursday, General Electric (NYSE:GE) announced that it has won a $147 million contract from Statoil ASA, based in Norway, to supply subsea production and injection equipment to Statoil’s Snøhvit carbon dioxide injection project. GE will supply the equipment through its Oil and Gas division.
GE will provide subsea systems enabling both injection and production wells for the Statoil’s initial production activities in the Snøhvit field. Carbon dioxide is separated from the gas onshore and then pumped back into the reservoir through a pipeline in order to force additional gas out.
The system will minimize the amount of carbon dioxide gasses added to the atmosphere via natural gas extraction while maximizing the yield from Statoil’s wells.
The shipments of GE’s equipment will begin in the second quarter of 2014. Rod Christie, CEO of Subsea Systems, GE Oil & Gas, said, “We are excited to collaborate with Statoil on this initiative to extend production activities at the Snøhvit field.” He continued, “We are committed to helping our customers meet their most difficult technical and logistical challenges in developing new and more mature gas fields, ensuring a more sustainable and environmentally friendly development.”
GE’s newest move is representative of its increased attempts to go green and change its image. About a month ago, GE announced it would open up a new laboratory in Oklahoma in order to study the impacts of fracking and how it could dampen the affects of the drilling methods for communities.
While the subject of fracking is still a highly controversial subject, many people have praised the move seeing as it appears likely that fracking is here to stay — the idea being that if the drilling method is inevitable, we might as well find ways to make it as safe as possible.
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