Whenever looking at the high per capita earnings of oil producing countries like the United Arab Emirates, it is important to remember that the initial discovery of oil was in rural Pennsylvania. But because of the limited reserves under the Earth in Pennsylvania, its residents are not as rich as those in Abu Dhabi. Geologists found supplies of oil in Texas and later discovered massive amounts in the Middle East.
But a publicly traded energy company, Talen, in Allentown, Pennsylvania was recently in the business news. Talen had been acquired by Riverstone to take the company private. Riverstone was founded in 2000 and has $34 billion of capital to conduct their buyout and growth capital investments in the fields of energy production including renewable energy. Riverside has offices in Houston, London, Mexico City, and New York. Riverstone was founded by David Leuschen and Pierre Lapeyre.
Riverstone previously held about a third of Talen’s common stock and the acquisition served to substantially drive up the share value of Talen. A share value that had fallen dramatically over the course of the year.
There are two different and important aspects of this acquisition of a small company by a larger conglomerate. The first is that the long-held dependence on fossil fuels that most of the modern world, unfortunately, relies upon is still considered viable. The second is the denial that these same fossil fuels cannot supply a growing world’s energy desires for many decades longer, and if the necessary change to alternative natural energy is not fully undertaken, the future of the largest and least modern energy consuming countries is uncertain. This dark scenario should be of great concern, especially, to those companies that are structured on supplying energy products to energy greedy consumers who seem to not care about the future consequences.
But for now, Talen is in the good hands of Riverstone whose ample pockets can ride out any downturn or fluctuation in energy prices.