NEW YORK (TheStreet) -- Blackstone Energy Partners will be focusing on "transportation processing," after OPEC came to an oil-production-cut agreement Wednesday, CEO David Foley said on BloombergTV's "Bloomberg Daybreak: Americas," Thursday morning.
If you think volumes are going up and people who own oil-producing assets have higher expectations, then there might be a "reopening of the bid-ask spread," he said. The bid-ask spread is the amount by which the ask price exceeds the bid price for a security. This means it will be tougher to buy oil-producing assets, which is why his firm is shifting toward transportation processing.
"So volumes are going up. You know that needs to move through pipes, and it needs to be processed," Foley explained.
It's important to note that while the supporters of the two U.S. presidential candidates didn't agree on much, they did agree on investment in infrastructure spending, he said. "And that kind of plays a bit to our strengths in that we do large scale investments. We like to build businesses," Foley said.
The firm has had a bias toward buying "very high quality, low break-even and long-lived assets," so it doesn't feel pressure to sell them after the deal, he noted. If it had bought marginal assets, then it would have been more likely to flip them because while people view OPEC positively today, that could change very quickly if countries cheat on the deal or it falls apart.
"And it could be a reversal in sentiment. That's the oil business, right? There's a boom and bust. And even just in the last couple of years we've had oil to $60 and $30 and back up. So I think that's going to continue," Foley claimed.