The oil industry has been a steady economic market for over a century. The industry is a necessary one, supplying over 37% of the state’s power. Investments in California oil companies is crucial to the success of the industry and the economic benefits that derive from it. Investing in these entities is a careful science that requires complex analyses contextualized to the market and the condition of the world.
One individual that has been engaging with the industry for some time is Isaac Toussie. Toussie has worked with numerous oil companies and investors, particularly in the California market. Some of the main work that he does is providing large companies with cashflow and sensitivity analyzes. Cash flow analyses are imperative for companies, especially those companies and investors that seek to make long term investments. Cash flow analyses, as the name indicates, is a prediction of how much cash will flow in and out of an entity over a given period of time. The analysis allows companies or investors to know if the investment is bringing in more cash than it is distributing out. Furthermore, for investors, a cash flow analysis is crucial in determining whether an investment suits the needs of the investor. Some investors are looking for a short-term liquid investment, while others are seeking a long-term investment with more cash flowing in over a longer period. To determine any of this, companies require a cash flow analysis to determine how much cash is coming in and when.
Toussie also specializes in producing replacement cost platforms. Replacement cost platforms look to analyze the cost to replace particular assets. These platforms are critical in determining the success of an investment, given that multiple assets will age and depreciate over the life of the investment. By determining how much it will cost to replace an asset, one can predict future expenses at the inception of the investment. This is a necessary tool for investors to attain accurate information regarding potential investments and they are key to Toussie’s success.
Toussie remains strongly enthusiastic about investing in California oil. Its utility coupled with its benefits over other forms of energy are compelling reasons for him to continue bolstering these investments. However, certain harmful items are disrupting the market. The most recent was an oil spill in Inglewood led to over 1,600 gallons being dumped into a local field neighboring a park playground. The area has a history of accidents, with three in the past ten years. Events like complicate the safety and efficiency of the market generally. These occurrences are usually limited to concentrated regions, but spills can be devastating to the local environment. Toussie emphasized that spills like these need to be prevented and hindered, but spills should not be used as an ad hoc justification to argue for the elimination of the industry as a whole.
Toussies proficiency in the industry makes him sought after by oil investors and operators. His methods of assessing investments and their viability are pivotal to investors and oil companies and has earned him a significant name in the field.
This article is presented for informational purposes only and should not be relied upon as financial or other advice.