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Investor Presentation

Thu, 04 Apr 2024 19:37:23 GMT

Understanding Crude Oil Prices

Wed, 19 Apr 2023 19:44:51 GMT

Crude oil is one of the most important commodities in the world. It is a vital resource for the global economy, and the prices of crude oil can have a significant impact on many aspects of our daily lives. From the cost of gasoline to the price of food, crude oil prices play a significant role in the cost of goods and services worldwide.

Crude oil prices can be affected by a wide range of factors, including supply and demand, geopolitical tensions, and economic growth. In this article, we will explore the factors that influence crude oil prices and provide insights into how the market works.

What Is Crude Oil?

Crude oil is a naturally occurring liquid fossil fuel that is found in the earth’s crust. It is composed of hydrocarbons, which are molecules made up of hydrogen and carbon atoms. Crude oil is typically extracted from underground reservoirs through drilling and is then refined into various products, including gasoline, diesel fuel, and heating oil.

Factors That Influence Crude Oil Prices

1. Supply and Demand

Like any other commodity, crude oil prices are heavily influenced by supply and demand. When demand for crude oil is high and supply is low, prices tend to rise. Conversely, when demand is low and supply is high, prices tend to fall.

2. Geopolitical Tensions

Geopolitical tensions can also have a significant impact on crude oil prices. When there is unrest or conflict in major oil-producing regions, such as the Middle East or Africa, the supply of crude oil can be disrupted, causing prices to rise.

3. Economic Growth

Economic growth is another factor that can influence crude oil prices. When the global economy is growing, there is typically an increase in demand for oil and other commodities, which can cause prices to rise. Conversely, when the economy is in a recession, demand for oil and other commodities tends to decrease, causing prices to fall.

4. Weather Conditions

Weather conditions can also have an impact on crude oil prices. Extreme weather events, such as hurricanes or droughts, can disrupt the supply of crude oil and cause prices to rise.

5. OPEC Decisions

The Organization of the Petroleum Exporting Countries (OPEC) is a group of 13 oil-producing nations that control a significant portion of the world’s crude oil supply. OPEC has the power to influence crude oil prices by adjusting its production levels. When OPEC reduces its production levels, prices tend to rise, and when it increases production levels, prices tend to fall.

FAQs:

1. What is the current price of crude oil?

The price of crude oil varies depending on a variety of factors, including supply and demand, geopolitical tensions, and economic growth. To find the current price of crude oil, you can check commodity price tracking websites or financial news sources.

2. How does crude oil affect the price of gasoline?

Crude oil is the primary ingredient used to produce gasoline. When the price of crude oil increases, the cost of producing gasoline also increases, which leads to higher prices at the pump.

3. Why do crude oil prices fluctuate so much?

Crude oil prices are influenced by a wide range of factors, including supply and demand, geopolitical tensions, and economic growth. These factors can be unpredictable and can cause prices to fluctuate rapidly.

4. What is the impact of crude oil prices on the global economy?

Crude oil prices can have a significant impact on the global economy. When prices are high, it can lead to higher prices for goods and services, which can hurt consumers and businesses. Conversely, when prices are low, it can stimulate economic growth by lowering production costs for businesses.

5. What is the outlook for crude oil prices in the near future?

The outlook for crude oil prices is always changing and can be difficult to predict. However, many analysts believe that prices are likely to remain volatile in the near future due to ongoing geopolitical tensions and fluctuations in global demand.

Conclusion

Crude oil prices are influenced by a wide range of factors, including supply and demand, geopolitical tensions, economic growth, weather conditions, and OPEC decisions. Understanding these factors can help investors and consumers make more informed decisions about the energy market.

As with any investment, it’s essential to conduct thorough research and stay up-to-date on market trends to make informed decisions about crude oil. By staying informed and paying close attention to the factors that influence crude oil prices, you can be better prepared to navigate the complex world of energy investing.

FAQs:

1. What is shale oil, and how does it differ from traditional crude oil?

Shale oil is a type of unconventional oil that is extracted from shale rock formations. Unlike traditional crude oil, which is found in underground reservoirs, shale oil requires specialized extraction techniques, such as hydraulic fracturing or “fracking.”

2. What is Brent crude oil?

Brent crude oil is a type of crude oil that is extracted from the North Sea. It is widely used as a benchmark for global oil prices and is often used as a reference price for setting the price of other crude oil blends.

3. How has the COVID-19 pandemic impacted crude oil prices?

The COVID-19 pandemic has had a significant impact on crude oil prices, with demand dropping dramatically as lockdowns and travel restrictions were implemented worldwide. This led to a significant drop in crude oil prices in 2020.

4. What is the difference between WTI and Brent crude oil?

WTI (West Texas Intermediate) and Brent crude oil are two different types of crude oil, with WTI being extracted from the United States and Brent from the North Sea. While both types of oil are used as benchmarks for global oil prices, there are some differences in their composition and the markets they serve.

5. What is the role of futures contracts in the crude oil market?

Futures contracts allow investors to buy or sell crude oil at a predetermined price on a future date. These contracts play a significant role in the crude oil market, as they allow producers and consumers to hedge against price fluctuations and manage their risk exposure.

Investing in Oil and Gas

Wed, 19 Apr 2023 19:40:24 GMT

Investing in the oil and gas industry can be a lucrative opportunity for investors looking to diversify their portfolios. However, it’s also a complex industry that requires a certain level of knowledge and expertise. In this article, we will provide an introduction to oil and gas investing and discuss the benefits of joint venture investing.

What is Oil and Gas Investing?

Oil and gas investing involves the exploration, production, and distribution of oil and gas resources. The industry is primarily focused on extracting crude oil and natural gas from the ground, refining it, and distributing it to various markets.

The oil and gas industry is heavily regulated and requires significant capital investments to explore and produce resources. As a result, investors need to have a strong understanding of the industry, as well as access to capital, to participate in oil and gas investing.

Benefits of Joint Venture Investing in Oil and Gas

Joint venture investing in oil and gas involves partnering with other investors to share the risks and rewards of investing in the industry. Here are some of the benefits of joint venture investing in oil and gas:

1. Reduced Risk: By pooling resources and sharing the risks of investing in oil and gas, joint venture investors can reduce their overall risk exposure. This is particularly important in the oil and gas industry, where exploration and production can be costly and unpredictable.

2. Increased Expertise: Joint venture investors can benefit from the knowledge and expertise of their partners. This can be particularly helpful for investors who are new to the oil and gas industry and don’t have a strong understanding of how the industry works.

3. Diversification: Investing in a joint venture can provide investors with exposure to multiple projects and locations, which can help to diversify their portfolio and reduce their risk exposure.

4. Access to Capital: Joint ventures can provide access to capital that investors may not have been able to access on their own. This can be particularly important in the oil and gas industry, where significant capital investments are required to explore and produce resources.

5. Potential for High Returns: The oil and gas industry has the potential to generate high returns for investors, particularly if they can identify and invest in successful projects.

FAQs

1. What is the difference between upstream and downstream in the oil and gas industry?
Upstream refers to the exploration and production of oil and gas resources, while downstream refers to the refining and distribution of these resources.

2. How do oil and gas prices affect the industry?
Oil and gas prices have a significant impact on the industry, as they can impact the profitability of exploration and production activities.

3. What are some of the risks associated with oil and gas investing?
Oil and gas investing can be risky, as exploration and production activities can be costly and unpredictable. In addition, the industry is heavily regulated, which can add to the complexity and risk of investing.

