2022’s Impacts on Oil and Gas Investment Banking

Tim Kneen |

Oil and gas investment banking has always been a dynamic niche within financial planning. Ever-changing markets and the unique challenges of resource assets require a thorough understanding of how oil and gas fits into the big picture of your long-term goals. 2022 has been a particularly impactful year, and many of our clients are paying close attention to how their oil and gas investments are managed.

Fortunately, Private Wealth is up to the task. Led by Bryan Frazier, our head of energy asset management, we continue to provide value for our clients who have invested in oil and natural gas, or, have inherited these particular interests. Our services are tailored toward not just their day-to-day management, but their long-term strategies as well. These strategies protect and optimize oil and gas investment banking, even during eventful years like 2022.

Active Oil and Gas Management

The effective management of oil and gas investments requires specialized knowledge. Unlike stocks and bonds, natural resource assets represent tangible goods. Translating these goods into sustainable capital should consider active income and tax strategies as well as passive monitoring and reviews for potential opportunity.

As demand continues to fall below pre-pandemic levels, our oil and gas experts can help ensure available revenue growth is secured. For example, we’re proactive in exploring interest in leasing your resource assets or finding ways to optimize these assets by participating in drilling programs, and we always perform our due diligence with who we do business with.

Minimizing Risks with Inspections and Annual Reviews

Reviewing environmental risks and mitigation

  • We collaborate with our real estate partners at Private Wealth to review/mitigate any aboveground environmental risks, which have a direct impact on the production of your mineral interests.

Oil and gas investment banking is often tied to global prices, which change frequently and sometimes by a significant margin in a short amount of time. What’s more, these assets are subject to environmental concerns, many of which are buried within a litany of complex legal elements. Private Wealth considers both the broad strokes and minutiae when helping clients with their oil and gas business planning.

By reviewing environmental risks and mitigation strategies, we can minimize any direct negative impact on your natural resource assets or investments. We work closely with our real estate partners to confirm if activities surrounding your oil and gas assets could influence their productivity.

Monitoring Trends and Current Events

The prices of oil and natural gas have steadily recovered over the last few years but are experiencing recent volatility as a result of Russia’s invasion of Ukraine. This incident has had cascading effects not just on oil and gas investments but on the entire global economy. Private Wealth advisors are carefully watching as the situation unfolds, helping our clients avoid such volatility.

This may also result in a larger shift toward advancements in battery technology, electric vehicles and similar technology. Such changes could further alter the oil and gas investment banking landscape. As part of our commitment to long-term strategies, we monitor changing demographics and market trends to optimize your energy asset portfolio. While oil and gas investment banking has received significant attention these last few months, Private Wealth is always looking far into the future to ensure your continued success.