• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 32 mins *Happy Dance* ... U.S. Shale Oil Slowdown
  • 20 hours U.S. Treasury Secretary Mnuchin Weighs Lifting Tariffs On China
  • 12 hours Chevron to Boost Spend on Quick-Return Projects
  • 11 hours Socialists want to exorcise the O&G demon by 2030
  • 10 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 6 hours Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 2 hours Maritime Act of 2020 and pending carbon tax effects
  • 19 hours UK, Stay in EU, Says Tusk
  • 12 hours Conspiracy - Theory versus Reality
  • 1 day What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 19 hours Regular Gas dropped to $2.21 per gallon today
  • 1 day German Carmakers Warning: Hard Brexit Would Be "Fatal"
Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Private Equity Bets $2 Billion on This Commodity

There's a shuffling of investors going on, according to reports this week. In one particular market: natural gas.

On the way out of this market is major Canadian producer EnCana. Which is looking to offload dry gas assets as it whittles down its project portfolio to a more manageable size.

Local media noted this week that one of the first fields to go may be the Jonah project in Wyoming. A development producing about 323 million cubic feet of gas per day, with a only a small amount of associated liquids.

EnCana will reportedly seek somewhere around $2 billion to exit the field.

It's interesting to see this big player moving to leave a project like Jonah. Showing that large producers may be giving up on dryer gas production, and looking to focus ever more closely on liquids-rich plays.

The more interesting point of note on the potential sale here is the purported buyers. With reports suggesting the field may go to private equity groups including major global player Carlyle Group, along with NGP Energy.

If this does pan out, it would be a significant purchase in the natgas space for a player like Carlyle. Suggesting that managers here see significant potential in the commodity.

Even more so since a field like Jonah is basically a pure play on gas. A very contrarian bet right now, at a time when most E&Ps and investors in general are moving toward plays with significant amounts of oil or natural gas liquids like propane and butane.

We'll see if a billion-dollar deal actually emerges. If it does, it's a potentially significant sign of changing sentiment amongst large investors.

Here's to big bets,

By Dave Forest




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News