ResNet Review is the Energy Newsletter for the Shalennial Generation

Here’s our top Energy Headlines for April:

1. OVINTIV IS EXPECTING TRIPLETS 👶👶👶

2. CHINA & MIDDLE EAST ARE ENERGY’S NEW “IT” COUPLE 👫

3. GERMANY, TOO, LIKES TO LIVE DANGEROUSLY 😆

Ovintiv is Expecting Triplets

• Ovintiv announced it has entered into a definitive purchase agreement to acquire Black Swan Oil & Gas, PetroLegacy Energy and Piedra Resources ("NMB sellers"), which are portfolio companies of funds managed by EnCap Investments L.P. ("EnCap").,

  • Nothing says bull-market like buying 3 companies at once. Ovintiv is going full Oprah Winfrey in the Permian.

• A flurry of oil deals kicked off a strong start to 2023, but upstream dealmaking has slowed to a crawl in recent weeks due to low commodity prices and a banking liquidity crisis. This coming after 2022 saw the lowest M&A activity in 17 years.

  • Makes sense why investment bankers have begun searching for work in unusual places, as we covered in last month’s ResNet Review (https://bit.ly/3G3J9XY).

China and Middle East are Energy’s New “It” Couple

• Last week, China bought its first stake in a Qatari gas field, when state-owned China Petroleum & Chemical Corp., acquired a 1.25% share in the first phase of a $30 billion liquefied natural-gas project. The stake followed another deal with QatarEnergy in November to supply 4 million tons of LNG each year to China.

  • You can buy some LNG from anyone. But developing LNG together? That’s how you know it’s getting serious.

• The country's appetite for gas imports has grown, with China becoming the world's largest LNG importer last year.

  • This begs the question, does China love the Middle East for who they really are? Or are they just thirsty for any reliable energy source not in jeopardy to the trials and tribulations of two senile world leaders getting mad at eachother?

• The rising tension between China and the US is also pushing countries to broaden their customer base.

  • Love triangle?

Germany, Too, Likes to Live Dangerously

• On April 15th, Germany stopped producing any electricity from nuclear power plants.

  • Someone call a family attorney, because Germany is officially getting divorced from reality.

• Despite having some of the highest electricity costs in the developed world, the shuttering of the plants marks a historic chapter in German history and is being celebrated by Germany’s decades-old, grassroots anti-nuclear movement.

  • Grassroots movement out of Germany? How have those worked out, historically speaking?

• The move was expected, but is nonetheless seen as a blow to climate advocates who support nuclear energy as a clean, zero-carbon source of electricity.

  • “Climate advocates who support nuclear energy as a clean, zero-carbon source of electricity” … also referred to sometimes as “scientists”?

• As German professor Volker Quasching points out, “With Germany looking to expand solar and wind power very rapidly over the next few years, now is a good time to shut down nuclear reactors to make way for renewable energy”

  • Great point. Logical. The nuclear power plants are what is in the the way of wind and solar. Shut them down and it will be sunny and windy 24/7. Can’t tell you how many times the nuclear power plant has gotten in the way of my wind turbine.

Best of EFT

Coming to an Event Near You!

April 26th - 28th World Oilman's Poker Tournament 2023 - Las Vegas, NV

June 13th - June 15th - URTEC 2023- Denver, CO

A Little About ResNet

ResNet AI Inc. is an oil and gas software company that specializes in operations surveillance and asset management software, as well as bespoke digital & reservoir services. Our mission is to Unite the Field & Office towards common corporate objectives. Our software and services are purpose-built for oil & gas applications, and if this newsletter isn’t testimony to that - then you should check out Tinder for the Oilfield, or WellTender, or as we Shalennials call it: Tender 🔥 - where you can swipe right, swipe left, and get the right guy to the right job at the right time 😎

Interested to Learn More?

Check out the link below for our latest Monthly Feature Release