Invito Energy Partners administers and offers an investment fund, primarily to accredited investors through investment advisors or directly to investors, so that they may invest in direct oil and gas sector and energy business ventures.
Before building Invito Energy Partners, Steve Blackwell worked as the president of Petromax Operating. Blackwell supervised the deployment of over $100 million in investor capital into three operated fields, where they leased over 86,000 net mineral acres and drilled 39 horizontal wells. In addition, he handled the sale of the properties for a little under $900 million with an average return of 370%.
In his tenure as Chief Operating Officer of U.S. Energy Development Corporation, Blackwell oversaw the deployment of about $100 million in investor funds for the drilling of 29 wells in the Eagle Ford shale asset of the company. During his time with the company, he was able to reduce well costs by 25%, improve average EURs by 5%, and boost the return on investment. Blackwell holds a Bachelor of Science in Business Administration, Finance, and Accounting from Central Michigan University.
Nuzerous substantial tax advantages are linked with direct oil and gas investments. In the 1970s, the United States Congress enacted several Internal Revenue Service (IRS) rules to stimulate direct investment in the depletion of hydrocarbons within the United States. This is primarily due to the 40- to 50-year dependence on foreign oil. Although this has changed over the past 15 years, tax code advantages remain. Part of what Invito Energy Partners does is provide private investors the chance to join and benefit from this opportunity, as well as receive the cash flow of the wells from an investment and return perspective.
Witnessing the pandemic’s impacts on the industry, Blackwell mentioned that COVID was a significant blow to the global industry. For context, 100 million barrels of oil are consumed every day. It was a “blue swan” occurrence that brought the world to a standstill, 15 million barrels a day were lost — from 100 million to 85 million. It was a significant setback for infrastructure and oil and gas projects in 2020.
Because of that, the industry struggled. Several businesses failed, and numerous staff and technical personnel departed. Before that, the industry was undergoing a transition and a difficult time since Wall Street’s mantra for a decade was to accumulate reserves: Borrow as much as you can and build up your reserves, the promise that reserves would eventually generate a return of capital via cash flow, distributions, or dividends never materialized which led to public capital exiting the energy sector.
The industry lost fifty percent of the CapEx allocations to COVID and is still down 25%. On the other hand, the physical market is favorable regarding supply and demand, as supply decreases and demand is almost back to 100 million barrels per day demand has returned to pre- pandemic levels globally. The daily US oil consumption is 20 million barrels, and it keeps increasing to this day.
All forecasts indicate that demand will increase over the next ten years, from the Organization of Petroleum Exporting Countries (OPEC) to the Energy Information Administration (EIA). Before COVID, the market was oversupplied for six or seven years. Since COVID, the market has been undersupplied, and Blackwell doesn’t foresee that changing in the future, which makes energy investments an attractive option. Hence, now more than ever is the time to invest with Invito Energy Partners.
To know more about Invito Energy Partners, visit their website https://invitoep.com/