4. How do joint venture agreements work in the oil and gas industry?
Joint venture agreements in the oil and gas industry typically involve partners pooling their resources and sharing the risks and rewards of investing in a particular project or location.

5. What are some of the benefits of investing in the oil and gas industry?
Investing in the oil and gas industry can provide investors with access to a potentially lucrative market, as well as opportunities for diversification and risk reduction.

Conclusion

Investing in the oil and gas industry can be a complex and risky endeavor, but it also has the potential to generate high returns for investors. Joint venture investing can provide a way for investors to share the risks and rewards of investing in the industry, while also providing access to expertise and capital. As with any investment opportunity, investors need to do their research and understand the risks and potential rewards before investing.

Natural Resources

Wed, 19 Apr 2023 19:37:37 GMT

Oil and gas are two of the most important natural resources that power the modern world. They are used in almost every aspect of daily life, from transportation to electricity generation, and are critical to the functioning of modern society. The oil and gas industry is a complex and constantly evolving sector that requires a deep understanding of geology, engineering, and economics. In this article, we will provide an overview of the oil and gas industry, its history, and its current state.

The History of the Oil and Gas Industry

The oil and gas industry dates back to the mid-19th century, when the first oil well was drilled in Pennsylvania. The discovery of oil and gas transformed the world, leading to the creation of new industries and driving economic growth. Over the years, the industry has seen many changes, from the rise of OPEC in the 1970s to the advent of fracking technology in the 21st century. Today, the oil and gas industry is a global powerhouse, with companies and operations in every corner of the world.

Exploration and Production

The exploration and production (E&P) sector of the oil and gas industry is responsible for finding and extracting oil and gas reserves. This is a complex and challenging process that requires sophisticated technology and expertise. E&P companies use seismic surveys, drilling equipment, and advanced computer modeling to locate and extract oil and gas reserves from deep beneath the earth’s surface.

Transportation and Refining

Once oil and gas are extracted from the ground, they must be transported to refineries for processing. This is typically done through pipelines, tankers, or other forms of transportation. Refineries then process the crude oil into different types of products, such as gasoline, diesel, and jet fuel. The refining process is complex and involves a series of chemical reactions that convert crude oil into usable products.

Marketing and Distribution

After oil and gas products are refined, they are then marketed and distributed to consumers. This can involve the sale of products directly to consumers, as well as the sale of products to wholesalers and other intermediaries. Marketing and distribution are critical aspects of the oil and gas industry, as they determine the availability and price of products for consumers.

Environmental Concerns

The oil and gas industry is often the subject of environmental concerns, particularly related to the extraction and use of fossil fuels. Issues such as air and water pollution, climate change, and habitat destruction have led to calls for greater regulation and a shift towards renewable energy sources. Despite these challenges, the oil and gas industry remains a critical component of the global economy, providing energy and driving economic growth.

FAQs

1. What is the current state of the oil and gas industry?

The oil and gas industry is currently facing a number of challenges, including low prices, increased competition from renewable energy sources, and regulatory pressure to reduce greenhouse gas emissions.

2. What is the role of technology in the oil and gas industry?

Technology is a critical component of the oil and gas industry, from exploration and production to refining and distribution. Advances in technology have allowed companies to locate and extract oil and gas reserves more efficiently and with less environmental impact.

3. What are some of the environmental concerns associated with the oil and gas industry?

The oil and gas industry is associated with a range of environmental concerns, including air and water pollution, habitat destruction, and greenhouse gas emissions.

4. How does the oil and gas industry impact the global economy?

The oil and gas industry is a critical component of the global economy, providing energy and driving economic growth. The industry employs millions of people and generates trillions of dollars in revenue each year.

5. What is the future of the oil and gas industry?

The future of the oil and gas industry is uncertain, as the industry faces increasing competition from renewable energy sources and growing regulatory pressure to reduce greenhouse gas emissions. However, the industry is also expected to continue to play a significant role in meeting global energy demand in the foreseeable future, especially in developing countries where access to energy is still limited.

Conclusion

The oil and gas industry is a complex and dynamic sector that is critical to the functioning of modern society. From its origins in the mid-19th century to its current state, the industry has undergone significant changes and challenges. Despite the environmental concerns associated with the industry, it remains a vital component of the global economy, providing energy and driving economic growth. The future of the industry is uncertain, but it is clear that it will continue to play a significant role in meeting global energy demand for the foreseeable future.

The Vital Role of Geology in Oil and Gas Investing

Wed, 19 Apr 2023 19:33:45 GMT

Geology plays a crucial role in the oil and gas industry, especially when it comes to investing. It helps to identify where to drill for oil and gas, how to extract them, and how to maximize returns. In this article, we will discuss the importance of geology in oil and gas investing.

Introduction

Oil and gas are two of the most valuable natural resources in the world. They power our homes, businesses, and transportation. Investing in the oil and gas industry can be lucrative, but it can also be risky. That’s where geology comes in. Geology helps to determine the best places to drill for oil and gas and how to extract them efficiently.

Importance of Geology in Oil and Gas Investing

1. Exploration and Drilling

Geology plays a vital role in the exploration and drilling phase of oil and gas investing. Geologists analyze rock formations and use seismic imaging to identify potential oil and gas reservoirs. They also use advanced technology to map out the subsurface structures to determine the best places to drill.

2. Reservoir Characterization

After a well is drilled, geologists continue to play a crucial role in understanding the characteristics of the reservoir. They analyze the rock and fluid properties to determine the best ways to extract the oil and gas. This information is used to develop production strategies and optimize well performance.

3. Risk Management

Geology is also essential in managing risk in oil and gas investing. Geologists analyze the geological and geophysical data to identify the risks associated with drilling in a particular area. They also study the history of the area to understand the risks associated with natural disasters, such as earthquakes and floods.

4. Economic Analysis

Geologists also play an essential role in the economic analysis of oil and gas investments. They provide information about the size and quality of the reservoir, which is used to estimate the potential return on investment. This information helps investors make informed decisions about where to invest their money.

5. Environmental Impact

Finally, geology is essential in understanding the environmental impact of oil and gas drilling. Geologists study the local ecosystem to determine the potential impact of drilling on wildlife and plant species. They also analyze the potential impact on air and water quality.

Frequently Asked Questions

1. What qualifications do geologists need to work in the oil and gas industry?
Geologists typically have a degree in geology, geophysics, or a related field. Some companies may also require additional certifications or licenses.

2. How long does it take to drill an oil or gas well?
The time it takes to drill a well varies depending on the location, depth, and complexity of the well. It can take anywhere from a few days to several months.

3. What are the different types of oil and gas reservoirs?
The three main types of reservoirs are conventional reservoirs, unconventional reservoirs, and offshore reservoirs.

4. What is the process of hydraulic fracturing?
Hydraulic fracturing, also known as fracking, is a process of extracting oil and gas from shale rock formations by injecting a mixture of water, sand, and chemicals into the well to create fractures in the rock.

5. What is the environmental impact of oil and gas drilling?
Oil and gas drilling can have a significant impact on the environment, including air and water pollution, habitat destruction, and climate change.

Conclusion

In conclusion, geology plays a crucial role in the oil and gas industry, especially when it comes to investing. Geologists use their knowledge and expertise to identify potential reservoirs, understand the characteristics of the reservoir, manage risk, analyze economics, and assess the environmental impact. Understanding the importance of geology is essential for making informed decisions when investing in the oil and gas industry.

