New base 23 june 2021 energy news issue 1440 by khaled al awad i-compressed

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NewBase Energy News 23 June 2021 - Issue No. 1440 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE leads on global climate action through green economy
plans, says WAM Report
WAM/ /Amjad Saleh/Tariq alfaham
The UAE attaches great importance to protecting the environment in its development policy, an
approach it has adopted since 2012 through the 'UAE Green Growth Strategy', to transform its
economy into a green economy by utilising modern technologies, knowledge, and innovation.
The green and digital economy will become the starting point for recovery after the COVID-19
pandemic, the UAE has announced.
The leadership considers the green economy as a tool to control economic growth and direct it
towards sustainable development. It also focuses on protecting the environment, climate, natural
resources and improving the quality of life.
The UAE has won international leadership positions in the competitiveness indicators of the energy
sector in general, and clean energy in particular, after seven international references agreed to
classify it among the top 10 countries in the world with 18 sector-specific indicators in 2020.
Despite the major challenges and economic slowdown worldwide in 2020, renewable energy has
surfaced as a real alternative that heralds a better future.

The International Renewable Energy Agency (IRENA), stated that production capacity from
renewable energy reached record levels surpassing past amounts and estimates. Some 260
gigawatts (GW) of renewable energy were added globally, making around a 50 percent increase
compared to the amount added in 2019.
The renewable energy share has significantly increased for the second consecutive year, making
80 percent of the total generation capacity in the past year, with solar and wind accounting for 91
percent of new renewables.
The UAE is among leading countries in adopting effective policies, such as the economic diversity
policy which focuses on a green economy and diversifying energy sources. This is through capacity-
building in clean and renewable energy, enhancing energy efficiency, transport, and sustainable
urban planning.
It is also at the forefront of regional countries in climate change policies since the Paris Agreement.
In the beginning, it was committed to increasing its clean energy capacity to 24 percent by 2021.
Later, this increased to 50 percent by 2050.
The UAE adopts and shares an inspiring vision with the rest of the countries worldwide, working to
achieve the UN Sustainable Development Goals (SDGs) 2030, and mitigate the effects of climate
change and global warming. To achieve this, several federal and national strategies have been
launched to consolidate sustainable development and shift to clean energy.
Currently, Abu Dhabi and Dubai are making considerable advances in the generation and
development of clean energy sources, mainly solar power. Recently, the world’s biggest solar
photovoltaic plant of 1,177MW at Sweihan in the Emirate of Abu Dhabi was commissioned on an
Independent Power Producer (IPP) basis.
Dubai Electricity and Water Authority (DEWA) is currently implementing the fourth and fifth phases
of the Mohammed bin Rashid Al Maktoum Solar Park. This will be the largest single-site solar park
in the world with a planned capacity of 5,000 megawatts (MW) by 2030. Combining CSP and
photovoltaic technology based on the IPP model, the fourth phase is the largest single-site CSP
project in the world. The 950MW project has the world's tallest solar power tower measuring 262.44
metres in height and the largest thermal storage capacity in the world of 15 hours, generating power
around the clock.

