Family Offices Shift to Oil and Gas Amid Rising Energy Demand

Family offices and ultra-high-net-worth investors are shifting their focus to oil and gas as rising energy demand, supply risks, and growing prices drive interest in the sector.

The war in Iran is exacerbating global supply risks, while the AI boom is fueling increasing energy demand. As a result, family offices are targeting pipelines, export facilities, and producing assets, rather than short-term commodity trades.

Competition for oil and gas assets is intensifying, with major transactions like Devon's $25 billion merger with Coterra Energy and Shell's $16 billion acquisition of ARC Resources reaching new heights. However, smaller family offices can still find opportunities in non-operated assets worth less than $100 million, which may be undervalued due to a lack of buyer interest.

Commodity traders and hedge funds like Gunvor, Citadel, and Vitol are expanding into physical U.S. shale production assets, while managed money net-long crude positions have increased as global supply risks intensify.