Private investors ignore Europe and dive into oil with €26 billion

Europe wants to bet everything on green, both in the energy sector and in transportation. However, companies have the primary goal of making their investments profitable, and in this aspect, oil still has a lot to say.

This is demonstrated by a report from Houlihan Lokey, which has analyzed the global energy market. It has revealed that private investment in the traditional energy sector, that of fossil fuels, is far from languishing.

According to the data provided by this report, more than $30 billion (about €26 billion) is ready to be invested in oil, once again boosting a sector that continues to provide profitability and consolidation opportunities.

In fact, during the first quarter of 2025, the market experienced a considerable rebound in terms of mergers, acquisitions, and asset development. This led the energy market back to pre-pandemic levels, surpassing $23 billion in added value and increasing the transactional volume by 75% compared to the last quarter of 2024. An aspect in which the United States has played an important role.

Interest in oil returns: private money does not write it off

After years of major mergers between companies in the energy sector, many private investment funds are finding opportunities to buy facilities that are already operational and promise good short-term profits. But why now?

These investors are focusing their attention on projects that have already proven to be profitable, which has driven interest and prices in the auctions of these types of assets. But the movement is not limited solely to oil or gas extraction: investment in infrastructure such as pipelines and hydrocarbon storage has also grown.

All this is happening despite the global economic situation, which is not exactly simple. Still, some continue to bet heavily, especially in sectors like liquefied natural gas, which benefits from rising demand in Asia and new facilities in countries like the United States or Canada.

Regarding the stock market, there was also some enthusiasm for companies in the energy sector, with some IPOs performing well. However, towards the end of the quarter, this momentum slowed down, partly due to volatility in oil prices and fears of new trade tensions between major powers. An uncertainty that has made it more complicated to know how much these assets are really worth.

A step back from green energies?

With the aim of continuing to invest in oil and gas, some large investment funds have gathered more than $30 billion. But this money is not only looking to buy more, but also strengthen the role of key players in the new global energy landscape.

This situation could be interpreted as a step back in the transition to cleaner energies. Instead, the Houlihan Lokey report sees it more as a two-pronged strategy: leveraging the benefits of hydrocarbons to continue betting on projects with less environmental impact, such as carbon capture technologies or natural gas, which emits less CO₂ than other fossil fuels.

The way forward is clear and has already been marked: renewable energy in its various branches. But the market seems to send a very clear message to Europe: “Hold on, don’t rush”.

Fuente: El Periódico de la EnergíaFotos: Freepik