Gerson’85 and Abbe’92 on CNBC – Hobart and William Smith Colleges \
The HWS Update

Gerson’85 and Abbe’92 on CNBC

Jeffrey Gerson ’85, who has more than 24 years of experience providing financial advice, appears frequently on financial segments on CNBC. Recently, he was joined by fellow Hobart alum Richard Abbe ’92, co-founder of Iroquois Capital Management, discussing Abbe’s recent focus on oil fields.

“There’s big oil plays,” Abbe said on the segment, adding, “Occidental Petroleum is in there right now as well as a lot of others.”

He noted they are also purchasing fields in Texas and New Mexico.

“We’re buying them now for nothing and basically we are bringing our own teams in and running those businesses,” he said.

Abbe is a member of the Hobart and William Smith Colleges Board of Trustees. He earned a B.A. in economics from Hobart College. His generous donation funded the renovation of Folwell House on campus so it could become the Jewish cultural center. It has been named The Abbe Center for Jewish Life in his honor.

Gerson graduated from Hobart College with a degree in economics.  He has returned to the Colleges as a speaker for the Professionals in Residence series and is an active member of Autism Speaks, a trustee of the Harrison Educational Foundation, and the Save the Children Westchester Council. 

The full text of the show follows.


CNBC
Energy Investors Search for New Oil in Old Places

Gennine Kelly • Web Producer CNBC • December 30, 2010

Major oil companies are moving to the Bakken Shale-an oil field that stretches down from Canada into North Dakota and Montana, Richard Abbe, co-founder of Iroquois Capital Management, a $250 million dollar fund told CNBC’s on Thursday.
“There’s big oil plays,” Abbe said, adding, “Occidental Petroleum [OXY 97.54 -0.46 (-0.47%) ] is in there right now as well as a lot of others.”

In addition to Bakken, Abbe is also focused on the Permian Basin, in Texas.
“We’ve been buying up land down in the Permian Basin. We are buying mature assets that have been given up by the big oil companies in the past. They’ve been running them successfully and then they have given up on them because they are too small,” he said.

The Permian Basin is located in West Texas and the adjoining area of southwestern New Mexico-approximately 250 miles wide and 300 miles long.
It produces 17 percent of the nation’s crude oil and two-thirds of Texas’ crude oil. Proven reserves of oil in this area are second only to Alaska, which contains 21 percent more oil reserves, according to the University of Texas of the Permian Basin.

“We’re buying them now for nothing and basically we are bringing our own teams in and running those businesses,” he said.

Oil could trade as high as $120 a barrel and as low as $80, Abbe said.
In addition to oil, Abbe is long on silver, gold and lithium.