Wealthy family offices are increasingly investing in U.S. shale oil, providing crucial capital to drillers hoping to maintain their hold as the world’s largest oil producing country. Energy Practice Group Co-chair Jeff Nichols spoke to Bloomberg about the draw of the industry.
Read an excerpt below:
Shale operators are expected to source 12% of their total capital this year from family offices, up from 7% just a few years ago, according to law firm Haynes Boone. A survey of family offices published by KKR & Co. Inc. last year also noted increased appetite for oil and gas investments.
“The word’s getting out: There’s money in oil,” said Jeff Nichols, co-chair of the energy practice group at Haynes Boone. “A lot of the market really turned away from oil and gas and now it’s turning back, and family offices are at the leading edge of that wave back into oil and gas.”