Wyoming Oil and Gas Boom: A Comprehensive Overview

Wed, 19 Apr 2023 19:30:58 GMT

As an industry leader in the oil and gas sector, we understand the importance of staying ahead of the curve. In today’s world, having a robust online presence is crucial to your company’s success. That’s why we’ve put together this comprehensive overview of the Wyoming oil and gas boom. Our goal is to provide valuable insights and information that will help your company thrive in this rapidly evolving landscape.

Overview of the Wyoming Oil and Gas Industry

Wyoming is home to a vast array of natural resources, including oil and gas. In recent years, the state has experienced a significant boom in oil and gas production, which has contributed to the state’s economy and job growth. The industry has become a vital part of Wyoming’s economic landscape, generating millions of dollars in revenue and supporting thousands of jobs.

According to the US Energy Information Administration, Wyoming is the eighth-largest crude oil-producing state in the US, producing more than 70 million barrels of oil in 2020 alone. In addition, Wyoming is the second-largest natural gas-producing state in the US, with production reaching over 2 trillion cubic feet in 2020.

Factors Driving the Wyoming Oil and Gas Boom

Several factors are driving the oil and gas boom in Wyoming. One of the most significant factors is the state’s geology, which is rich in oil and gas reserves. The Niobrara Shale formation, located in the eastern part of the state, is particularly rich in oil and gas resources. Technological advancements in drilling and extraction techniques have also played a crucial role in increasing production rates and making previously inaccessible reserves economically viable.

Another factor driving the boom is the state’s business-friendly policies and regulations. Wyoming has a long history of supporting the oil and gas industry, with policies in place that encourage investment and growth. The state also has a low tax burden, which makes it an attractive location for companies looking to expand their operations.

Challenges Facing the Wyoming Oil and Gas Industry

Despite the significant growth and success of the oil and gas industry in Wyoming, there are also several challenges that companies must navigate. One of the most pressing challenges is the increasing public concern over the environmental impact of oil and gas production. Companies must work to balance the need for economic growth with responsible environmental stewardship.

Another challenge facing the industry is the increasing competition from other states and regions. As other areas of the country experience their own oil and gas booms, Wyoming must continue to innovate and improve to stay competitive. Additionally, the industry must navigate the ever-changing political and regulatory landscape, which can have a significant impact on operations and profitability.

Opportunities for Growth and Innovation

Despite the challenges facing the Wyoming oil and gas industry, there are also many opportunities for growth and innovation. As demand for energy continues to increase, companies can look to expand their operations and explore new reserves. There is also potential for innovation in the areas of technology and sustainability, with companies investing in new technologies and practices to reduce their environmental impact and improve efficiency.

Conclusion

In conclusion, the Wyoming oil and gas boom is a significant contributor to the state’s economy and job growth. While the industry faces several challenges, there are also many opportunities for growth and innovation. By staying ahead of the curve and investing in new technologies and practices, companies can continue to thrive in this rapidly evolving landscape.

BRICS Nations on Currency and World Trade vs Oil and Gas Price Volatility

Wed, 19 Apr 2023 19:28:40 GMT

In recent years, the BRICS nations (Brazil, Russia, India, China, and South Africa) have emerged as major players in the global economy. These countries are home to a large portion of the world’s population and have some of the fastest-growing economies. However, the BRICS nations face unique challenges when it comes to currency and world trade, particularly in relation to the volatility of oil and gas prices. In this article, we will examine how the BRICS nations are coping with these challenges and what impact they are having on the global economy.

Currency Challenges

One of the biggest challenges facing the BRICS nations is currency volatility. The value of their currencies can fluctuate wildly, which can have a significant impact on their ability to compete in the global marketplace. For example, if the value of the Indian rupee drops sharply, Indian goods become more expensive for foreign buyers, making them less competitive. Similarly, if the value of the Chinese yuan rises, Chinese exports become more expensive, which can lead to a decrease in demand.

To combat this issue, the BRICS nations have been taking steps to reduce their reliance on the US dollar. Historically, the US dollar has been the dominant currency in international trade, but the BRICS nations are seeking to change that. They have been working on establishing a new currency reserve system that would allow them to trade with each other using their own currencies. This would reduce their reliance on the US dollar and make their currencies less volatile.

Trade Challenges

Another challenge facing the BRICS nations is the volatility of oil and gas prices. These countries are major exporters of oil and gas, and fluctuations in prices can have a significant impact on their economies. When oil and gas prices are high, these countries can experience rapid economic growth. However, when prices drop, their economies can suffer.

To address this issue, the BRICS nations have been working on diversifying their economies. They are seeking to reduce their dependence on oil and gas exports and develop other industries. For example, Brazil has been investing heavily in renewable energy, while India has been focusing on developing its IT sector.

Impact on the Global Economy

The BRICS nations are having a significant impact on the global economy. They are home to some of the world’s fastest-growing economies, and their increasing importance is changing the balance of power in the world. In recent years, they have been increasing their trade with each other, which has helped to reduce their reliance on the US dollar.

However, the volatility of their currencies and the price of oil and gas remain major challenges. If they can successfully address these issues, they will be able to continue to grow and compete in the global marketplace. If not, their growth may slow, which could have a negative impact on the global economy.

Conclusion

The BRICS nations are facing unique challenges when it comes to currency and world trade. They are working to reduce their reliance on the US dollar and to diversify their economies to reduce their dependence on oil and gas exports. These efforts are having a significant impact on the global economy, and if they can successfully address these challenges, they will continue to grow and compete in the global marketplace.

Niobrara Shale Production in Wyoming

Wed, 19 Apr 2023 19:25:50 GMT

At Eagle Natural Resources, we take great pride in being a leading provider of high-quality oil and gas exploration services in the United States. We are constantly seeking new opportunities to expand our business and provide our customers with the most innovative and effective solutions. In this article, we will explore the topic of Niobrara Shale production in Wyoming, and how our company is leading the way in this exciting new frontier.

Introduction to Niobrara Shale

The Niobrara Shale formation is a geological formation located in the central United States that contains vast amounts of oil and natural gas. The formation extends from Wyoming, through Colorado and Nebraska, and into Kansas. The Niobrara Shale is known for its high-quality oil and gas reserves, and has become a major focus for energy companies looking to expand their production capabilities.

Production in Wyoming

Wyoming is one of the most significant producers of oil and gas in the United States, and the state’s Niobrara Shale reserves are no exception. The state’s share of the Niobrara Shale formation extends from the southern border to the northern border, covering a distance of over 250 miles. Wyoming’s Niobrara Shale reserves are estimated to contain more than 2 billion barrels of oil and over 70 trillion cubic feet of natural gas.

Our Company’s Role in Niobrara Shale Production

At [Your Company Name], we are at the forefront of Niobrara Shale production in Wyoming. We have invested heavily in the latest technologies and equipment, allowing us to extract oil and gas from the formation in a safe and efficient manner. Our team of experienced professionals has extensive knowledge of the Niobrara Shale formation and is committed to providing our customers with the highest level of service and support.

Our production facilities in Wyoming are state-of-the-art, featuring the latest drilling and extraction equipment. We take great care to ensure that our operations are conducted in a safe and environmentally responsible manner, and we work closely with local communities to ensure that our activities have minimal impact on the surrounding environment.