"His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler
of Dubai, launched the World Green Economy Organisation (WGEO) in collaboration with the United
Nations Development Programme (UNDP) in 2016.
We are striving to achieve this transition through the UAE Energy Strategy 2050, to increase the
contribution of clean energy in the total energy mix to 50 percent by 2050, and the Dubai Clean
Energy Strategy 2050 to provide 75 percent of Dubai's total power capacity from clean energy
sources by 2050. DEWA's efforts have resulted in a huge reduction of carbon emissions in
Dubai,''said Saeed Mohammed Al Tayer, MD & CEO of DEWA.
Carbon emissions in Dubai were reduced by 22 percent in 2019, two years ahead of the target set
by the Carbon Abatement Strategy to reduce it by 16 percent by 2021. Clean energy capacity in
Dubai has reached nine percent of the energy mix in 2020, surpassing the target of Dubai Clean
Energy Strategy 2050 to provide seven percent of Dubai's total power capacity from clean energy
sources by 2020," he added.
According to the International Energy Agency (IEA), the demand for hydrogen as a power source
has grown threefold in the past few decades, and its global production is estimated at 70 million
metric tonnes annually. As a result, the costs of producing hydrogen are projected to fall by 64
percent by 2040. The country has already started pilot projects to position itself in the global
hydrogen market.
Dubai Electricity and Water Authority (DEWA) set up the Green Hydrogen project, the first solar-
powered green hydrogen production facility in the Middle East and North Africa. Located at the
Mohammed bin Rashid Al Maktoum Solar Park, the plant is built to accommodate future applications
and test platforms for the different uses of hydrogen, including potential mobility and industrial uses.
Abu Dhabi Future Energy Company (Masdar) partnered with the Abu Dhabi Department of Energy,
Etihad Airways, Lufthansa, Khalifa University for Science and Technology, Siemens, and Marubeni
Corporation, in an initiative to support the development of Abu Dhabi's green hydrogen economy.

They will establish a demonstration plant at Masdar City to explore the development of green
hydrogen, sustainable fuels and e-kerosene production for transport, shipping, and aviation.
DEWA is implementing a hydroelectric power station in Hatta, the first of its kind in the Arabian Gulf.
It will generate electricity from a reservoir at Hatta Dam, delivering production capacity of around
250MW, with a storage capacity of 1,500MW and a life span of 80 years.
As part of DEWA's space programme, Space-D will build DEWA's capabilities and train Emirati
professionals to use space technologies to enhance its electricity and water networks. The
programme will take advantage of Fourth Industrial Revolution technologies, such as the Internet of
Things (IoT), artificial intelligence (AI), and blockchain to exchange information with the help of
satellite communications and earth observation technologies.
The project features the launch of the main satellite equipped with the latest imaging and satellite
communication technologies, which will take place in conjunction with Expo 2020 Dubai. The
performance and efficiency of the photovoltaic solar panels at the solar park will be monitored using
special cameras on the main satellite, which will also help study the impact of weather and climate
change on energy infrastructure and supply.
The Ministry of Climate Change and Environment (MoCCAE) will host the MENA Climate Week
2022 from 23rd March, 2022, on the side-lines of Expo 2020 Dubai. The first-of-its-kind in the Middle
East and North Africa, the event intends to increase the momentum of climate action in the region.
The MENA Climate Week 2022 will convene leaders from the public and private sectors and society
to discuss the serious threat of climate change, and collaborate on swift, bold actions to address
this challenge.
Participants will also be able to follow up on the discussions raised during the 26th Climate Change
Conference (COP26) in November 2021 in Glasgow in the United Kingdom.

Indonesia offers six oil and gas working areas in the first round
of I. Petroleum Bid Round 2021 … Ministry of Energy and Mineral Resources Indonesia
Indonesia has opened the oil and gas working areas bid round after being postponed in 2020 due
to the world crude oil price fluctuation and the Covid-19 pandemic. T
he government has taken efforts to make a more attractive tender by improving the Terms &
Conditions such as contractor's profit split improvement by taking into account the risk factor of the
block,
open bid Signature Bonus, 10% FTP, 100% DMO price implementation during the contract period,
flexibility of PSC scheme (Cost Recovery or Gross Split PSC), new provision of relinquishment (no
mandatory of partial relinquishment of area in the 3rd year of the contract), easy access to data
through Migas Data Repository (MDR) membership mechanism, as well as incentive and tax facility
based on the prevailing laws and regulations.
The announcement was made virtually by Director General of Oil and Gas Tutuka Ariadji at the Oil
and Gas Investment Day event hosted by the Ministry of Energy and Mineral Resources and IPA
on Thursday (June 17).
There are six (6) working areas on offer, consisting of four (4) working areas in
Direct Proposal Tender mechanism and two (2) working areas in Regular
Tender mechanism.
A. Four (4) working areas offered in Direct Proposal Tender are:

