By Robert Stephens The world's population is forecast to increase from 7.3 billion today to 9.7 billion by 2050. That's a rise of 33% in just 34 years and this brings a significant challenge. That is how to balance the increased energy needs of a larger population of people with a required reduction in carbon dioxide emissions. Shell is on-track to become a leading light in this arena. Therefore, I believe it has a very bright long-term future.
Shell (LON:RDSB) is intent on responding positively to the challenge of a higher population and a requirement for lower carbon dioxide emissions. In this sense, it is a rapidly changing business. Its acquisition of BG Group is perhaps the best evidence of this. BG adds significantly to Shell's LNG capabilities and makes Shell the world's biggest trader of liquefied natural gas (LNG). Although LNG is a fossil fuel, burning LNG emits 30% less carbon dioxide than oil and 45% less carbon dioxide than coal for an equivalent amount of heat.
However, Shell is not about to become a pure play LNG producer. It is investing in other technologies as it becomes a lower-carbon energy producer. For example, it is now one of the world's largest suppliers of low-carbon biofuel through its Raizen joint venture in Brazil. This produces ethanol from sugar cane. Shell's lubricants also offer improved energy efficiency for motorists, while its increased offering of LNG as a transport fuel will help to diversify its low carbon offering yet further… Click Here To Read The Full Story The Master Investor Market Report - The FTSE 100 closed the day at 6,895.86, a decrease of 23.56 points.
- The FTSE 250 fell 3.04 points to finish at 17,861.82.
- The FTSE All Share dropped 10.80 points to finish at 3,753.43.
- The FTSE AIM All Share ended the day at 818.82, down by 1.16 points.
Film and TV content distributor Entertainment One (ETO) saw the valuation of its library increase from $1 billion (£0.77 billion) to $1.5 billion (£1.16 billion) following an independent review. The company is on track to add 1,110 half hours of new television content over the full year, while the film division should be able to cut $10 million (£7.7 million) in annual expenses. The shares rose by 6.24% to 226.40p. |
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