While here at home in the United States we can rely on oil giants like Exxonmobil to continue to produce oil and gas products, you may be surprised to find out that this is not the case around the rest of the world. Just earlier this week, a state-owned oil and gas company named Dong, an acronym for Danish Oil and Natural Gas, sold the entirety of their oil and gas business sector to Ineos for one billion pounds. In addition to wrapping your head around the sheer enormity of this deal, let’s take a moment to consider that Dong is the largest energy company in Denmark.
For me personally, the largest energy company in the Kingdom of Denmark making a decision this drastic I feel could unintentionally result in energy complications for the citizens of Denmark in the future. Without getting into a debate about green energy or oil and gas, as if there can only be one, to completely deny the capabilities of the energy source that has been proven most efficient in the past century, oil and natural gas, seems a bit hasty. Although concern for the people of Denmark’s energy options may be on the rise, the good news is where there’s a seller you need a buyer.
Whether you have heard of Ineos making moves recently in the oil and gas business headlines or not, you certainly will sooner rather than later. For those out of the loop, Ineos is a privately owned multinational chemicals company stationed in the UK best known for producing and selling petroleum products. However, in recent months Ineos has made their plans to step into the oil and gas sector obvious over the course of a couple of business acquisitions. These include purchasing a two-hundred million dollar major pipeline from oil giant BP, the north sea pipeline, as well as the purchase of Dong’s oil and gas assets mentioned above.
One chapter in the textbooks of oil history’s annals closes, but at the same time another opens anew. And I, for one, am excited to see where this story is going.
Written by: Chris Stomberg