New Global Venture in the Energy Sector

Business mogul and oil executive Miguel Galuccio is teaming up with Riverstone Holdings Ltd., the largest private energy focused equity firm, to attract and work with other large investors and sovereign-wealth funds to take advantage of opportunities in energy investments on a global scale

Riverstone Holdings is already involved in the rapidly growing energy market in Mexico.

Pierre Lapeyre and David Leuschen, the men behind Riverstone Holdings Ltd., have amassed more than 34 Billion dollars in the last decade and a half to provide growth investment in several power and energy corporations including nine private funds. Miguel Galuccio has returned to Schlumberger Ltd., where he once employed, to serve as a member of the board. Schlumberger LTD. is excited to have his 20- plus years of experience that touches all five continents. 134

Mexico is moving strongly in the field of energy reform. Pemex, also known as Petroleos Mexicanos, has relinquished their almost total control of the energy market they’ve had for the last 75 years allowing for gas and oil reserves to use new technological advances from around the world that will better develop the capabilities to bring more oil and gas at a cheaper price.

Galuccio is familiar with doing business in south America having been the chief executive for YPF SA in Argentina. There he made great strides in refining the entire process of getting oil from shale and then out to the market. He did this by closely and personally working with the Dow Chemical Corp., the Chevron Corp. and also with Petroliam Nasional Bhd.

Galuccio’s 13 years working at Schlumberger resulted in a new and successful overall production model that combined customer rates with the increase in the company’s production. To facilitate investment from the private sector, he created a different type of service incentive contracts known by the acronym CIEP

The Mexican government took a huge leap forward in this new global venture in the energy market with an extremely successful auction for rights to deep water oil that had the Chevron Corp. and the Exxon Mobil Corp. as big winners.

The goal for Mexico is to have this act as a springboard to get more outside investors from every continent to fund the growth and development of oil and gas reserves all throughout Latin America.

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Apr
25

Giving Hope Through Urban Real Estate Development to New York City Neighborhoods

Urban renewal generally referred to as revitalization of land in different areas of moderate to high-density urban land use. Over the year’s urban renewal has become based on more renovation and investment than on destruction.

New York City’s landscape is now becoming a-thing-of-the-past with deteriorating and dilapidated buildings and landscapes in many neighborhoods. Joe Sitt, an investor in real estate, the founder of Ashley Stewart, a retail chain, Town Residential, a brokerage firm in Manhattan, and Thor Equities, has invested in the cause for renewing the irreparable urban squalor that was once the neighborhood.

The Center for Urban Real Estate is the moving force behind this rejuvenation and they now have numerous amounts of builders and banks to help with the projects. Goldman Sachs’ Urban Investment Group has invested $26 million for the renovation of Golden Heights.

Cook and Fox Architects along with the Durst Organization have completed a project of a Front Street landmark that now looks like it will become a tourist mecca once again.

The Carnegie Corporation, the Center for Urban Real Estate and a Columbia University professor and real estate development expert have been instrumental in revitalizing Lower Manhattan.

Many well-known celebrities have been involved in the urban real estate development program in their own homes and their former neighborhoods. People like Tyra Banks, Jon Bon Jovi, Gwyneth Paltrow, Madonna, Brooke Shields, Harrison Ford, and news anchorman Anderson Cooper have renovated their own dwellings, spending their own money to help set a precedence for the future neighborhoods.

In the heart of New York, between 10th and 12th Avenues from West 30th to West 34th, you will find Hudson Yards. For decades Hudson Yards was isolated by a massive open rail yard but is now being turned into a convenient neighborhood which with the introduction of the new mass transit will become the center of the metropolitan region. This will be a place for communications and art as well as a hub for fashion, and design. Hudson Yards is now the home of Google and other digital media and technology firms.

New York had a choice and they made an investment in the renewal of run-down neighborhoods that is paying for itself. Now there are new places to live and work, have a better life and has engendered hope for these neighborhoods that had long ago lost hope. Now they have a new and improved neighborhood in which to live and grow.