B. Two (2) working areas offered in Regular Tender are:
Indonesia is inviting domestic and overseas company (BU/BUT) in upstream oil and gas business
which have the financial and technical capability, ability to meet the requirements of 3 years
minimum Firm Commitment, ability to meet the terms and conditions of working areas tender, as
well as good performance and track record to participate in this first round of Indonesia Petroleum
Bid Round 2021.
Schedule of the first round of Indonesia Petroleum Bid Round 2021:
A. Direct Offer
1. Bid Document Access: 17 June 2021 - 28 July 2021
2. Participating Document Submission: 28 July 2021 - 30 July 2021.
B. Regular Tender
1. Bid Document Access: 17 June 2021 - 12 October 2021
2. Participating Document Submission: 12 October 2021 - 14 October 2021.
Interested companies may register and access Bid Document through e-tender
website at https://esdm.go.id/wkmigas based on the schedule.

Saudi Aramco closes $12.4bn pipeline deal with consortium
Bloomberg + NewBase
Aramco and an international investor consortium, including EIG and Mubadala, today announced
the successful closing of the share sale and purchase agreement, in which the consortium has
acquired a 49% stake in Aramco Oil Pipelines Company, a subsidiary of Aramco, for $12.4 billion.
The consortium consists of a broad cross-section of investors from North America, Asia and the
Middle East. This long-term investment by the consortium underscores the compelling investment
opportunity presented by Aramco’s globally-significant pipeline assets, the Company’s robust long-
term outlook and the attractiveness of the Kingdom of Saudi Arabia to institutional investors, said
an Aramco statement.
As part of the transaction, first announced in April 2021, Aramco Oil Pipelines Company and
Aramco entered into a 25-year lease and leaseback agreement for Aramco’s stabilised crude oil
pipelines network.
Aramco Oil Pipelines Company will receive a tariff payable by Aramco for stabilised crude oil flows,
backed by minimum volume commitments. Aramco continues to hold a 51% majority stake in
Aramco Oil Pipelines Company and retains full ownership and operational control of its stabilised
crude oil pipeline network.

The transaction does not impose any restrictions on Aramco’s actual crude oil production volumes,
which are subject to production decisions made by the Kingdom.
Aramco President & CEO, Amin H Nasser, said: “We are pleased to conclude this transaction with
the global consortium. The interest we have received from investors shows strong confidence in our
operations and the long-term outlook for our business.
It is a significant milestone that reflects the value of our assets and paves the way forward for our
portfolio optimization strategy. We plan to continue to explore opportunities to capitalize on our
industry-leading capabilities and attract the right type of investment to Saudi Arabia.”
Abdulaziz M Al Gudaimi, Aramco Senior Vice President of Corporate Development, said: “The
interest we received for this deal is evidence of continued confidence in our Company from
institutional investors and sets a new benchmark for infrastructure transactions globally.
This transaction utilizes our world-class pipeline infrastructure to create additional value for our
shareholders, reinforcing our Company’s resilience and ability to adapt in a rapidly changing
business environment.”
R Blair Thomas, EIG’s Chairman & CEO, said: “We believe this is the marquee infrastructure
transaction globally and we are pleased to see that so many leading international investors agree
with us.” –
Satellite imagery of Saudi Arabia
MANIFA, SAUDI ARABIA - MARCH 19: The Manifa Heavy Crude mega project is located on the
Manifa oilfield, off the Arabian Gulf coast of Saudi Arabia. (Photo by Getty Images via Gallo
Images/Orbital Horizon)

