Live from NAPE 2026, we’re joined by Michael Tanner to discuss the shift in capital allocation within the oil and gas sector. As more family offices and real estate investors enter the space, understanding the "decline curve" has never been more critical.
1. The NAPE (North American Prospect Expo) Conference
The discussion around this major annual oil and gas industry event is a critical venue for deal-making and networking. They note that this year's NAPE is the largest in 3 years, signaling industry recovery. The conference has evolved from being primarily deal-focused to more networking-oriented, though deal-making is making a comeback. Strategic networking and happy hours are highlighted as key opportunities for gaining insights and making valuable connections.
2. AI in the Oil and Gas Industry
AI is identified as an emerging focus area for the industry. The speakers suggest that some companies are quietly leveraging AI to gain competitive advantages without publicly discussing their strategies, indicating a trend toward using AI as a competitive differentiator.
3. Business Prospects and Investment Strategy
Michael and Rey discuss their specific oil and gas prospect work in King County, focusing on vertical wells rather than horizontal shale plays. Their investment philosophy prioritizes consistent, lower-decline production over high-initial production with steeper decline rates—a strategy that contrasts with larger oil companies' approaches.
4. Investor Education and Transparency
A significant emphasis is placed on educating investors, particularly newcomers to the oil and gas sector, about production decline curves and the fundamental differences between oil and gas investments and other asset classes like real estate. This reflects the importance of setting realistic expectations.
5. Industry Recovery and Market Trends
The podcast reflects broader themes about the oil and gas industry's recovery and the current market conditions that are driving renewed activity and investment.
Follow Rey on his LinkedIn: https://www.linkedin.com/in/reytrevinoiii/
Also, Pecos Operating Website: https://pecosoperating.com/
Also, the great Production team at Real News Public Relations
#OilAndGasInvesting #FamilyOffice #EnergyStrategy #NAPE #VerticalDrilling #capitalmarkets
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