New Financial Model for Investing in Energy
Due to the massive scale of the North American Energy Revolution, vast manufacturing reserves of horizontal wells and unvaried exploration of all oil and gas plays, Wall Street investors are eager for a business model that will provide growth in this volatile market.
However it may be troublesome for many large oil corporations to profit on the Shale Revolution, But with extremely inventive ways, a savvy investor can capitalize by looking at “Lean Organizations”.
Large oil corporations are usually swamped with too much inventory or too many lease acquisitions in their portfolios. They typically profit on dividends and expect an increase. However since the price of Oil dipped below $60 a barrel, savvy investors have focused on small independent oil corporations, specifically terribly aggressive ones, have recently run circles around the big boys.
Some visionary leaders have shifted their focus to capitalize on property’s that produce higher returns. The ‘Concept Confirming’ stage, as it’s called, is a collection of deliberate rules, such as value management, unified preparation and alot on a company’s culture.
Like the exploring stage, the Concept Confirming stage relies on creative thinking and the ability to move from one field trend to the next with relative ease. Some corporations have proceeded with double headache of high debt and low value. It is worth considering which companies have been too careful in shopping for the assets and have lost focused on the output model.
Lean and Mean could be the new business model for years to come, and just like JP Getty’s Formula for success: rise early, work hard, strike oil.
Aschere Energy follows a disciplined value-focused strategy designed to capitalize on the unique characteristics of the energy industry and the complementary expertise of our industry partners. This relationship with energy experts allows access to research and other technical expertise not usually provided to the general public.