Conclusion

In conclusion, the Niobrara Shale formation in Wyoming is a major focus for energy companies looking to expand their production capabilities. At [Your Company Name], we are proud to be a leading provider of Niobrara Shale exploration and production services in Wyoming. Our state-of-the-art facilities and experienced team of professionals allow us to extract oil and gas from the formation in a safe and efficient manner, while minimizing our impact on the surrounding environment.

Oil Prices may Surge

Wed, 19 Apr 2023 19:19:35 GMT

Oil prices are constantly fluctuating due to a variety of factors, such as global supply and demand, geopolitical tensions, and weather events. In recent years, there have been several indications that oil prices could exceed one hundred dollars per barrel, which would have significant consequences for the global economy and energy markets.

One of the main factors that could drive oil prices above one hundred dollars per barrel is geopolitical tensions. Countries that are major oil producers, such as Russia, Iran, and Venezuela, have a history of using their oil reserves as a political weapon. For example, in 2019, the United States imposed sanctions on Iran’s oil industry, causing the country’s oil exports to plummet. This, in turn, caused a spike in oil prices globally.

Similarly, conflicts in major oil-producing regions such as the Middle East can also lead to supply disruptions, which can have a significant impact on oil prices. For example, the civil war in Syria has disrupted oil production in the region and contributed to higher oil prices. Moreover, tensions between the United States and China over trade and other issues can also contribute to oil price volatility.

Another factor that could lead to oil prices exceeding one hundred dollars per barrel is the depletion of oil reserves. While there are still significant oil reserves in the world, the rate at which oil is being extracted is faster than the rate at which new reserves are being discovered. This means that as time goes on, oil will become scarcer and more expensive, which could drive prices upwards.

Furthermore, there is an increasing demand for oil in developing countries as their economies grow and their populations increase. This increased demand, coupled with a limited supply, could also contribute to higher oil prices.

Climate change is also a factor that could lead to higher oil prices. As the world moves towards cleaner sources of energy, the demand for oil may decrease, which could lead to a decrease in supply. In addition, governments around the world are implementing policies to reduce carbon emissions, which could lead to increased costs for oil producers.

Finally, weather events such as hurricanes, typhoons, and droughts can also have a significant impact on oil prices. These events can disrupt oil production and transportation, leading to supply shortages and higher prices.

In conclusion, there are several factors that could contribute to oil prices exceeding one hundred dollars per barrel. Geopolitical tensions, the depletion of oil reserves, increasing demand in developing countries, climate change, and weather events can all contribute to price volatility in the global oil market. It is important for governments, energy producers, and consumers to be aware of these factors and work towards developing sustainable energy solutions that can mitigate the potential impacts of higher oil prices.

The Denver-Julesburg Basin

Wed, 19 Apr 2023 19:03:54 GMT

The DJ Basin, also known as the Denver-Julesburg Basin, is a major oil and gas producing region located in the central United States. The basin covers an area of approximately 70,000 square miles (181,300 square kilometers) across parts of Colorado, Wyoming, Nebraska, and Kansas.

The DJ Basin is known for its unconventional oil and gas reserves, particularly its shale oil and gas formations. These formations have become increasingly profitable in recent years due to advances in hydraulic fracturing and horizontal drilling technologies, which have made it easier and more cost-effective to extract oil and gas from these unconventional reserves.

The DJ Basin is home to several major oil and gas companies, including Anadarko Petroleum, Noble Energy, and Encana Corporation. In 2018, the DJ Basin produced approximately 660,000 barrels of oil per day and 3.2 billion cubic feet of natural gas per day.

Overall, the DJ Basin is a significant contributor to the United States’ domestic energy production, and its unconventional reserves have helped to fuel the country’s recent surge in oil and gas production. However, like all fossil fuel production, the exploitation of the DJ Basin’s resources also has potential environmental impacts and may contribute to climate change. Therefore, it is important for companies and policymakers to consider the potential risks and benefits of oil and gas production in the region and work towards developing sustainable energy solutions that can mitigate these risks.

Meet Eagle’s Founder Jeremy Paul

Fri, 27 Jan 2023 20:00:28 GMT

Founder and CEO, Jeremy Alexander Paul has nearly two decades of experience in the oil and gas sector with a proven track record of taking advantage of market opportunities––especially down market environments. Over the past year alone, he has spearheaded the efforts behind acquiring over 4,000 net mineral acres across Texas and Oklahoma. Eagle’s portfolio of held-by-production (HBP) properties currently features minority and majority interest ownership in over 85 producing wells.

Jeremy Paul is a big believer in lower risk redevelopment where an infusion of capital in proven-producing fields with an existing stable of wells can produce big results. With experience in all phases of upstream development including drilling, testing, completing, acidizing hydraulic fracturing, and enhanced oil recovery techniques, Jeremy works with his technical team to implement plans designed to increase daily production and return on investment. From simple mechanical reworks and replacing old equipment to fracking existing wellbores, Eagle’s goal is driving an approximate 200 to 400 percent increase in production through targeted redevelopment.

Prior to forming Eagle Natural Resources, Jeremy provided consulting services to other independent Oil & Gas producers, overseeing the start up and expansion of their private equity departments.

Dakota Access Pipeline to Provide Tax Windfall for ND

Mon, 06 Mar 2017 19:52:58 GMT

It is estimated that the Dakota Access Pipeline will generate more than $100 million in tax revenue annually for North Dakota. In addition to the oil taxes, North Dakota looks to rake in another $10 million each year in property taxes from the Dakota Access Pipeline.

North Dakota is one of the leading states in oil production, second only to Texas. However, the problem with North Dakota is its location, far removed from major oil markets and infrastructure. The Dakota Access Pipeline is poised to change that.

The Dakota Access winds its way from North Dakota oil fields through South Dakota and Iowa to Illinois where it will meet up with existing infrastructure for shipping to major crude markets including refineries along the Gulf Coast. Up to this point, most crude leaving North Dakota has been shipped by truck or train which naturally carries a higher cost than delivery via pipeline. The Dakota Access looks to trim roughly $3 per barrel off of that shipping cost, thus reaping higher profits stakeholders.

The Dakota Access Pipeline has the capability to eliminate up to 500-740 rail cars and/or 250+ trucks each day.

The U.S. Army Corps of Engineers issued the final easement necessary for the completion of the pipeline in February of this year under the direction of newly sworn in President Donald Trump.

The BLM’s methane venting-flaring rule needs to be repealed

Wed, 01 Mar 2017 19:55:37 GMT

When it comes to the Bureau of Land Management’s rule on methane venting and flaring, the real question is, “who has the authority to regulate the air – the BLM or the EPA?”

Experts in the oil and gas industry believe that the BLM does not have the statutory authority to regulate air quality, but the Environmental Protection Agency does.

If that is the case, then the BLM’s rule on methane venting and flaring should be repealed because the EPA already has rules in place for the natural gas industry.

Erik Milito, opinion contributor for The Hill, published a recent article which details the effectiveness of the EPA current regulations, showing that the BLM’s rule is redundant.

In the article Milito states:

Technological innovation and industry leadership, combined with effective state and federal regulations, are making the difference. That makes the Bureau of Land Management’s (BLM) new Methane and Waste Prevention rule not only redundant but actually counterproductive. BLM’s new policy, also called the venting and flaring rule, is just the kind of regulation the Congressional Review Act was designed to correct.

From a technical perspective alone, the rule is misguided. BLM lacks the statutory authority and expertise to regulate air quality. That authority rests with EPA and the states under the Clean Air Act, and the data make it clear the existing system is effective.

