Since June, oil prices fell below $40 for the first time as demand concerns grow, end of the US Summer driving season and more supply from the OPEC+ alliance are contributing to a flat-short-term outlook for oil prices.
Can the US oil and gas market still be attractive to investors?
[Miami, Florida] dated September 5th, 2020: As the concerns grow for financial market performance, oil prices continue to be volatile under current market conditions falling back due to some economic concerns on the true impact of the pandemic. Investors are looking for alternatives to shelter from the volatility, and oil continues to be the a potential alternative. But not just any oil and gas opportunity, they’re looking for conventional plays with a low lifting cost where projects are safer, and they know the returns won’t be greatly affected by the volatility that market is experiencing now.
One company taking notice of this new trend in the market is InterCapital Energy, a top oil and gas investment firm looking for these types of funding opportunities in the USA oil and gas space.
InterCapital Energy is one of the top oil and gas investment firms looking to cash on the current demand for investment in the conventional oil and gas space, where low lifting costs associated with projects are key to their success. Owing to the stock market volatility and even the bleak outlook in the real estate market, a selective group of international investors is now considering participating in conventional oil and gas projects, where free cash flow is the name of the game.
They are on the lookout for several conventional opportunities wherein the lifting cost will be low, and the economic results will be above average with a short payback period. Even if the oil prices fall below $40 based on the demand concerns, the projects are still likely to bring above-average returns that you can not simply ignore.
Alberto Bellorin, Managing Director and Founder of InterCapital Energy based in Miami, believes “Investors are looking for low risk, low production but steady cash flow on projects; where free cash flow is the name of the game.”
He says, “We have seen that investors are quickly looking for alternatives since oil prices might fall below $40 for the first time since June as demand concerns grow and stock market volatility.” He adds, “Fortunes are built during the down market and collected in the upmarket”.
InterCapital Energy is a boutique energy private equity firm founded in 2017. Their focus is to invest as a working interest partner in conventional upstream projects such as- non-exploratory, appraisal wells, infill drilling, development wells, and legacy fields. They want to bring the top lucrative opportunities to different international investors. They bring substantial technical, financial expertise, and experience to the project with over 100 years of combined experience.
About InterCapital Energy
InterCapital Energy is one of the top oil and gas investment firm based in Miami, Florida. They are an energy private equity boutique firm partnering with independent operators across the United States.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Bengaluru Bytes journalist was involved in the writing and production of this article.