Core Insights - Shell plc (NYSE:SHEL) is recognized as one of the best crude oil stocks for dividends and is also included in the list of best non-US stocks favored by hedge funds [1][5] Group 1: Oil Discovery - Shell, in partnership with INEOS, has made a new oil discovery in the Gulf of America, confirming hydrocarbons at the Nashville exploration well in the Norphlet region [3] - Shell operates the Nashville well with a 79% working interest, while INEOS holds the remaining 21% [3] Group 2: New Contract and Project - Shell has selected the Valaris drillship, VALARIS DS-8, for operations off the coast of Brazil, with a multi-year contract valued at approximately $300 million [4] - The drillship will be deployed at Shell's Orca project, which is designed to produce up to 120,000 barrels of oil per day, with production start-up scheduled for 2029 [4] - The contract with Valaris is set to commence in the first quarter of 2027 and has an estimated duration of approximately 800 days, with an option to extend by about one year [4]

Core Insights - Leading oil and gas companies are focusing on decarbonisation targets through a mix of existing measures and emerging technologies, with carbon capture being a key strategy for emission reduction [1] - Companies are reviewing their interim targets set for 2030 due to market volatility and policy uncertainties, leading to adjustments in timelines and investment priorities [2] - The pace of investment in renewable energy sources like solar and wind has slowed, as major firms prioritize financial discipline and value maximization from traditional hydrocarbon assets [3] Group 1 - Oil and gas firms are actively involved in solar and wind projects, recognizing their long-term growth potential, but investment has been tempered by market challenges and geopolitical instability [3] - Heightened energy security concerns and high capital costs for renewable projects have led to increased fossil fuel demand, prompting companies to focus on conventional operations [4] - The transition to low-carbon energy is ongoing but at a slower, more pragmatic pace, shifting from immediate action to a risk-adjusted, demand-driven approach [5]

Key Takeaways SHEL and its partner confirmed high-quality oil at the Nashville well in the Norphlet formation. INEOS Energy holds a 21% stake, calling the discovery a key step in expanding its US Gulf presence.SHEL operates the well with a 79% stake using the Deepwater Proteus rig, while its partner holds 21%.Shell plc (SHEL) , a London-UK-based integrated oil and gas company, and INEOS Energy have announced a significant oil discovery in the Norphlet formation in the Gulf of America. The exploration well, ...

Core Insights - The analyst has over 10 years of experience researching more than 1000 companies across various sectors, including commodities and technology [1] - The focus has shifted from a personal blog to a value investing-oriented YouTube channel, emphasizing metals and mining stocks while also covering other industries like consumer discretionary, REITs, and utilities [1] Company and Industry Summary - The analyst's preferred sector for coverage is metals and mining, indicating a strong interest in this area for potential investment opportunities [1] - The analyst has experience with a diverse range of industries, suggesting a broad understanding of market dynamics and investment strategies [1]

Core Insights - The appointment of Meg O'Neill as BP's CEO marks a significant milestone as she will be the first woman to lead a major oil company, effective April 1, 2026 [1] - O'Neill's leadership change at BP has sparked speculation about a potential merger with Shell, which could be the largest deal in decades [2][3] Group 1: Leadership Change - Murray Auchincloss is stepping down immediately, and O'Neill from Woodside Energy will take over as BP's next CEO [2] - O'Neill has a strong background, having spent 23 years in leadership roles at ExxonMobil and leading Woodside Energy to become the largest energy company on the Australian Securities Exchange [6] Group 2: Market Speculation - Analysts suggest that O'Neill's arrival could bring BP closer to a merger with Shell, especially given BP's recent struggles to satisfy investors [3] - Shell previously indicated it had no intention of making an offer for BP, but this restriction will expire on December 26, which could open the door for renewed discussions [5] Group 3: Industry Context - The oil industry is currently facing challenges, with BP being perceived as weaker than other supermajors, making it a potential target for takeover bids from Shell or U.S. giants like ExxonMobil and Chevron [4]

Core Viewpoint - Shell plc (NYSE:SHEL) is recognized as one of the best non-US stocks to buy according to hedge funds, following its announcement of a significant investment decision regarding the waterflood project at the Kaikias field in the US Gulf of Mexico [1] Group 1: Project Details - The Kaikias waterflood project will utilize the waterflood method to enhance oil recovery, injecting water to displace oil into adjacent production wells [2] - This project is expected to increase recoverable resource volumes by approximately 60 million metric barrels of oil equivalent and extend the production lifecycle of the Ursa platform by several years [2] Group 2: Ownership and Stake - Shell currently holds a 61.3484% ownership stake in the Ursa asset, alongside BP Exploration & Production Inc. and ECP GOM III [3] Group 3: Market Sentiment - Wall Street analysts remain optimistic about Shell's stock, with Michele Della Vigna from Goldman Sachs and Lydia Rainforth from Barclays both maintaining a Buy rating and a price target of £2,686.5 [4]