But it’s the practical impact that demands action from Congress.

Read the full article at Senate must act on BLM methane rule

Fracking Industry Creates $3.5 Trillion in New Wealth

brian.balbirnie@issuerdirect.com (Brian Balbirnie) — Fri, 24 Feb 2017 19:13:55 GMT

Hydraulic fracturing in the shale oil industry has revolutionized U.S. oil production and created a lot of “fracking millionaires” in the process. It is estimated that between 2012 and 2014, fracking created a staggering $3.5 trillion in new wealth.

The DailyCaller.com reported, “From 2012 to 2014, the shale oil industry generated 4.6 million new jobs due to an energy boom and the resulting low gas prices, according to a study published by the National Bureau of Economic Research (NBER) . Expensive energy could be a huge net positive for the U.S. fracking economy because rising oil prices mean more drilling.”

The DailyCaller.com went on to say, “Oil prices fell to a record low of $30 a barrel during the previous year, sharply reducing the industry’s profit margins, which are now rising again . Researchers estimate that new economic activity from fracking technology created around 4.6 million net new jobs, but only about 1.6 million of these new jobs were directly linked to the oil industry, while many of the rest were due to lower gas prices and the positive effect that had on the American economy.”

Permian Basin Remains Top Oil Producer in the U.S.

Tue, 14 Feb 2017 19:29:02 GMT

Texas is the top oil producing state in the country and the Permian Basin remains the top tight oil producing basin in the U.S.

According to a recent EIA report , “Production in Texas, the largest oil-producing state, is driven by two major oil-producing regions, the Permian and the Eagle Ford. As defined in EIA’s Drilling Productivity Report, the Permian region makes up a large geographic area with producing zones each more than 1,000 feet thick and with multiple stacked plays. Because of its large geographic size, the Permian offers a lot of potential for testing and drilling, and the multiple stacked plays allow producers to continue to drill both vertical wells and hydraulically fractured horizontal wells.”

The report went on to say, “Although overall U.S. oil production has been declining since mid-2015, production has continued to increase in the Permian region. In 2016, Permian production averaged 2.0 million b/d, a 5% increase from the level in 2015. EIA expects this trend to continue, with Permian production projected to average 2.3 million b/d in 2017 and 2.5 million b/d in 2018.”

With this kind of growth anticipated in the Permian, increased land and production acquisitions are expected in 2017. This is a good sign for Permian investors.

Lower Shale Breakeven Prices Good News for Permian Investors

Thu, 09 Feb 2017 19:35:39 GMT

Bloomberg Gadfly released an article earlier this month delving into the breakeven crude prices of North American shale basins. While it was not news that OPEC nations will enjoy, for U.S. shale investors, it is a welcome development.

The main takeaway from the article was “breakeven oil prices for North America’s shale basins and the Gulf of Mexico vary widely, but on average they look competitive even with oil below $60 a barrel.” In particular, the Wolfcamp Midland and Wolfcamp Delaware regions of West Texas’ Permian Basin rate attractive breakeven points at around $42 per barrel on average.

Here is the chart used to illustrate the information:

It shows Wood Mackenzie’s projections of breakeven oil prices for new wells in North America’s shale basins and the Gulf of Mexico. The first thing to notice is that, on average, it makes sense on paper to drill almost anywhere.

Reality is a bit more complicated. As we discussed in this earlier column, all-in costs for exploration and production companies include things like general and administrative overhead and interest charges, all of which must be borne by the barrels they produce. In addition, transportation costs can vary widely depending on where you’re drilling, where your refining customers are and whether the oil is being shipped by pipeline, rail-car or truck.

Continue reading at Bloomberg Gadfly

Permian Basin Oil and Gas Investing Skyrocketing

Mon, 06 Feb 2017 19:31:54 GMT

In 2016, land acquisition deals in the Permian Basin topped $28 billion, which more than tripled deals struck in 2015. This makes Permian Basin land the most sought after oil and gas land in the world.

The Permian Basin is unique in that it was a productive area for crude oil long before the shale boom. That means existing infrastructure. The pipeline network servicing the area is ideal in that it makes for speedy delivery to Gulf Coast refineries or to coastal ports that now export crude throughout the world now that the export ban has been lifted.

This existing infrastructure results in lower production costs than in other shale plays in the U.S. Breakeven costs in most shale plays in the U.S. are at $60 per barrel and above while those costs in the Permian can be in the low $50s and below, which makes the Permian even more attractive to investors.

Already in 2017, Permian Basin land deals have exceeded $9 billion, which puts the Permian on pace to top even last year’s deals.

These land deals mean even more money for the area in exploration and production. Hiring in the Permian is up. Halliburton alone has announced plans to bring 200 jobs to the Permian. In addition, the rig count has increased by about 28% in the last year.

The oil and gas industry is looking to the Permian Basin to lead the way in investments in 2017 and apparently, the Permian is off to a good start.

3D Seismic Survey Project Begins in Permian Basin

Wed, 01 Feb 2017 19:38:08 GMT

TGS has begun its 3D seismic survey in the Delaware Basin of the Permian Basin. This high resolution survey will assist in the evaluation and development of multiple areas of the Permian, including the coveted Wolfcamp shale.

TGS is an international provider of geoscience data to oil and gas exploration and production companies. According to the TGS website, “TGS invests in multi-client data projects in frontier, emerging and mature markets worldwide that make up a data library of seismic imaging, well data and interpretive products and services.”

Kristian Johansen, TGS CEO said, “This first project in the Permian basin is an important milestone in TGS’ onshore strategy and provides a platform for future growth in this prolific area. TGS already holds a leading position in three premier basins in North America: the Duvernay trend in Western Canada, the SCOOP & STACK play in the Anadarko basin and the Utica trend in the Appalachian basin. We are pleased to bring our knowledge and expertise to help our clients in their exploration and development activities in the Permian basin.”

Oil Acquisitions on the Rise as Outlook Improves

Mon, 23 Jan 2017 16:56:42 GMT

Oil acquisitions of more than $31 billion have been announced since November of 2016, boosting investor confidence that a recovery is in the works.

ExxonMobile and Noble Energy set their sights on the Permian Basin to the tune of $10 billion in acquisitions.

Reuters reports:

BP ( BP.L ) announced a string of investments in the last two months of 2016, including a $1 billion partnership with Dallas-based Kosmos Energy ( KOS.N ) in Mauritania and Senegal in West Africa, as well as acquisitions in Abu Dhabi and Azerbaijan.

The British company also spent $375 million on a 10 percent stake in Eni’s ( ENI.MI ) giant Zohr gas field in Egypt while Russian oil giant Rosneft ( ROSN.MM ) bought 30 percent stake of the same field for $1.575 billion.

France’s Total ( TOTF.PA ) and Norway’s Statoil ( STL.OL ) bought into Brazil’s lucrative sub-salt deepwater oil fields while ExxonMobil Corp ( XOM.N ) bought assets in Papua New Guinea to meet growing Asian demand for liquefied natural gas.

Read full report

Oil Field Jobs Returning Could Signal Recovery

Tue, 17 Jan 2017 16:59:07 GMT

Oil field jobs are on the rise following an increase in rig count and drilling activity in the United States. This could signal that a recovery for the oil industry may be coming in 2017.

Nick Cunningham of OilPrice.com reports:

Rising rig counts and an uptick in drilling activity is leading to a rebound in employment in the oil and gas industry, according to recent data.

