• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 5 mins Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days The United Nations' AGENDA 2030 - The vision for One World Governance ...an article by the famous Dr Robert Malone
  • 2 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 2 days "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
  • 4 days Hopes Are Dashed For International Oil Companies In North Iraq
  • 22 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 3 days The Federal Reserve and Money...Aspects which are not widely known
Are Gas Stations Really Inflating Prices For Profit?

Are Gas Stations Really Inflating Prices For Profit?

Despite what politicians may say,…

How To Play The Surge In Lithium Demand?

How To Play The Surge In Lithium Demand?

ALB now looks like the…

IEA Sees Higher Oil Demand This Year

IEA Sees Higher Oil Demand This Year

Global crude oil demand will…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Energy Markets Testing Some Big Investors

Plummeting oil prices have beaten down the share prices of energy companies across the board, with some going out of business while others are struggling to hang on.

With valuations of E&P companies a mere fraction of what they were from a year or two ago, big-time energy investors see a massive opening to scoop up investment positions on the cheap. The CEO of Avenue Capital Group, an investment firm focused on distressed securities, sees a “once-in-a-lifetime opportunity” in distressed energy companies. Related: UK Banking On Diesel To Maintain Energy Supply

Marc Lasry spoke at the Reuters Global Investment Outlook Summit in New York on November 17, where he discussed his firm’s big gamble on energy right now. “Either you will get paid off, or you will become the new equity of these companies, but you need the luxury of time. You need to be able to wait two or three or four years,” he said. Lasry’s Avenue Capital Group manages $13.2 billion in capital, and he recently raised money for a specialty fund investing in energy. “The whole market is oversold, and we're trying to take advantage,” he said.

But so far, the bet has not paid off. It seems every time that investors think the sector is turning a corner, the downturn persists and even deepens. Lasry admitted that his fund has lost money in the first few months since it was set up. But he sees the industry turning around in the coming years. Related:Elon Musk's Hyperloop: Expensive, But Doable

For other investors, the payoff is too risky and too far away. A hedge fund in Chicago recently announced that it was giving up, having been burned by energy investments. Achievement Asset Management, one of Chicago’s biggest hedge funds, has decided to return money to investors rather than continue to gamble on speculative energy debt. The fund, setup by former UBS executive Joseph Scoby, had over $2 billion under management in mid-2014, but that dropped to around $900 million recently. The hedge fund had gobbled up distressed energy debt, but oil prices have failed to rebound, leaving the firm with an array of losing positions. “Obviously, we did not make money in credit,” Scoby told The Wall Street Journal. He blamed increasingly illiquid market, which made it difficult to move in and out of positions.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News