Sunday, March 22, 2015

U.S. Billionaires Target Global Oil

Financial Review (Australia) reported Carlyle Group and Blackstone have billions to invest in global energy assets: 

"The North Sea is uninvestable, a no-go area," an anonymous investment banker said. "Anybody who has a mature position is desperately trying to get out. But it is extremely difficult to get out."

That means cheap prices for those wanting to get in, like Carlyle and Blackstone.  The United Kingdom made it easier for private equity underwriters by "slashing taxes on industry profits and introducing a new investment allowance to boost exploration."

Sixty per cent of Carlyle's fund was likely to be invested in producing fields, much of them offshore, with a substantial portion in the UK North Sea, said people familiar with the plans.

That's the PEU way.  One the way in they prefer to buy cheap, pay interest-not taxes, and get direct public subsidies.  They also thing long term.  Might Carlyle's North Sea oil production be shipped through an open Arctic, another area where Rubenstein likes to play and invest?

Update 3-24-15:  Carlyle's Rubenstein told CNBC oil and energy are the place to be.