Payrolls in the oil and gas sector in the United States rose for the month of November, recent U.S. government data shows, the first monthly gain in over two years. Employment in oil and gas extraction and support services rose by 3,300 for the month, rising to 384,300. That comes after the industry lost over 150,000 jobs during the two-and-a-half-year downturn.

While one month’s worth of statistics does not make a trend, the data suggests that the worst is over. The market is passed the low point and even as companies continue to repair balance sheets, oil trading above $50 per barrel is sparking a rebound in drilling activity and hiring. The rig count is already up by more than 200 oil rigs since the middle of last year, posting six consecutive months of gains. U.S. shale output is also rising, up about 300,000 bpd from a last summer, according to preliminary data.

Oil Projects Slated to Double in 2017

Fri, 13 Jan 2017 18:41:52 GMT

“2017 will demonstrate how efficient the oil and gas industry has become; showing projects in better shape all round,” said Malcolm Dickson, a principal analyst for Upstream Oil and Gas for Wood Mackenzie.

Dickson went on to say, “We’ve just come through two years of gloom and lots of costs cutting and now we are cautiously optimistic there will be a start of recovery in 2017.”

Companies, gaining confidence that the oil price slump is behind them, are set to increase spending and more than double new development projects in 2017.

The Oil & Gas Financial Journal reports:

Wood Mackenzie forecasts the investment cycle will show the first signs of growth in 2017 since 2014 and final investment decisions (FIDs) will double, compared with 2016.

Malcolm Dickson, a principal analyst for Upstream Oil and Gas for Wood Mackenzie, said: “2017 will demonstrate how efficient the oil and gas industry has become; showing projects in better shape all round.”

According to Wood Mackenzie’s global upstream outlook for 2017 , confidence will start to return to the sector, with exploration and production spend set to rise by 3% to US$450 billion. Though a corner is being turned, this is still 40% below the heady days of 2014. At the forefront of the revival will be US tight oil. Costs will continue to fall in 2017, though only marginally. But for all the pain of the downturn, a leaner industry is starting to emerge.

Read the full report at WoodMac: New projects in the upstream oil and gas industry to double in 2017 .

Texas Oil Land Deals Leading the Industry

Tue, 10 Jan 2017 17:06:41 GMT

Great news for Texas oil investors – Texas oil land deals account for around 40% of all the U.S. oil and gas land deals in 2016. This is up from only 7% in 2011, making the Permian Basin the most sought-after oil and gas land in the world.

IHS Markit reported that spending on Texas oil land deals reached close to a staggering $20 billion in 2016 and that did not include the month of December.

According to IHS Markit Company Play Analysis in December of 2016: M&A Activity Picking Up in the Permian, “the pace of deal flows will continue to accelerate, since the pace of acquisition activity ramped up dramatically in 2016, particularly in the third quarter, and shows no signs of slowing as 2017 approaches.”

Investors speculate that oil prices will recover even further in 2017 and beyond as evidenced by 24 merger and acquisition deals in the Permian Basin that reached or exceeded $50 million in size through November of 2016.

IHS Markit reports:

HOUSTON (Dec. 5, 2016) – Driven by the potential for profit at current oil prices, oil and gas companies are clamoring for more acreage in the Permian Basin and its sub-plays, spending close to $20 billion year-to-date in 2016, according to new analysis from IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions.

The spending outlay was for 24 merger and acquisition (M&A) deals larger than $50 million in size. The Permian basin is a sedimentary basin located primarily in western Texas and extends into southeastern New Mexico.

According to the IHS Markit Company Play Analysis: M&A Activity Picking Up in the Permian, the pace of deal flows will continue to accelerate, since the pace of acquisition activity ramped up dramatically in 2016, particularly in the third quarter, and shows no signs of slowing as 2017 approaches.

“From an M&A perspective, the Permian Basin is hotter than the Fourth of July in Midland,” said analysis author Andrew Byrne, director of energy company and transaction research at IHS Markit. “The Permian area is now considered the top U.S. onshore liquids region, and this popularity is driving an increase in deal flow in the area. The increase has been quite dramatic, since deals in the Permian — as a percentage of total U.S. deals — have risen from 7 percent in 2011, to 40 percent year-to-date. At 40 percent of total U.S. deal values, the Permian is now the premier M&A target in the U.S.”

Read the full report from IHS Market at – Oil and Gas Company Interest in Permian Basin Acreage Hotter Than Fourth of July in Midland; $20 Billion Spent on Deals So Far in 2016, IHS Markit Says .

2017 Looks Good for Permian Basin Oil

Wed, 04 Jan 2017 18:45:09 GMT

Channel 5 News out of Dallas/Fort Worth posted a recent article lifting expectations of a strong 2017 for west Texas oil, specifically Permian Basin oil.

The article quotes industry leaders Joseph Triepke the founder of Dallas-based research firm Infill Thinking, Jodi Quinnell manager of crude analytics for the energy intelligence firm Genscape, and numerous others.

Triepke said, “I believe 2017 is the Permian’s year.”

It’s a very informative article that paints a very positive outlook for Permian basin oil.

See Company Leaders Expect Strong 2017 for West Texas Oil

Wolfcamp Shale Tops Permian Basin Oil

brian.balbirnie@issuerdirect.com (Brian Balbirnie) — Wed, 28 Dec 2016 16:52:01 GMT

Per a new assessment by the US Geological Survey, the Wolfcamp shale formation in the Midland basin section of the Permian Basin contains approximately 20 billion barrels of oil. Twenty billion barrels makes the Wolfcamp shale the largest deposit of continuous oil ever discovered in America. And even a West Texas Intermediate crude oil price of $50 per barrel would make these deposits worth around $1 trillion – that’s trillion with a “t”.

“The fact that this is the largest assessment of continuous oil we have ever done just goes to show that, even in areas that have produced billions of barrels of oil, there is still the potential to find billions more,” said Walter Guidroz, program coordinator for the USGS Energy Resources Program. “Changes in technology and industry practices can have significant effects on what resources are technically recoverable, and that’s why we continue to perform resource assessments throughout the United States, and the world.”

As large as today’s assessment of the Wolfcamp shale is, it still does not include the Wolfcamp portion of the Delaware basin, which would further increase the estimates of the area.

To give perspective to the Wolfcamp estimates, they are almost three times larger than those of the 2013 US Geological Survey (USGS) Bakken-Three Forks resource assessment and almost 19 times that of the USGS 2012 estimate of continuous oil in place for the Eagle Ford Shale area. To add further perspective, the Prudhoe Bay formation on the North Slope of Alaska, the largest producing oil field to date in the United States, has produced 12 billion barrels of oil over the last 43 years.

2017 is shaping up to be a good year for the oil and gas industry.

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Permian Basin Producers Fight Back Against OPEC

Mon, 18 Jul 2016 15:36:23 GMT

Permian Basin producers have begun a grassroots effort to restrict crude oil imports from foreign countries. This new effort is called the Panhandle Import Reduction Initiative.

This new initiative seeks to break the stranglehold that the Organization of Petroleum Exporting Countries (OPEC) has over crude oil prices worldwide. OPEC’s policies since 2014 have been a major factor in the drop in crude oil prices to ten-year lows. According to researchers in Norway , OPEC’s efforts were a deliberate effort to shut down U.S. shale oil producers.

