Why Energy Now?
Over the past 6 to 7 years the oil and gas industry has benefited from rising prices culminating at unprecedented levels in late 2008. This "Boom" in the industry was further enhanced by the availability of cheap and plentiful capital. The "Bust" cycle began in late 2008 with a precipitous drop in energy prices compounded by the global meltdown in the capital markets. Many producing companies found themselves in an environment of drastically lower revenue streams, lack of availability of new capital, and their existing lenders forcing repayment of extended loans. The consequence is a capital intensive industry in desperate need of capital. The result is accelerating bankruptcies, forced liquidations, and attractive properties being offered at distressed sale prices. This presents a fortuitous entry point for the astute investor or industry player with fresh capital available.