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Feb
14

Why Fracking Is Actually A Good Thing

What Is Fracking?
Hydraulic fracking is the process of drilling into shale to find oil. For over 65 years various companies have used fracking to tap into vital sources of oil. Currently, many companies are interested in increasing the amount of fracking that occurs in the United States. With fracking America can finally achieve energy independence, but there are far more reasons to support it beyond that. Fracking can bring jobs to America and reduce the cost of gas you see at the pump.

How Will Fracking Help America?
Energy independence is an important but under discussed topic. Today, we receive far too much of our oil from foreign sources such as Saudi Arabia. This leaves us open to various dangers if politics or international relations fails to go the exact way we need them to. For instance, if a war breaks out or something prevents these foreign suppliers from meeting demands, we are simply out of luck. Fracking on American grounds prevents all of these dangers from occurring. We can finally free ourselves from our dependence on our relationship with other countries in a way that benefits all Americans.

Will Our Economy Improve?
Fracking is almost certain to bring jobs to America. Obviously, the fracking requires workers to man the drilling equipment and drivers to deliver the oil. Beyond that direct improvement to our job market fracking will reduce the price of gas and the price of goods will decrease with it. That means even if your job is not directly tied to the oil industry you will still benefit on some level from fracking. There are plenty of critics out there that will tell you fracking is harmful to America, but the benefits are clearly there.

Who Should I Believe On This Issue?
You’ve probably already heard the frequent criticisms laid against fracking, but there’s clearly much more than critics want to discuss. Fracking gives America a chance to make itself more independent, more prosperous, and more efficient. The energy reserves we can tap into from hydraulic fracking are greater than anything we could possibly expect from other countries. Fracking makes our country stronger and gives us the opportunity to steer the direction of our future. If fracking can finally take off, the American oil industry may soon turn into the largest oil industry in the entire world.

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Jan
25

Sustainable Real Estate Development

The idea of “going green” has infiltrated many aspects of our society today, from simple recycling efforts to buying products manufactured in an environmentally conscious way. Now, the trend is moving into our homes — literally.

Eco-homes and products, solar panels and green home certifications are becoming commonplace in new home development. High-efficiency heating and cooling, green label flooring, water-saving systems and landscapes are quickly rising on the list of home improvements that can add value to a home.

According to the Union of Concerned Scientists, roughly 400,000 homes had rooftop solar panels in 2013 and that number is expected to more than double by 2020, topping 900,000 by that time.

Many organizations offer green home certifications that can also add value to a home. Some certifications focus on energy efficiency while others examine where building materials came from and the amount of waste generated during construction.

The D.C. Department of Energy and Environment, along with the Institute for Market Transformation, conducted a study that analyzed whether environmentally conscious features and improvements raised the market value of the homes. Appraisers compared homes with energy-conserving features with similar types of homes without the “green improvements.” They found that buyers were willing to pay between 3 percent and 7 percent premiums on the sustainable homes.

On the west coast, the University of California Berkeley and UCLA conducted a study of 1.6 million home sales between 2007 to 2012. These organizations found that green certifications such as  Energy Star increased home sale prices by an average of 9 percent.

About 66,000 San Antonio home sales were analyzed for energy efficiency, which included  improvements such as high-efficiency HVAC systems and dual-pane windows. This study found that these energy efficient homes sold for nearly 6 percent more compared to other homes in the area without such features.

In fact, Real Estate Professionals like Than Merrill, who buy and sell fixer upper homes for a living has seen this trend firsthand, especially with younger home buyers. “Sustainable upgrades can maximize earnings potential.” says Merrill. “The interest Millennials have shown in sustainable homes should be all the evidence a person needs to adopt these practices. Seeing as how Millennials represent the largest share of recent buyers, it only makes sense to adapt your investing strategy to meet their needs.”