Now, Permian Basin producers are attempting to turn the tables on OPEC by limiting what countries can import crude into the U.S. According to organizers, only Canada and Mexico will be able to ship crude to the U.S. under their plan.

The Panhandle Import Reduction Initiative is set to launch this September at the Southeastern New Mexico Energy Summit in Carlsbad, New Mexico. Organizers of the initiative plan to give a presentation outlining their plan at the summit in Carlsbad and then take their efforts to the national level.

Daniel Fine, the associate director of the New Mexico Center for Energy Policy, who is working with the Permian Basin producers on the initiative said, “We want to organize public rallies with producers and field workers whose jobs are at stake. This is a grassroots effort in the basins where the oil bust has taken place.”

Cambridge Production owner Tom Cambridge said of the initiative, “It would break OPEC’s back with respect to price manipulation and lead to market prices set by U.S. supply and demand.”

Organizers of the initiative say that the restriction of crude imports would help stabilize the oil market, help the smaller oil companies compete, and put unemployed oil workers back to work.

Organizers plan to wait on the outcome of the November election to ask the new U.S. president to use his/her executive authority to restrict crude shipments from overseas. It remains to be seen how much support their efforts will receive both nationally and in Washington D.C.

U.S. Now Ranked 4th of 25 in Energy Security Due to Shale Revolution

Tue, 05 Jul 2016 15:40:22 GMT

In a report released on June 7th by the U.S. Chamber of Commerce, the United States is now ranked 4th (from 6th the previous year) of the 25 largest energy using nations in energy security. This is due largely to the great successes and future potential production of America’s shale revolution.

Exponential increases in regulation, attempts to turn public sentiment against more innovative ways of extracting energy, and actions by Saudi Arabia to squash shale energy in the global market could have set American energy security back for many years. But instead, American energy production has exceeded many expectations and is poised to maintain its new buoyancy for decades to come.

With this increase in energy security and the very real possibility of long term price stabilization, the U.S. is positioned well to regain its lead in energy production, manufacturing and exporting.

According to Karen Harbert, the President and CEO of Institute for 21st Century Energy U. S. Chamber of Commerce:

American industry pays two to four times less for natural gas, coal, and electricity than many of its global competitors.
This fact increases its competitiveness versus Japanese and European markets, particularly in energy intensive manufacturing.
Burdensome regulations in Europe and the shutdown of the Japanese nuclear capacity after Fukishima are driving their corporations to find cheaper energy sources. (United States)

Continued innovations and increases in United Stated oil and natural gas production will drive stability into the world fossil fuel marketplace.

Harbert also noted:

U.S. energy producers are incredibly nimble, and through the use of advanced technologies, they are able to constantly lower the price point at which oil and natural gas can be produced profitably.
The lifting of the ban on crude oil exports also should result in greater U.S. participation in global oil and natural gas markets on the supply side, which would act to limit the use of energy as a geopolitical weapon and smooth out volatility.

The data are showing that the innovation and wherewithal of United States oil and gas producers has moved the nation into a leading, and much more stable role, in the global energy marketplace. The smart money would get into the thick of it here and now.

What’s the problem with fracking and energy independence?

Mon, 06 Jun 2016 15:29:58 GMT

Advances in hydraulic fracturing technology have propelled the United States farther down the road to energy independence than anything else in recent decades. However, that giant leap towards American energy independence and the use of fracking has drawn more than its share of detractors. What exactly is the problem with fracking and energy independence?

First of all, fracking is not the “new” technology that it is made out to be. Actually, the roots of fracking can be traced back to 1862 when Col. Edward A.L. Roberts used explosive artillery in what is described as “ superincumbent fluid tamping “. Then in 1865, Roberts used “exploding torpedoes” in artesian wells that resulted in the increase in oil production of up to 1200 percent in some wells within a week of the procedure. However, it was not until the 1930s and 1940s that liquid was used in hydraulic fracturing instead of explosives. Since then, thousands upon thousands of wells have been fracked across the United States. In fact, oilfield services company Halliburton estimates that more than 1.1 million hydraulic fracturing jobs have been done in the United States since 2013 (some wells are fracked more than once), and almost 90% of new U.S. onshore oil and gas wells are hydraulically fractured.

It wasn’t until just recently that the word “fracking” hit the radar of people outside the oil industry. In the early 1990’s George P. Mitchell introduced a whole new method of drilling for oil and natural gas, which combines the techniques of hydraulic fracturing and horizontal drilling. Since the early successes seen in North Texas’ Barnett Shale, modern day fracking has spread like wildfire to shale plays across the United States and has ushered in a legitimate oil boom.

The oil boom, naturally, brought publicity…

Now that fracking has hit the news, there is much speculation and debate as to whether or not fracking is safe for ground water. Despite its wide-spread use for over eighty years, environmental groups and Hollywood have viciously demonized fracking, fueling the debate.

The 2013 documentary Gasland Part II, made by filmmaker Josh Fox, used a Texas environmentalist’s hoax of lighting water from a garden hose on fire to show hydraulic fracturing allegedly contaminating water. However, the 43rd Judicial District Court of Texas found that the Texas landowner, “under the advice or direction” of environmental activist Alisa Rich, intentionally attached a garden hose to a gas vent and not a water line, thus debunking the allegation in this case.

In 2014, a Department of Energy report from a landmark 18-month federal study on hydraulic fracturing found no evidence of contaminated drinking water at a site in western Pennsylvania. Dave Spigelmyer, President of the Marcellus Shale Coalition said in an email that the study reflects “the industry’s long and clear record of continuously working to enhance regulations and best practices aimed at protecting our environment.” Again, no evidence of contaminated drinking water caused by fracking.

Gasland Part II Hoax

Geologists at the University of Cincinnati recently completed a three-year study on hydraulic fracturing and its impact on local water supplies in the Utica shale region. The following video shows that the University of Cincinnati study found no evidence of ground water contamination from hydraulic fracturing.

However, the results of the study are not being released to the public . Dr. Amy Townsend-Small, an assistant professor at the University of Cincinnati Department of Geology and the leader of the study said, “ I am really sad to say this, but some of our funders, the groups that had given us funding in the past, were a little disappointed in our results. They feel that fracking is scary and so they were hoping our data could point to a reason to ban it. ” Ohio State Representative Andy Thompson is calling for the university to release its findings to the public, but to date, the findings have not been released.

The 2012 anti-fracking film, Promised Land, starring Matt Damon was partially funded by Image Nation Abu Dhabi, as pointed out by the conservative think tank Heritage Foundation . As it turns out, Image Nation Abu Dhabi is owned by Abu Dhabi Media which is a state-run media company for the United Arab Emirates. The UAE is a prominent OPEC member and is the world’s third-largest oil exporter. Coincidence?

In 2014, Project Veritas headed by James O’Keefe, released video footage exposing Hollywood celebrities agreeing to accept money from what they thought to be “middle eastern oil interests” to fund an anti-fracking movie. It was clear that the end game of the “oil baron” was to end fracking, thus bringing the trek to America’s energy independence to a screeching halt.

In January 2015, the Washington Free Beacon ran a story written by Lachlan Markay titled, “Foreign Firm Funding U.S. Green Groups Tied to State-Owned Russian Oil Company“. In the piece, Markay pointed out that “a shadowy Bermudan company that has funneled tens of millions of dollars to anti-fracking environmentalist groups in the United States is run by executives with deep ties to Russian oil interests and offshore money laundering schemes involving members of President Vladimir Putin’s inner circle.”

