The man in charge of Talos Energy, Tim Duncan, doesn’t believe in playing it safe for modest gains. Tim Duncan goes for the big payout that comes from offshore drilling in places where most oil and gas companies never dare to venture. Tim Duncan and Talos Energy understand that the risks of deepwater drilling can pay off big in the long run.Drilling the Permian Basin, the largest oil province in the nation, is not what Talos energy is looking for. While drilling on land is cheaper and has a much better probability of hitting paydirt, Duncan prefers a $200 million dollar educated gamble on offshore wells that won’t run dry after a few short years.
So where does Talos go when looking for new energy resources? The Gulf of Mexico.A five-mile deep offshore drilling rig in the gulf can cost $200 million, and that’s still no guarantee that the well will produce. For the same amount of money, an oil company could drill and frack 40 wells in the Permian shale with a guarantee of producing oil or gas, but Talos Energy isn’t looking for short-term producers. While drilling offshore may be risky, a good deepwater well can produce for more than a decade. It’s this type of adventurous spirit that Tim Duncan tries to explain to his young investors who have a hard time understanding that the benefits of offshore drilling are worth the risks.
Months after Hurricane Harvey, Duncan negotiated a deal to purchase Stone Energy. It was no easy task, and Duncan had to complete the deal form his parent’s kitchen table after Harvey flooded his neighborhood. After Duncan led his family to safety navigating through waist-high floodwaters, he left Houston only to return to complete the $2.5 billion dollar merger between Stone Energy and Talos Energy he had started months before Harvey. Duncan is a go-getter, and Duncan and his management team know what it takes to make the big score in locating and exploiting new energy resources. Talos energy now produces 48,000 barrels of oil per day and boasts an impressive annual revenue of $900 million.