Although “green improvements” like high-efficiency appliances and heating and cooling systems have been around for some time, new environmentally sustainable options such as “green building materials” and certifications will become more popular. It is likely that these and additional environmentally sustainable options will increase the value of homes across the country.

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Oct
14

Producing energy from fracking

Fracking stands for hydraulic fracturing and has been used for over 65 years. Hydraulic fracturing is a process that is used to drill down into the earth. Once the whole has been drilled down, a pressurized water mixture is shot down into the rocks to release the gas that is inside. What is fracking water made of? It includes water, sand and other chemicals. Using a high pressurized mixture is able to help reduce friction and prevents the pipes from corroding. This method helps to protect the environment and helps to boost well efficiency. The fracking process can be done vertically, but it is more commonly done horizontally. Drilling horizontally into the rock layer is able to create new paths that help release gas. While many people think that fracking is a bad thing, there are actually many benefits that can be gained from this type of drilling.

Over the years, fracking has started to use a combination of advanced hydraulic fracturing and horizontal drillings. Choosing to use these cutting-edge technologies has made it possible for the U.S. oil and natural gas production to soar.

Gain Access to More Oil and Gas
Fracking has also created a way to tap into vast oil and natural gas reserves that were previously blocked by tight rock formations. It is estimated that in the future, over 90% of natural gas wells will be using this hydraulic fracturing method. With higher amounts of gas being accessed, the price of gas has been able to get cheaper and cheaper. This is due to the fact that there is an abundance of it all around the world. The vast amount of gas means that we have created a longer period of time to find a better and more effective way to power our cars, heat our homes and cook our foods.

No Longer have to Rely on Foreign Countries
There has always been a lack of fossil fuels. That coupled with the fact that they are not scattered evenly around the world has created a large amount of tension in many countries around the world. But having access to many new gas deposits means that we no longer have to depend on other countries for our oil and gas.

Employment Opportunities
The increase in production also has a positive effect on the employment rates. Since fracking is able to access numerous oil and natural gas deposits the number of employed people will actually rise. With the increase in fracking technology, there has been a 67% increase in the employment rate.

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Sep
01

The Purchase of Rock Oil Holdings’ by SM Energy Company

SM Energy Company, a Denver-based oil and gas company, recently acquired Rock Oil Holdings LLC, a Houston and Denver-based oil and gas company focused on the Permian Basin, for $980 million. Rock Oil Holdings was sold by Riverstone Global Energy and Power Fund V.L.P. and their minority partners. Riverstone Holdings LLC made the news public after signing a definitive agreement pursuant to the acquisition of Rock Oil Holdings LLC by SM Energy Company. Subject to customary closing conditions, the transaction is anticipated for closure in early October.
By applying its land and technical expertise, Rock Oil Holdings was formed in March 2014 for the acquisition and advancement of top-tier North American unconventional plays. Over the years, the company has executed a number of acquisitions which positions it over 24,783 net acres in Permian’s Midland Basin Component.
The company is led by two very exceptional leaders who have had past experiences in the exploration and production companies. Kyle R. Miller, the Chief Executive Officer of Rock Oil, has had years’ worth of experience in the industry and the president, Jason Cansler, has had fifteen years’ worth of experience with Wells Fargo and Chevron. The company’s CEO mentions his pride in the company’s commendable achievement in establishing its presence in the core of the leading production basin in North America. Rock Oil Holdings continues to overcome despite the challenging commodity price environment due to the innovativeness of the Rock Oil Team and the symbiotic relationship with Riverstone Holdings LLC.
A partner and Managing Director at Riverstone stated that the relationship between their company and Rock Oil Holdings was very beneficial and commends on Kyle Miller and Jason Cansler’s impressive leadership abilities. He mentions that the company’s success was facilitated by its wealth and technical expertise in assembling top acreage in Howard Country. All these and many other factors go a long way to show how promising it is for the future of SM Energy Company. The transaction went through with Jefferies serving as the financial advisor of Rock Oil and Riverstone Holdings LLC. Other financial advisors who played a role in the transaction include Petrie Partners and Latham & Watkins LLP.
The company was founded by David M. Leuschen and Pierre F. Lapeyre, Jr. in 2000. It is an energy and power-focused privately owned firm, with over $34 billion in capital raised for the efforts of this venture, the company carries outgrowth capital investments and buyout in oilfield services, exploration and production, midstream, power and renewable sectors of the energy industry.