Researchers at the Environmental Policy Alliance produced a report that was released in 2015 showing Russian interests funneled tens of millions of dollars to major U.S. environmental lobbying organizations that included the Sierra Club, the Natural Resources Defense Council and the League of Conservation Voters. This money flowed through opaque environmental bundlers, one of which was the Sea Change Foundation. The Sea Change Foundation is also known for giving away tens of millions of dollars every year to help “ reduce carbon emissions ” and “combat climate change”. It has been reported that the Sea Change Foundation has donated over $18 million dollars to the Sierra Club Foundation, over $16 million to the League of Conservation Voters Education Fund, over $15 million to the Natural Resources Defense Council, and over $64 million to the Energy Foundation. The Energy Foundation’s website describes the group as “a partnership of major foundations interested in sustainable energy.”

In summary, we have environmentalists committing fraud as proven in Texas’ 43rd Judicial District Court. We have Hollywood perpetuating that fraud in Gasland Part II. We have a Department of Energy report showing no evidence of ground water contamination from fracking. We have a University of Cincinnati study on the effects of hydraulic fracturing on local water supplies whose findings will not be released to the public because they weren’t “scary” enough. We have OPEC and the United Arab Emirates funding Hollywood anti-fracking movies, and we have Russian interests funding a host of environmental groups across the U.S. that are determined to thwart American energy independence.

What does all this mean? Apparently, there are countries that are highly dependent on oil and natural gas for their economies, which seem to have a problem with fracking and American energy independence.

Eagle Asset & Activities Recap – 1Q16

Thu, 14 Apr 2016 15:03:13 GMT

Since the oil price downturn began in mid-2014, Eagle Natural Resources has acquired roughly 4,000 +- acres in the Permian Basin of West Texas and the Bend Arch region of North Central Texas. The majority of the leases have their own injection and/or salt water disposal wells and are held by production (HBP).

Eagle’s stable of producing properties features 80 to 100 BOPD of production from Gaines, Dawson, Archer, Wilbarger, and Foard Counties in Texas. Roughly 30+ wells produce from the following zones: Wolfcamp Reef, Strawn, San Andres, Dean, Sprayberry, Clear Fork, KMA, Caddo Lime, Mississippi, Granit Wash, Atoka Conglomerate, Gunsite, and Canyon Reef zones.

In total, Eagle’s asset portfolio currently includes the following as of 1Q16:

3.65 MMBO in booked PUD reserves + 8.6 MMBO in upside reserve potential
Upside 8.65 million reserve potential
60 infield drilling locations in inventory

Extensive redevelopment initiatives are currently underway on certain properties, which are designed to increase production by 200-400%. Activities include:

Pull all production rods, tubing and downhole pumps
Drill out wellbore to original depth and circulate to clean conditions
Acidize and/or Frac the producing reservoir(s)
Refurbish Pumping Units, Flow lines, Separation systems and Tank Facilities
Re-run new tubing, rods and downhole pumps and put well back into production

Once the recompletion actives have been finished, a developmental PUD drilling plan will be implemented, pending favorable oil pricing.

With crude oil prices still below the $40 per barrel mark, Eagle will continue to aggressively expand our asset portfolio, targeting the acquisition of HBP’d oil producing properties with redevelopment and upside drilling potential.

Have crude oil prices bottomed out?

Tue, 15 Mar 2016 14:51:31 GMT

January 2016 saw crude oil prices drop below the $30-mark for the first time since December 2003. With February bringing more of the same, markets have seen an incredible 72% plunge from crude oil’s peak of almost $108 in June 2014. While the last few weeks have seen prices stabilize closer to the $40 per barrel, everyone is wondering: have crude prices finally bottomed out?

While the short answer is we certainly hope so, the longer answer is more complicated. It requires a hard look at where we are in the delicate game of supply and demand.

First, some background. Advances in technology driven by private U.S. innovation have unlocked vast amounts of oil and natural gas reserves, primarily in shale basins across the Lower 48. Overall crude-oil production, excluding the Gulf of Mexico, grew to 7.4 million barrels a day in 2015 from 6.81 million in 2014, according to the U.S. Energy Information Administration.

Investing in American oil production, and driving towards U.S. energy independence, has been a tremendous positive––but it has come at a price. What we find ourselves in today is a supply glut, which has led to the dramatic downturn in the price of oil.

Unhappy with the rapid gains from U.S. shale basins, Saudi Arabia blocked calls in fall 2014 from OPEC poorer members for production cuts to arrest the slide in global prices. This move set in motion a solid year plus of pedal-to-the-metal output, which has done nothing to help settle pricing instability. For the most part, prices have gone nowhere but down since then.

But it seems even Saudi Arabia can’t stomach a sub-$30 oil environment for long.

Saudi Arabia has recently signaled that it will not look to increase production in the near term. Instead, the global oil producing powerhouse (along with Russia) has agreed to cap production in hopes of stabilizing supply and demand to bump up crude prices. While this isn’t an outright production cut, many analysts are seeing this as the first signs that OPEC may be capitulating just a little on its not-so-secret war on the U.S. shale industry.

So, where are we now on the supply side? Outside of Saudi Arabia’s recent concession not to increase production, several other factors are converging that show that worldwide production is set to plummet. And the drop is tied directly to low oil prices.

In response to falling profitability (and even viability), companies are slashing budgets, which in turn, is driving down worldwide production numbers. Public companies with direct exposure to the U.S. oil industry have announced the cancellation or deferral of 80 major projects. And the cuts are big––CapEx reductions (from 2015 to 2016) are estimated at over $83 billion. If state-owned companies like Saudi Arabia’s Aramco, Mexico’s Pemex, and Russia-owned producers are added in, oil and gas consulting services firm Rystad Energy forecasts a staggering $170 billion in global cuts.

When capital investment drops, rig counts drop. The number of rigs drilling just in the United States has fallen by approximately 76% since peaking in the fall of 2014. In October 2014 there were over 1,600 active rigs; today, rig counts are now near their all-time low.

And when rig counts drop, production drops. According to the U.S. Energy Information Administration (EIA):

S. oil production in April is expected to see the second-largest monthly decline on record, its sixth straight monthly decrease.
In 2017, U.S. crude oil production will fall by more than double what was predicted just a month ago – from 8.46 million barrels of oil per day (BOPD) to just over 8 million barrels of oil per day.

The impact of the budget cuts discussed above is even more stark for future oil production. Industry analyst Wood Mackenzie estimates the $83 billion in cancelled and/or delayed projects will account for U.S. production losses of around 1 million barrels of liquids per day by 2021, rising to just under 2 million barrels of oil equivalent per day by 2025.

As you can clearly see, plummeting capital investment, and the corresponding drop in rig counts, equals less oil.

So now let’s look at demand.

Worldwide demand is still going up––despite the fact that we are seeing lowering expectations due to slowing growth. For 2017, the EIA adjusted its projections for U.S. oil demand downward by 160,000 BOPD and, worldwide, by 250,000 BOPD. The IEA is currently standing by its forecast that global crude demand will increase by 1.2 million BOPD in 2016.

All of these factors––the Saudi capitulation, the drop in non-OPEC production, rising demand––can be taken as signs that a possibly recovery may be in the works. Common sense, and historical perspective, says that as supply tightens and demand goes up, crude oil prices tend to increase. How far up… and how quickly we see those higher prices… is a different question entirely.