Energy Sector Has Undergone 'Tectonic Change': CEO
The energy industry has undergone a “tectonic change,” as advancements in drilling techniques and technologies have allowed companies to tap reservoirs that were previously inaccessible, Will VanLoh, president and CEO of Quantum Energy Partners, which provides private equity capital to the global energy industry, told CNBC Wednesday.
The advancements in horizontal drilling and hydraulic fracturing has enabled reservoirs to unlock, VanLoh explained. Quantum Energy Partners has more than $6.5 billion in equity under management.
"We knew there were hydrocarbons there, but it really was not possible to get those hydrocarbons to produce an economic quantities," he said. “We believe we’re probably in the first or second inning of a real renaissance in the oil industry.”
“The industry has really shifted from a focus on shale gas to really a focus on shale oil and tight oil," VonLoh said. "The number of rigs running in the U.S. focused on oil, just literally in the last couple of years alone, has gone from about 250 rigs to well north of about 1,250 rigs — almost a 500 percent increase."
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