Katy Smith – Columbus Business First – Jun 19, 2015, 6:00am EDT
CEO, Capital City Energy Group Inc.
How did you get into the energy industry? We began to package closed-end funds of selected domestic, fractional well interests and other exploration and production assets around 2007, with team expertise garnered in this sector extending as far back as the 1970s.
What is the biggest challenge for the energy industry in 2015? For petroleum, narrowly and immediately, it’s commodity pricing and the strategic search for efficient business models within those exigencies. Amid the larger, strategic “new” energy questions – that transcend narrower discussions of only hydrocarbons and present industry with ever newer, technological opportunities – the challenge will increasingly be not only to discover, but to best compete within this changing matrix of permissible-to-best practices in safely and sufficiently producing and delivering various energy off-takes. This paradigm shift continues to accelerate, undoubtedly, and we like watching through as wide-angle a lens as practical, notwithstanding our belief that the current over-supply of non-liquid, domestic gas will eventually diminish more from new downstream applications than from demand fundamentals.
Do you think Ohio should have renewable energy and energy efficiency standards? The public’s desire and need for safety and attendant best practices, throughout history, trumps other considerations. This is no less true for newly emerging technology, both today and tomorrow, as well as dramatic and complex issues surrounding unconventional exploration and production. Like most of our industry peers, we strongly support responsible public dialogue in these matters and dynamic changes that flow from there toward best practices.
Oil and gas development has slowed in Ohio amid falling oil prices. How has this affected your business? Like upstream players of all sizes, we are now much more circumspect about the development economics of new wells. Of course for us, shallower is often better, but we are typically scaled within a range where moderately conventional plays and even secondary recovery are more feasibly accretive for us than our larger, independent peers.
What do you forecast for your business over the next five years? We intend to continue our core exploration and production strategy of opportunistic, geographic diversification across a multitude of U.S. basins, developing and enhancing conventional and unconventional assets, including primary and especially secondary recovery that’s well proven, where producing liquids but even non-liquids makes sense, especially where emerging innovation leads this core expertise toward fruitful new collaborations and shareholder rewards.
Freelance writer Susan Deutschle coordinates People to Know.
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