A recent survey showed nearly half of U.S. private equity investors are looking to invest in oil and gas
A new survey done by Reuters released this week shows that almost half of U.S. investors in private equity firms are planning on putting cash into oil and gas assets over the next three years in order to take advantage of the low price environment. About a third of investors worldwide said they would also being looking at the oil and gas industry, according to data from secondary market investor Coller Capital.
Low prices have fueled a rash of private equity deals in the oil and gas industry as buyers look to buy in low. Buyout funds totaled $31 billion in the oil and gas industry in 2014, more than three times as much as the $8 billion invested in the previous five years, according to Reuters’ data.
Among the international groups interested in putting money into the oil and gas arenas are Carlyle Group and CVC Capital Partners. The two plan to use around £3.3 billion ($5.08 billion) to back Neptune Oil and Gas, a new venture run by former Centrica CEO Sam Laidlaw.
Laidlaw said the two private equity partners shared his “enthusiasm to invest in building a new oil and gas company and create significant value for stakeholders at this pivotal time in the industry,” reports the Telegraph. Neptune will use the sizable funds from Carlyle and CVC to purchase assets in North Africa, South East Asia and the North Sea.
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