India refiners' May crude processing skids to 7-month low
Reuters + NewBase
Indian refiners' crude throughput slipped to its lowest level in seven months in May as a raging
second wave of coronavirus drove a slump in domestic fuel demand and crude imports, government
data showed on Tuesday.
Refiners processed about 4.5 million barrels per day (bpd) or 18.97 million tonnes of oil last month,
data from the country's Ministry of Petroleum and Natural Gas showed. That was 7.7% below April
levels but still 16% higher than a year earlier.
"We're expecting to see runs dip in June before ramping up towards the end of the year on a
combination of seasonal demand strength post-monsoon and recovery from the impact of the
second wave of the pandemic," Natixis commodities strategist Joel Hancock said.
The dip in refinery processing comes on the back of a 5.5% slip in India's crude oil imports from
April and May's fuel demand in the third biggest oil consumer slumping to its lowest since August
last year.
Demand bottomed in May and will be ramping up steadily through the second half of this year and
will rise sharply in the last quarter, Hancock said. Analysts noted that refiners remain optimistic over
a rebound in oil demand as vaccinations have ticked up and COVID-19 cases eased this month.
"We've seen this story play out in the U.S. and the UK, as the virus gets under control and
vaccinations go up, you're probably going to have a tremendous amount of pent up demand (in
India) that's going to be unleashed onto the market," said Edward Moya, senior market analyst at OANDA.
Indian refiners operated at an average rate of 92.37% of capacity in May, down from April's 96.82%,
the government data showed. Natural gas output rose 19.1% to 2.74 billion cubic metres, while
crude oil production eased 6.2% to 580,000 bpd or 2.44 million tonnes, data showed.
 Refinery processing declines
for a second straight month.
 Refinery capacity utilization
rate drops to 92.37% in May.
 Crude oil production eased
6.2% to 580,000 bpd.

U.S. natural gas exports and non-power sector demand to drive
higher prices through 2022…… U.S. EIA, Short-Term Energy Outlook (STEO), June 2021
In our June 2021 Short-Term Energy Outlook (STEO), we forecast U.S. natural gas prices to
increase during 2021 and 2022 from 2020 prices as a result of expected growth in natural gas
consumption and natural gas exports that outpace expected growth in production and imports.
We also forecast the 2021 Henry Hub natural gas spot price to average $3.07 per million British
thermal units (MMBtu), an increase of $1.04/MMBtu from the record lows of 2020.
Increases in both U.S. natural gas exports and consumption from all other natural gas-consuming
sectors but electricity generation are driving the high Henry Hub spot prices reflected in the STEO.
The high natural gas prices set in February 2021 set the annual average 2021 price path higher,
making 2021 the peak in our forecast.
The February 2021 cold snap that affected much of the central part of the country, including Texas,
reduced supply and increased demand for natural gas, resulting in near-record storage
withdrawals that drove the extremely high natural gas prices.
The February 2021 Henry Hub price averaged $5.35/MMBtu, or $3.44 MMBtu higher than in
February 2020. Although prices did not remain elevated, the February price has raised the annual
2021 average.
The increase in U.S. natural gas demand in 2021 is primarily a result of a 3.8 billion cubic feet per
day (Bcf/d) increase in U.S. exports of natural gas from 2020 to 2021.
We expect U.S. exports of natural gas by pipeline and as liquefied natural gas, combined, to average
18.3 Bcf/d in 2021 and 18.4 Bcf/d in 2022, both exceeding the current record of 14.4 Bcf/d set in
2020. We expect increases in natural gas consumed in the industrial, residential, and commercial
sectors to contribute to the overall increase in 2021 natural gas demand.
These increases in demand are slightly offset by a decrease in natural gas consumption in the
electric power sector as a result of higher natural gas prices. We expect natural gas consumed in
the electric power sector to average 29.4 Bcf/d in 2021 and 29.3 Bcf/d in 2022, both decreases from
31.7 Bcf/d in 2020.

We expect the Henry Hub average spot price to decrease to $2.93/MMBtu in 2022 from the 2021
average. In 2022, U.S. supply grows by 0.66 Bcf/d, but non-power sector demand grows by 0.31
Bcf/d—a slower rate than supply growth.
In 2022, a 1.8 Bcf/d rise in U.S. natural gas production drives the forecast growth in natural gas
supply, which is slightly offset by a decline in U.S. imports of natural gas. U.S. natural gas supply
will likely outpace U.S. demand in 2022, which supports our forecast of a price decline from 2021
to 2022.

