Latest news with #QuantumCapital
Yahoo
4 days ago
- Business
- Yahoo
Cratering oil prices in 2025 are 'dangerously close' to being unprofitable for producers, top investor says
Oil prices have been volatile in 2025 as economic uncertainty and trade tensions have weighed on sentiment. Dwight Scott of Quantum Capital said that prices are nearing a dangerously low level for producers. He added, though, that he doesn't think this difficult period will last for the oil industry. Oil prices have been volatile this year, and they've cratered into a dangerous zone that threatens profitability for producers, a top energy investor said this week. Dwight Scott, executive vice chairman of Quantum Capital Group, told Bloomberg TV this week that at the rate prices are going, they are "dangerously close" to no longer being profitable for producers. US crude prices are down about 8% this year, trading at $66.68 Thursday morning. "In the mid-$60s, you get dangerously close to where oil prices don't really drive appropriate returns for new drilling," he said, adding that the industry's rig count has been off for the past two months, referring to the number of active drilling rigs in one area. In the interview on Wednesday, Scott addressed the oil industry's supply and demand dynamics, laying out what he sees for the future of the industry. President Donald Trump's election was seen as a bullish indicator for the oil and gas sector early in the year but so far, prices have been subject to volatility amid economic uncertainty and high global supply. Scott added that Trump's drill baby drill" mantra has mostly been moot, as the industry in the US has already been pumping record amounts of crude in recent years. That's part of the reason US producers have been hesitant to keep flooding the market with oil, as even more supply could further depress prices. Scott said that he believes that the streak of declines is related to uncertainty surrounding President Trump's tariffs. He added, though, that he believes the slump should be temporary, predicting that the US will continue to be a top energy producer. Read the original article on Business Insider
ABC News
6 days ago
- Business
- ABC News
Blue Float Energy abandons $10 billion Gippsland Dawn offshore wind proposal
The developer of a proposed $10 billion Victorian offshore wind farm has abandoned the project, prompting fears Australia may not reach its renewable energy targets. Gippsland Dawn was to be a 2-gigawatt offshore wind farm built between Paradise Beach and Ocean Grange on the Gippsland coast. The proposal received major project status from the federal government in November, and promised to deliver power to more than one million homes. But the company behind the project, Blue Float Energy, withdrew from offshore wind internationally after major shareholder Quantum Capital said it was no longer commercially viable to invest in the sector. The decision also impacts a planned offshore wind farm in the Illawarra region. The exit comes at a time of volatility in the energy market. The Victorian government will hold an auction in September to determine which renewable energy projects get built first. Bruce Mountain, director of Victoria University's Victoria Energy Policy Centre, said the fact an operator was pulling out without trying to sell their assets was a sign that things were off track. "It is surprising that [Blue Float] did not manage to find someone else to buy their operations, so that indicates [there is] not a huge amount of interest from others in taking over the options," Professor Mountain said. "I think it will impact others … and others that are not in a strong position will be weakened by this." The Victorian government has a renewable energy target of 40 per cent this year, increasing to 95 per cent by 2035. That includes at least 2 gigawatts from offshore wind by 2032. Nationally, Australia has a target of achieving 82 per cent renewable energy by 2030. Professor Mountain said there was real doubt over whether those targets would now be achieved. "We're not on target in Victoria and we're not on target nationally at all," he said. Professor Mountain said significant delays between policy announcements, community consultation and construction meant the current market was no longer commercially appealing for operators. "There has been a surge in offshore wind development costs globally and those costs have not yet come down," he said. "The economics of offshore wind now is much weaker than was thought to be, say three to four years ago." Electrical Trades Union (ETU) national secretary Michael Wright has called on the government to clear a "bottleneck" of energy project approvals. Jobs and Skills Australia estimates the country will require two million workers in building and engineering trades by 2050, to prepare Australia's energy grid and industrial base for net zero carbon emissions, including up to 84,000 additional electricians. "What I have a concern about is, are we going to have an industry that can support training up the thousands or tens of thousands of electrical workers that we need to build this out?" Mr Wright said. A spokesperson for the federal Department of Climate Change, Energy, the Environment and Water said it recognised that offshore wind developers were facing global challenges relating to costs and uncertainty, but that a "high level of investment interest" in the Australian industry remained. The federal government believes it is on track to meet its 2030 emissions reduction target. A spokesperson from the Victorian Department of Energy, Environment and Climate Action said the Commonwealth had approved offshore wind projects for feasibility licences in Gippsland that could generate 23 gigawatts of electricity — more than enough to meet Victoria's energy needs.
Bloomberg
05-06-2025
- Business
- Bloomberg
Trump Is Creating ‘Chaos' for US Energy, Quantum Founder VanLoh Says
By Wil VanLoh, the founder of one of the biggest private equity backers of shale drillers, said he's concerned President Donald Trump's administration is creating 'a lot of chaos' both for the US energy industry and the overall economy that could in turn lead to more inflation. VanLoh, chief executive officer of Quantum Capital Group, cited recent unease in the market for ethane, used in making plastics. The US recently ordered at least one company to apply for a license to ship products to China, a key buyer of American exports.
