We invest in and grow companies that are leading providers of products and services related to the operation, maintenance and installation of energy assets and other critical infrastructure.
Our companies’ offerings address critical customer needs such as improving their efficiency and productivity, gaining access to needed skills and expertise, enhancing environmental compliance, and facilitating a safe work environment for their employees.
We are focused on the broad spectrum of critical, with particular interest and expertise in the following sectors:
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Advancements in horizontal drilling and frac’ing techniques are driving widespread development of domestic, non-conventional oil and gas reserves.
In recent years the U.S. oil and gas production market has transitioned from a trend of slow, long-term decline to become the second largest producer of oil and gas in the world. Despite recent commodity price pressures, we are bullish on the long-term growth prospects for domestic oil and gas producers. As a result of expected long-term growth in domestic oil and gas production, the need for oilfield services and equipment is expected to continue to increase in many geographic regions, ranging from the Marcellus and Utica shale regions in the northeast, to the Bakken shale in North Dakota, to many active basins in west and south Texas.
We are focused on companies that provide equipment and services that make the development and production of oil or gas more economic and efficient or that reduce environmental impact and improve workplace safety. These companies are well-positioned to benefit from long-term growth in domestic production and the continuing reliance by operators on high-quality service providers. While recent commodity price fluctuations have had a significant near-term impact on the industry, we believe that the battle-tested companies that emerge from this cycle will be attractive to oil and gas operators who will be seeking to partner with the strongest and most efficient service and equipment providers as production growth resumes.
The recent boom in domestic shale oil and gas production, as well as the advanced age of pipeline infrastructure, creates the need for significant development, refurbishment, maintenance, and testing of oil and gas transportation and storage infrastructure.
As domestic oil and gas production continues to grow, U.S operators are aggressively seeking new outlets for their product. This activity is driving demand for increased domestic storage and a greater focus on international outlets for oil and LNG. As a result, our nation’s oil and gas transportation and storage infrastructure is coming under increased capacity stress. As new energy production centers emerge and the U.S.’s role in the global energy market continues to grow, the midstream transportation market must also change in order to meet new market requirements. Despite political challenges, major new interstate pipeline projects are in the works, along with miles of gathering systems to supply them. At the same time, the burgeoning development of new oil and gas transportation infrastructure, often in and around major population centers, is coming under increasing scrutiny for safety and environmental impact.
We are focused on the companies that provide services and equipment to midstream operators. These companies are positioned to benefit from long-term growth in our nation’s energy transportation and storage infrastructure, as well as greater safety and environment standards which create demand for additional services and equipment. Companies operating in this sector also benefit from the steady, predictable nature of the midstream demand.
Retirements of coal fired electric generation, aging infrastructure, grid modernization initiatives, and a wave of impending retirements by utility personnel are all causing a renewed focus on electric transmission and distribution assets.
Distributed and renewable generation, load shifting and advances in grid communication and monitoring, are all placing greater demands on electric transmission and distribution networks. After decades of spending on power generation assets, utilities are turning their attention and capital to the aging transmission and distribution infrastructure. As our nation’s electric grid becomes more dynamic and the threat of cyber-attacks increases, utilities are re-focused on reliability initiatives related to the grid. Overlaying all of these trends is an aging engineering and utility workforce, resulting in a drain of institutional knowledge from the largest energy companies.
We are focused on companies providing products or services that help improve electric reliability and security, that facilitate the development of new transmission infrastructure, and that help offset the loss of talent and expertise as key components of the utility workforce reach retirement age.