Core Viewpoint - Global low-carbon energy investment continues to grow, with the International Energy Agency (IEA) predicting that total clean energy investment will exceed $2.2 trillion by 2025. However, the oil and gas industry's low-carbon investment remains above $30 billion, but its share is declining [1]. Group 1: Investment Trends - International oil companies have been rapidly investing in low-carbon and renewable energy sectors due to government policies, market trends, and shareholder interests. However, they are now facing internal and external pressures that are affecting their low-carbon strategies [2]. - Companies that have diversified quickly over the past five years are experiencing dual pressures of value growth and cash flow stability, leading some to adjust their carbon reduction targets and prioritize short-cycle, high cash flow projects [2][6]. - Despite some companies lowering their carbon reduction goals, overall low-carbon investment by international oil companies has steadily increased since 2020, with European firms leading in investment scale and growth compared to their American counterparts [6][10]. Group 2: Key Investment Areas - The three main focus areas for low-carbon investments by international oil companies are renewable electricity (wind and solar), biofuels, and Carbon Capture, Utilization, and Storage (CCUS), with a total investment of $86.4 billion in these areas over the past decade [7]. - European companies are diversifying their investments across various sectors, while American companies are more focused on CCUS and biofuels. CCUS is viewed as a "certain strategic pillar" for the industry, with many projects underway in Europe and North America [8][9]. - Hydrogen is also a strategic focus, with European companies favoring green hydrogen and American companies leaning towards blue hydrogen, although recent uncertainties have led to a more cautious approach to hydrogen investments [9]. Group 3: Resource Dependency - The transition to green energy is increasing the demand for key mineral resources, with lithium demand expected to grow more than threefold by 2023. This trend highlights the oil and gas industry's growing reliance on mineral resources to support green transitions [10]. - Companies like ExxonMobil are entering the lithium market, with plans to produce lithium materials for over 1 million electric vehicles by 2030, indicating a strategic shift towards securing essential resources for future energy needs [10].

Core Insights - Shell plc has made a final investment decision on a waterflood project at the Kaikias field to enhance supply at its Ursa production platform, aiming to increase recoverable resources [1][8] Group 1: Waterflood Project Details - The waterflood project is expected to increase recoverable resources by approximately 60 million metric barrels of oil equivalent on a P50 basis, classified as 2P resources [2] - The first water injection is scheduled for 2028, which will extend the productive life of the Ursa platform and support long-term liquids production [3] Group 2: Operational Context - Shell operates the Ursa platform with a 61.35% interest, alongside partners BP (22.69%) and ECP GOM III (15.96%) [3] - The Kaikias field, discovered in 2014 and began production in 2018, is located in water depths exceeding 4,000 feet [4]

Core Insights - The article discusses the positive outlook for international stocks in 2026, highlighting robust earnings, economic growth, and attractive valuations compared to the S&P 500 [2] - It emphasizes the potential for diversification away from the tech-heavy S&P 500, suggesting that international stocks are an appealing alternative for investors [2] Economic Context - Several international economies are expected to implement significant fiscal stimulus, which is anticipated to enhance stock market performance [3] - Germany's fiscal spending is projected to increase, with a focus on a €500 billion infrastructure fund and raising defense spending to 3.5% of GDP by 2029 [3] - Japan has announced its largest stimulus package since the pandemic, totaling ¥21.3 trillion (approximately $136 billion), aimed at inflation relief for key industries such as AI, semiconductors, and shipbuilding [4] Investment Methodology - The list of the 10 Best Non-US Stocks to Buy According to Hedge Funds was curated using the Finviz stock screener, WSJ, and Insider Monkey's Q3 2025 database [6] - Stocks were ranked based on the number of hedge fund holders, with market capitalization data sourced from the Wall Street Journal [6] Stock Highlights - **Shell plc (NYSE:SHEL)**: - Market Capitalization: $204.91 billion - Number of Hedge Fund Holders: 48 - Announced a final investment decision on its waterflood project at Kaikias field, expected to increase recoverable resource volumes by approximately 60 million metric barrels of oil equivalent [8][10] - Wall Street maintains a bullish outlook, with a Buy rating and a price target of £2,686.5 from Goldman Sachs and Barclays [12] - **Novo Nordisk A/S (NYSE:NVO)**: - Market Capitalization: $224.04 billion - Number of Hedge Fund Holders: 50 - Received a positive opinion from the European Medicines Agency for a higher dosage of Wegovy, showing improved weight loss results of around 20.7% at 72 weeks [14][15] - The stock has a cautious outlook from Wall Street, with a Hold rating and a price target increase from $47 to $54 by HSBC [17]

Core Insights - The energy sector in 2025 is characterized by a "return to fundamentals" and a significant increase in structural demand, with a 6.2% growth in Q3 2025 compared to a total return of 5.6% in the previous year [1][10] - The growth is driven by traditional industrial needs and the rapid electrification of the global economy, termed the "Age of Electricity" [1] Factors Influencing the Energy Sector - The AI Power Crunch is a major catalyst, with global data center investment projected to reach $580 billion in 2025, shifting capital towards companies providing reliable power [4] - Global investment in renewable energy development reached a record $386 billion in H1 2025, marking a 10% year-on-year increase, driven by offshore wind and small-scale solar [5] - Despite the green transition, global oil demand growth rebounded to 920 thousand barrels per day in Q3 2025, more than doubling sequentially, benefiting major oil companies [6] - Traditional integrated oil and gas companies and electric utilities have excelled due to robust cash flows and their essential role in the energy sector [7] Outlook for 2026 - The demand for electricity is expected to anchor the energy sector, with data center power demand projected to more than double by 2030 [8] - Companies involved in natural gas production, flexible generation, and grid-connected infrastructure are favored, alongside traditional majors pivoting towards low carbon power assets [9] Energy ETFs Performance - Major Energy ETFs like XLE gained 4.8% year to date, providing low-cost exposure to diversified energy leaders [10] - The Vanguard Energy ETF (VDE) has assets of $7.1 billion and gained 4.1% year to date, with top holdings including Exxon Mobil, Chevron, and Conoco Phillips [12][13] - The Fidelity MSCI Energy Index ETF (FENY) has assets of $1.3 billion and rose 4.2% year to date, with similar top holdings [14] - The State Street Energy Select Sector SPDR ETF (XLE) has assets of $26.12 billion and gained 4.8% year to date, also featuring major oil companies in its top holdings [15]