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Aug
10

Cenergistic: The Energy Stars

These days, people are more conscious of the amount of energy they use than ever before. One major way to conserve energy is to buy appliances, computer equipment, entertainment electronics, building support machinery such as HVAC systems, and many other electrically powered products that are certified to use less electricity. That certification is often labeled with a small ENERGY STAR label affixed to each device that complies with the lower energy consumption standards. Cenergistic, based in Dallas, Texas, is a major contributor to the ENERGY STAR approach to reduce energy consumption of all types, especially in buildings infrastructures.

In the past they have helped universities, schools, health care organizations, and churches to reinvest money, saved through energy conservation, back into the lives of their clients. Cenergistic has received numerous awards for the many successes they have achieved, including the ENERGY STAR Partner of the Year Sustained Excellence award for helping thousands of their client’s buildings substantially reduce energy consumption. Cenergistic custom designs programs for each client without requiring them to install new equipment and with minimal extra effort by their workers. Cenergistic’s past accomplishments include:

  • Working with clients to reduce energy costs by more than 3 billion dollars over the last 25 years
  • Over 4,500 client buildings achieving ENERGY STAR certifications, since the year 2000
  • Promoted ENERGY STAR to millions of students in their clients’ many diverse locations

They take a whole-systems view, helping their clients optimize their internal processes, change some basic infrastructure, and implement behavior changes to achieve optimum energy savings and to maintain that level of reduced consumption. Besides all this, Cenergistic provides these CORE benefits:

  • Saving capital by reducing or eliminating new capital expenditures
  • Reducing costs of Operations and Maintenance by reducing labor costs and the cost of replacing consumables
  • Since the clients do not have to do capital investments, Cenergistic assumes all the risk
  • Helping the environment by conserving natural resources

Cenergistic helps all kinds of organizations reduce the amount of electricity, water, natural gas, and fuel oil their products and services consume. For nearly 30 years they have operated with a data-driven approach, using high technology tools and solutions to help clients with a single building or many buildings in multiple locations, in all regions with all types of climates.

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Aug
17

Riverstone Will Raise Funds For New Energy Vehicles

Riverstone Holdings is setting up an energy debt fund to help combat the recent drop in oil prices. In fact, oil prices have dropped so much that the energy markets have completely closed up to new ventures. There is no way for people to confidently invest in new energy ventures unless those ventures are in new energy.

Riverstone Holdings has chosen to raise up to $7.5 billion to see if they can move the markets in a better direction. The fear of lowering oil prices is causing many energy companies to wonder if they need to move to renewable energy now before it is too late. There are oil fields closing or reducing their operations all over the world due to this drop in prices, and this could lead the world to renewable energy faster than expected.

As Riverstone looks to raise all this money, they are intent on making certain that they have options outside of watching their resources dry up with the lowest oil pries that we have seen in decades. Riverstone hopes to guide its partners in ways that will help all of them to improve their position in the market. There are many companies that must make changes if they want to survive this downturn in oil prices.

This is the first big initiative from a major energy company, and it will likely not be the last. There are many ways for companies to recover from these low prices. Everyone knows that the oil prices will trend upward again, but no one can guarantee that they will ever be as high as they once were. Energy companies are going to have to change their ways if they want to become solvent for many years to come.

When Riverstone Holdings takes in this credit, they will be able to help stabilize the energy markets. The energy markets are fluctuating every day, and this assistance will change the way that people approach the business of energy. New energy and renewable energy are going to become the new standards, but first credits like these must go through to assist faltering companies.