NewBase June 23-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Brent Oil Above $75 With Report Pointing to Falling Stockpiles
Bloomberg + NewBase
Crude Oil prices rose with Brent above $75 and WTI above $73 a barrel after an industry report
pointed to another decline in U.S. crude stockpiles, adding to a bullish outlook and growing global
demand.
West Texas Intermediate for August delivery rose 0.51% to $73.22 a barrel on the New York
Mercantile Exchange 1.15 AM EDT after slipping 0.4% in the previous session. The July contract
expired Tuesday. Brent for August settlement was up 0.63% to $75.28 on the ICE Futures Europe
exchange after dipping 0.1% on Tuesday.
Oil price special
coverage

Futures in New York climbed 0.5% after edging lower on Tuesday. The American Petroleum Institute
reported crude inventories slid by 7.2 million barrels last week, according to people familiar with the
data. If confirmed by government figures due later Wednesday, that would be a fifth straight weekly
draw, the longest run of declines since January.
Key consumers including the U.S. and China have seen a strong rebound from Covid-19, boosting
fuel demand and helping to drain bloated inventories built up during the pandemic.
OPEC+ is scheduled to meet next week to discuss its production policy and some nations, most
notably Russia, are considering a potential output increase. A possible gain in crude flows from Iran
is set to be delayed, with Tehran signaling nuclear talks may extend beyond August.
“Prices are comfortably placed where they’re now with the supply tightness and healthy demand
recovery, joined by a delayed Iranian nuke deal,” said Will Sungchil Yun, senior commodities analyst
at VI Investment Corp in Seoul. “All eyes are now on the OPEC+ meeting next week.”
The prompt timespread for Brent was 77 cents a barrel in backwardation -- where near-dated
contracted are more expensive than later-dated ones. The bullish structure eased from 85 cents on
Monday.
Stockpiles at the key U.S. storage hub of Cushing fell last week, while fuel inventories including
gasoline rose, the API said. The Energy Information Administration is forecast to report on
Wednesday that nationwide crude stockpiles slid by 3.5 million barrels, according to a Bloomberg
survey.

U.S Shale’s 400% Rise in Frack Crews Not Enough to Boost Output
Bloomberg - David Wethe
Even a more than 400% jump in the number of fracking crews working the U.S. shale patch isn’t
enough to send oil output soaring. In fact, it’s just enough to keep production relatively flat this year,
according to Primary Vision Inc., which has tracked data on frack crews since 2013.
After an 85% tumble in the number of crews completing wells during the depths of the pandemic,
the figure has steadily recovered over the past year. It now stands at 235, up from 45 on May 22,
2020. That could grow by roughly another 6% to 250 crews by year end, Scott Levine, an analyst
at Bloomberg Intelligence, wrote last week in a report.
But because of the way well production decreases over time, the jump in crews is only enough to
keep output flat, rather than boosting it.
“Operators are still focusing on getting out of 2021 with a little bit better managed expectations and
better hedge profile,” Matt Johnson, chief executive officer of Primary Vision, said Tuesday in a
joint webcast with Bloomberg Intelligence forecasting the pressure-pumping market. “Where is that
relative to the actual production? We’re pretty close to managing it at this point.”
Because shale wells see steep declines early in their life of production, the U.S. oil market requires
more wells to be drilled and completed in order to replace them and hold output constant. After
dramatically turning off activity last year due to history’s worst crude crash, the oil service companies
had to ramp up frack crews in order to get new production back online. The mantra among shale’s
biggest explorers is to keep output relatively flat this year and send profits back to shareholders.

