Talos Energy Continues Momentum Despite Slumping Industry

Talos Energy is an independent gas and oil production company that is based out of Houston, TX. The company was established in 2012 by a trio of investors: Steve Heitzman, John Marker, and Timothy Duncan. When opening the company, their goal was to create an independent gas and oil energy company that could transcend borders while finding opportunities in both foreign and domestic markets. Their focus from the beginning was to make Talos Energy a prominent player on the Gulf Coast and inside of the Gulf of Mexico. After more than six years in the industry, Talos Energy is showing that they are resilient while continuing to grow in an otherwise slow industry. Recently, Talos Energy was awarded a prominent industry honor.

Just last year, Talos Energy was granted the ‘Discovery Of The Year’ award for 2017 during the WoodMac Award Ceremony. The award came to Talos Energy thanks to their work in the Gulf of Mexico where they not only managed to break barriers but also discover a hugely profitable well known as the Zama-1. Talos Energy became one of the first American companies to have access to Mexico’s oil and gas industry after Mexico had spent decades making that industry completely nationalized. The Zama-1 oil well is expected to become a hugely profitable source for Talos Energy and the other investors with production slated to be near 2 BILLION barrels of oil when all is said and done. Talos Energy holds 35% stock in the well, along with their partners Sierra Oil and Gas & Premier Oil.

While Talos Energy has been dominating headlines for their work on the Zama-1 discovery, they’ve also been busy in other areas of business. Late last year, Talos went on to acquire Stone Energy Corp, an under-the-radar move that opened up a vast portion of the Gulf of Mexico to the Houston, TX upstart. The acquisition would give Talos Energy an additional two areas in the Gulf of Mexico with a deepwater location in the United States and a shallow-water location in the Mexican Gulf. Tim Duncan states that the acquisition will give the company the resources that they need in order to continue exploring new opportunities.

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George Soros Shows No Confidence in Oil Stocks

Energy prices are volatile. Not long ago, oil was trading at around $150 a barrel. That had many drivers depressed while the Middle Eastern sheikhs and Russian tycoons were swimming in oceans of cash.
Then, the game has changed with shale oil producers in the United States adding to the supplies of the black gold. It seemed America was about to be set free from dependence on the Middle East when it came to energy supplies. That surely made Saudi Arabian oil bosses unhappy. So, they decided to continue to pump oil to take their competitors out of business by depressing prices.

This has led to an unprecedented drop in oil prices of more than $100. Now, oil trades around $30 a barrel. And a great transfer of wealth to the consumers is taking place. Meanwhile, investors are confused. Some industry analysts say there’s an opportunity to make gains on oil’s rebound. Others say it’s not the right time. At least, not yet.

As TheStreet.com reports, George Soros recently sold all the shares of Chevron, Chesapeake Energy, and NRG Energy. This is a vote of no confidence on this industry.

This move makes many investors reconsider acquiring shares in the oil industry even though many companies now seem to be attractively valued. But, Soros isn’t a newbie. The man knows what he’s doing most of the time. That’s not to say he’s always right, but rather that his investment performance is among the best results recorded in the history of investing.

As a finance guru and a speculator, George Soros made billions of dollars over the past few decades. His personal fortune is estimated by The Street to be around $25 billion. As a speculator, Soros became famous more than 20 years ago when he made a billion dollars on a bet that the British Pound will collapse.

Lately, Saudi Arabia teamed up with Russia, and now both countries want to freeze production. But Iran, a country of immense oil wealth, declined to join. After years of sanctions, the Iranians are hungry for hard currency. Now, as sanctions get lifted, Iranian oil will reach the markets, only adding to oversupply.

The outlook for the oil doesn’t look favorable. The World Bank predicts oil will average $37 a barrel this year. Its previous estimate was over $50. Another bad news for oil companies is that with the rise of more efficient electric vehicles, the demand for the black gold may get weaker.

Only time will show if this 86-year-old multi-billionaire is right again.