L.E.K. Consulting's Industrials practice continually monitors industry trends and identifies attractive opportunities for private equity and corporate investors.
A confluence of factors, including rising global demand and recently announced production cutbacks by OPEC, is expected to provide a tailwind for the currently rebounding oil and gas industry. Should that forecast hold, sidelined corporate and private equity investors will want to ready themselves to get back in the game. Consider the following:
- OPEC cutbacks have helped tilt the expected supply/demand balance back in favor of modest price growth
- North American E&P activity continues to trend upward despite lower short-term per-barrel pricing
- Ongoing production innovation/efficiency has allowed current players to become more capital efficient
- Possible pro-energy moves by the Trump administration could have a positive impact on the industry
In this Investment Spotlight, we explain how the market’s current pace of recovery points to potentially attractive growth opportunities for well-positioned companies.