NewBase Special Coverage
The Energy world – June - 23- -2021
Activist Investors Move On From the Factory Floor
Industrial conglomerates were a favorite target a few years ago. Not so anymore.
By Brooke Sutherland
U.S. industrial giants’ clunky structures and lagging returns were like catnip for change-
seeking shareholders last decade. Companies ranging from Honeywell International
Inc. and General Electric Co. to Dover
Corp. and the former United
Technologies Corp. faced pressure to
break up or otherwise improve their
operations. All in, RBC analyst Deane
Dray has estimated more than a third of
the nearly 30 multi-industrial
companies he follows attracted an
activist investor in the 2010s.
But interest has slowed in recent years.
“I haven’t even thought about activists
in forever,” Scott Davis, chief executive
officer of Melius Research, an
independent firm focused on the
industrial sector, said in a phone
interview.
The pandemic is partly to blame: The scramble to simply survive complicated activists’ ability to
lobby for change and campaigns at companies across the U.S. economy fell to a five-year low in
2020, according to an analysis from investment bank Lazard Ltd.
While activism started picking up again in the fourth quarter — with investors launching
pushes at Exxon Mobil Corp., Walt Disney Co. and Public Storage, among others — things have
remained noticeably quiet when it comes to large diversified manufacturers.
Even before Covid, activist investors were prioritizing other sectors. Only one campaign at a major
industrial conglomerate comes to mind for 2019: D.E. Shaw & Co.’s push for cost cuts, corporate
governance improvements and a breakup at Emerson Electric Co.
That effort was only a partial success: D.E. Shaw got one of its preferred candidates on the board
and Emerson committed to reviewing its executive compensation plan and stepping up its
restructuring efforts.

But the company declined to separate its hodgepodge climate, tools and home-product business
from its automation unit. The fact that Emerson — a company whose stock has been more middle
of the pack than shining star — was able to avoid a more substantial shakeup with relatively little
fuss helps to illustrate why the sector has fallen out of favor with activists more recently.
Mixed Bag
Emerson's stock has lagged behind peers' shares but its gross margins are in line or higher than
some better-performing rivals
When the D.E. Shaw campaign was announced, analysts were mixed on whether a breakup would
actually boost the value of Emerson shares.
Most agreed the stock traded at some kind of a discount to what the company could be worth if its
main units were valued comparably to peers, but the average estimate suggested it wasn’t a sizable
enough gap to justify the time and cost it would take to orchestrate a split.
Even the case for more aggressive cost cuts drew some pushback. Emerson’s eight corporate
jets (plus a helicopter) made for terrible optics but analysts including Barclays Plc’s Julian
Mitchell pointed out that certain measurements of cost control only looked worse than peers
because Emerson didn’t adjust its numbers as heavily.
On a gross or free cash flow basis, the company’s margins actually stacked up quite well relative to
its competitors. Put another way, Emerson shares had underperformed but it wasn’t clear that the
company’s amalgamation of businesses or operational cost management was to blame. There was
nothing glaringly wrong with the company and thus no easy fix.
It’s a similar story elsewhere. Most of the obvious breakups have already happened, whether at the
behest of an activist or because management was worried one might show up. With the pandemic’s

lopsided effects reminding investors of some of the benefits of diversification, the dogged pursuit of
simplicity for simplicity’s sake is now being rethought and the concept of balance is starting to
come back in vogue. Case in point:
It ended up being pretty helpful during the pandemic that Emerson still had a division that sold air-
conditioner components, InSinkErator garbage disposals and hand tools.
Those markets benefited from the boom in home-improvement spending and increased interest in
indoor air quality, even as demand for heavy-duty automation equipment used for processing
chemicals and in energy markets remained depressed.
Some recent spinoffs in the industrial sector haven’t worked very well. Garrett Motion Inc., the
turbocharger business spun off from Honeywell in 2018 after Third Point sought changes, filed for
bankruptcy last year.
Vontier Corp., a fueling-equipment and automotive-repair tools company, has been a dud since
spinning off from Fortive Corp. last fall. Many of the remaining industrial divestiture candidates are
tied to the oil and gas sector, and it’s unlikely those assets would fetch attractive valuations from
either a spinoff or a sale.
What's less appreciated is that industrial companies have also gotten better at running their
businesses. The pandemic was a once-in-a-century catastrophe but the hit to manufacturers’ profit
margins was fairly limited compared to past downturns outside of the hardest hit aerospace sector.
Industrials are the only sector outside of tech that has expanded margins in each of the past five
decades, and the gap between peaks and troughs has narrowed considerably, according to a
February analysis from Davis of Melius Research.
This reflects the benefits of consolidation, the offshoring of supply chains to lower-cost countries
and a shift toward inherently more profitable businesses like software. But it also comes down
to more disciplined day-to-day management.

