Onshore drilling is becoming more popular, but it’s a short-term game. With a more guaranteed return, onshore oil reserves are drying up faster while offshore sites are able to produce large amounts of barrels per day for over a decade. Perhaps it was this outlook that had Tim Duncan adamant to stay in deep waters and not succumb to the temptation of a more ‘sure’ thing. Even with newer and younger investors wondering why he hasn’t chosen to drill onshore, Tim has stayed true to his commitment to deepwater drilling at Talos energy.
When hurricane Harvey hit the US, it brought with it devastation that was unlike anything in recent memory, it had destroyed Tim Duncan’s street, making it unusable. It filled up the first floor of his house and he, along with his family had to be rescued by a FEMA boat. After his concern for his family, his greatest concern was making sure that his oil company, Talos Energy would be able to seal the deal that would mean the take over of Stone Energy, a publicly traded company. Stone Energy was running on a loss but the benefit of taking Talos Energy public without the cost of doing so offset the losses with some debt restructuring.
He was able to get his family to Alabama before returning to his parents’ Houston, TX where he would work on the deal from his mother’s kitchen and would see the merger happen in May. While most companies are somewhere in the Permian Basin, Talos Energy is taking a more radical approach by becoming one of the few foreign companies to drill in acreage under the authority of the Mexican government by securing the rights for an area off of the Gulf of Mexico – Zama, which will be able to produce oil in around five years.
Growing up all over the world thanks to his father being in the oil business with his childhood spent in Egypt, Texas and Florida have given Tim Duncan a global perspective which has allowed him to make choices that are not the easy ones, but choices he believes will grant him the biggest rewards.
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