Despite low oil and gas prices, there's long-term investment opportunity in energy

Brian Thomas, managing director at Prudential Capital Group's Energy Finance Group - Oil & Gas, believes the ongoing drilling and infrastructure capital needs of North American oil and gas companies will continue to create attractive investment opportunities, even though much of the industry is currently challenged with low oil and gas prices.

One of the key opportunities Thomas sees is in pipeline infrastructure. Technological improvements and industry innovation helped fuel record-high oil and natural gas production in 2014. The ongoing capital investment needed to support the production and distribution of conventional energy in North America remains sizable and will continue to create attractive long-term investment opportunities.

"Increasing oil and gas production, much of it in new regions, has created a backlog of pipeline infrastructure needed in support of transmission, storage and distribution," says Thomas. "In our view, successful investing within the oil and gas infrastructure requires insight into long-term trends and an approach that anticipates and accommodates inevitable short-term cycles."

The industry is also shifting its focus toward maximizing operating efficiencies, which will allow energy producers to operate profitably at lower prices. "Cycles are inevitable," Thomas says. "But in the end, the industry emerges stronger, and domestic market consumers of energy benefit through the stability of supply delivered at a lower cost."

Interested in learning more about the oil and gas industry or want to speak with Brian? Contact John Chartier.

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