“I don’t feel like there’s a lot of bad management teams left,” Davis said. “The companies in our
group that have historically had bad management teams have turned over and the new guys have
actually done a good job.”
Stocks have responded accordingly, with most multi-industrial companies at 52-week highs, if not
records. That doesn’t leave much for activists to pick on. Of course, there will still be campaigns.
But they’re likely to be more nuanced and result in half-wins.
Starboard Value, for example, waged a proxy fight at agricultural chemicals company Corteva Inc.
earlier this year. Corteva isn’t a manufacturing conglomerate, though it used to be part of one: The
company was spun off from DuPont de Nemours Inc. in 2019.
Starboard blasted the performance of Corteva CEO Jim Collins and urged the company to improve
its profitability, in part by ousting
him.
In the initial response to the
proxy fight, Corteva
chairman Greg Page said
the board agreed with some
of Starboard’s criticisms but
noted the investor hadn’t yet
outlined any specific
recommendations for
operational improvements
beyond what the company
was already doing.
Bloomberg Intelligence analyst Jason Miner said margin gains for Corteva will likely come from
technology advancements, which take longer and are trickier than simply cutting costs or replacing
management. Corteva agreed in March to put three of the activist’s suggested directors on its board,
but Collins kept his job.
RBC’s Dray highlighted Roper Technologies Inc. as the most likely industrial company in his
coverage to attract an activist. S
hares of the company have underperformed this year as investors pivot toward stocks that were
harder hit by the pandemic and are perceived as having a bigger opportunity for a bounce on the
recovery.
That could create an opening for an activist to push for Roper to divest its legacy industrial
businesses, which have shrunk in importance amid the company’s software M&A push, Dray wrote
in a March report.
But it wasn’t that long ago that Roper was the one to beat in the industrial world. And conversely,
Roper’s mix of more resilient, software-inclined businesses and the more economically volatile
legacy pump and valve operations means the company can be both a haven in the pandemic and
a backdoor play on a recovery, Davis of Melius Research has argued.
Time for a Shakeup?
Roper's legacy industrial businesses account for a smaller slice of its overall revenue as software-
oriented businesses take priority

There are likely better opportunities in other sectors. “This is kind of the golden age of industrials
for the first time in 30 years,” Davis said. “They’re good businesses. Demand tailwinds are tangible
and out there. Costs have been reasonably managed. Balance sheets aren’t in crazy shape. It feels
right. It would be hard for an activist to come in.”
Finally.
After 17 years of bickering, the U.S. and European Union have agreed to an extended truce in a
dispute over state subsidies for aircraft development. The two sides will suspend the tariffs they'd
slapped on $11.5 billion of each others’ goods — including wine, cheese and tractors — for five
years.
It’s an important step toward resolving a feud that had long looked rather silly and self-defeating.
The initial U.S. complaint was tied in part to Airbus SE’s launch of an A380 superjumbo plane that
has now been discontinued, for example, and governments around the world have bent over
backwards to support their aviation industries during the pandemic.
The U.S. and the EU both retain the right to reimpose duties if the other party fails to live up to the
accord. Some former Trump administration trade officials argued the U.S. should have gotten firmer
commitments from the EU, particularly regarding compensation for outstanding subsidies, before
agreeing to the ceasefire.
But it’s telling that both Airbus and Boeing hailed the deal as good news. Both companies have
already taken steps to address points of contention over low-interest launch loans and tax breaks,
so the bigger impact of the agreement will be to remove an overhang that complicated deliveries,
Vertical Research analyst Rob Stallard wrote in a report.

