The E&P Investment Guide (2013): A Private Capital Guide

Abstract

The energy sector has been one of the few bright spots in the global economy over the past five years, and it has grown so large that it is impossible to ignore – by many measures, we are on the dawn of a North American (N.A.) energy renaissance with implications that will carry through the energy supply chain into manufacturing.We acknowledge the many challenges for Exploration and Production (EP a shortage of mid-continent liquids take-away capacity, with these bottlenecks leading to relatively weak crude prices, and; a frenzy of investment activity in the sector – both organic and M&A – has led to some relatively high transaction prices.Notwithstanding, the same trends and discontinuities behind these challenges create windows of opportunity – in both public and private markets, and at both the company and project level. Not only is the N.A. upstream still an attractive sector for investment, but also several current trends lead to actionable investment theses. We outline some potential examples in liquids, gas, and the supply chain technology and services.