[Editor's note: A version of this story appears in Capital Formation 2021, a supplement to the May 2021 issue of Oil and Gas Investor magazine.]

With a timeline for a global economic recovery yet unclear, the E&P sector’s road to recovery remains challenged. Even before the global pandemic caused a historic disruption, shale gas players were in trouble—capex reductions had already been implemented to survive the last downturn, breakeven margins were dangerously thin and, ultimately, the buy-and-flip model found itself redundant in an unpredictable global pandemic.

If that wasn’t enough, an increasing environmental, social and governance (ESG) focus and global carbon emissions concerns have limited traditional and institutional sources of capital.

But despite the challenging environment, private equity investors are focusing on new models and finding untapped opportunities in a new ESG-focused environment.

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