One interesting question is how the debate over government support for aircraft development will
evolve as planemakers and their suppliers turn their attention to investing in more environmentally
friendly technologies that are a priority for both the EU and the U.S. This week’s truce includes an
agreement that Boeing and Airbus will develop all future passenger jets without subsidies.
Deals, Activists and Corporate Governance
Danaher Corp. is buying life-sciences company Aldevron for $9.6 billion from private equity firm
EQT. Aldevron manufactures high-quality plasmid DNA and proteins, and it supplied some of the
building blocks for mRNA versions of the Covid-19 vaccines.
For Danaher, it's a smart bet on a market that has growth potential well beyond the immediate
pandemic needs. Aldevron is expected to generate $500 million in revenue in 2022 with a more
than 20% annual growth rate and operating margins in the mid-40% range, Cowen analyst Doug
Schenkel said in a note, citing management.
The takeover pushes Danaher even further into the cell and gene-therapy market after last
year's $21.4 billion purchase of GE’s biopharmaceutical business. That raises the question of
whether the company might break up yet again.
Danaher’s environmental and applied-solutions unit sells barcode printers, water-treatment
technology, Pantone color systems and quality control testing tools, among other things. It was
already the company’s smallest unit by revenue before the Aldevron deal and it increasingly looks
like an outlier.
Danaher has already spun off both its industrial-products and dental units as it remade itself into a
life-sciences and diagnostics company. Is the environmental business next?
GE and Safran SA this week extended their CFM jet-engine joint venture to 2050 and launched a
program aimed at developing next-generation technology. The goal is to deliver a 20%-plus
reduction in fuel consumption and carbon emissions relative to today’s systems and to put the
innovations nurtured by the engineering collaboration into operation by the mid-2030s.
The program will focus on compatibility with alternative-energy sources such as hydrogen and
sustainable aviation fuels and include hybrid electric technology and open-fan architecture
(meaning the engine blades aren’t surrounded by the traditional casing).
The ability to run these future engines in whatever form they may take on either hydrogen or
sustainable aviation fuels is important. Airbus is aiming to put a hydrogen-powered plane into
service by 2035 but in the meantime, it’s also working to increase the use of sustainable aviation
fuel. Boeing CEO Dave Calhoun has been more skeptical of the viability of hydrogen technology at
scale and has said that won’t be a realistic option until at least 2050.
Transitioning conventional propulsion systems to use more sustainable aviation fuels will
be “a great answer and get us a lion's share of the way towards net zero” emissions, he said earlier
this month.
In other sustainability news for GE, the company is partnering with LafargeHolcim and Neowa on
two separate projects for recycling wind-turbine blades. When wind turbines exceed their lifespan,
they need to be retired or repowered, and discarded blades often end up in landfills. BloombergNEF
has estimated wind-farm owners will have to decommission more than 250,000 blades by 2030.
Separately, SPX Corp. agreed to sell its power transformer business to Prolec GE, a joint venture
between GE and Mexican company Xignux SA de CV, for $645 million.

NewBase Energy News 23 June 2021 - Issue No. 1440 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as Technical Affairs Specialist for Emirates General
Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC
area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder
of NewBase Energy news articles issues, an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities &
gas compressor stations. Executed projects in the designing & constructing of gas
pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted &
finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements.
Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass
energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous
conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-
in-Chief of NewBase Energy News and is a professional environmental writer with more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management and environmental sustainability in different parts of the world. Khaled has become a reference
for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC
leading satellite Channels. Khaled can be reached at any time, see contact details above.

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