2011 Energy Brochure 1st Quarter

A year after the Macondo well incident, we see an industry that continues to be affected by global events. The turmoil in Egypt and the civil unrest in Libya, along with the worldwide political reaction to the earthquake-damaged reactors in Japan have kept oil and energy front and center on the global stage due to the volatility of the market and rising prices.

However, considering all of the outside factors affecting the industry, we have begun to see a rise in deal-making within the energy sector-upstream (including renewables), midstream and downstream. M&A and capital markets activity is very strong within the energy sector, even frothy in certain areas. It seems that a new midstream company is formed daily, whether through an MLP IPO, the launch of a private equity sponsored management team, or the formation of a joint venture or an acquisition. In the upstream sector, shale is quickly losing its label of “unconventional.”

Shale gas plays continue to gain attention in the market, with investments being made by the largest and smallest participants. Over the next few months, we will continue to see more companies investing in shale both domestically and internationally. Further, China has emerged as a power player in the energy sector and will continue to dominate the headlines with significant investments in North America and around the world.

In April 2011, the firm hosted an event in Dallas and Houston titled “Understanding Asia,” in which we partnered with Hill & Knowlton and Public Strategies to give an overview of this unique marketplace. On page 7 of this quarterly, you'll find a forward-looking article, co-authored by partners Hank Terhune and Brian Pomper, that discusses the impact the Fukushima Daiichi nuclear accident may have on the United States nuclear market. Immediately following that article, you’ll find an article by Ying White, a partner in our Beijing office, that discusses Chinese investment in the global natural resources market. Our firm has significant experience working with Chinese companies and doing business in Asia, so we hope you will consider us for guidance on future matters.