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Jan
26

Steps to Increase Energy Efficiency

In this world we have certain natural resources that we must use in our daily lives. Energy is something that we use every day. This energy can come from coal, natural gas, solar, wind, or nuclear resources. It is important that we are energy efficient in our daily lives. This will help us save on energy costs that may otherwise cut deeply into our budgets. Not only will this help individuals in their own personal lives, but as a whole will all be doing a great part to help the environment.

There are many different ways in which individuals, businesses, and organizations can help cut down on their energy costs. One of the most common types of energy conservation begins with lighting fixtures. If you are unnecessarily leaving lighting fixtures on in your business, home, or school, you will find that your energy costs will be much more that if you were turning your lights off whenever possible. This is especially true for businesses and schools. Where there are many lights, you must make sure that these lights are not accidentally left on overnight. This will greatly raise the costs of your energy bill.

When you are looking at your energy costs, you will find that your heating and cooling make up a big portion of this cost. When you are looking for ways to cut down on your energy costs, cutting down on your heating and cooling can be a great way to cut down on these costs. There are many natural ways to cool and heat your home. Using these natural ways will keep you from having to use your heater and AC as often. During the warm summer months, take advantage of cool breezes and open your windows. This can naturally cool off your home or business. This is true as well for bright shining light that can radiate heat through windows during the colder months. Open your blinds to allow for the sun to heat up your home during the colder months.

There are many more great ways in which you can cut down on energy costs, but these are a few easy ones that you can take into action to help save on your energy bills. Working with an energy conservation company like Cenergistic can help you save on energy costs in your home, school or office. In any case, raising awareness and understanding your own personal energy usage is a smart first step.

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Oct
20

Efficient Drilling Techniques Drive Production Increases in the U.S.

The United States runs on oil. Oil is used in so many applications that life without it would be nearly unrecognizable. Gasoline amounts for nearly 2/3 of all oil consumption in the United States. With this in mind, it is unsurprising that for years the United States has been dependent on foreign oil. This reliance has left the United States incapable of effectively regulating gas prices, and has been an ongoing source of frustration.

This could all change, however, with the help of an innovative drilling technique known as horizontal drilling. Horizontal drilling has not only steadily increased drilling efficiency, but has improved the yield of existing basins. As the name implies, horizontal drilling allows operators to drill horizontally rather than vertically through rock formations. This ensures amplified rock contact and, unsurprisingly, serves to maximize returns from wells.

Furthermore, horizontal drilling reduces environmental impact, as multiple vertical wells can be replaced by a single horizontal well. A reduction in the number of wells being drilled means fewer emissions, less water use, and reduced damage to the land itself. The importance of this more eco-friendly approach to drilling is two-fold. In addition to the immediate benefits to the environment, this technique is also partially responsible for lowering greenhouse gas emissions in the United States.

The second process that has revolutionized oil production in the United States is hydraulic fracturing, also known as ‘fracking’. Hydraulic fracturing is used to stimulate a new or existing well in order to increase production. This process is completed using pressurized fluid. The fluid is generally composed of a mixture of chemicals, sand and water. When injected into a wellbore, this fluid creates cracks in the rock, or in some cases expands existing cracks. These fissures allow oil to flow more freely and increase well productivity exponentially.

These innovative techniques have vastly increased production of oil in the United States. The methods previously used to drill for oil were much less effective. The combination of horizontal drilling and hydraulic fracturing has increased both productivity and efficiency. If this level of production continues, the United States could find themselves independent from foreign oil companies. Increased production would also allow the United States to influence and stabilize the global market.

Energy companies like Cunningham Energy are at the forefront of this revolution. As an independent explorer and producer of oil and gas, Cunningham Energy is dedicated to acquiring and producing oil in the most effective and efficient manner. In order to meet this standard of productivity, they use both hydraulic fracturing and horizontal drilling in the exploration, acquisition and production of oil and natural gas.

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Oct
10