Why Oil and Gas Today?*
* NOT AN OFFER TO SELL OR A SOLICITATION TO BUY.
TAX BENEFITS
DRILLING PROSPECT AVAILABILITY
- Small drilling prospects are better than ever (and there are more of them).
COMPETITION
- The big money has gone offshore and overseas, because there are too few easy-to-find big oil fields remaining.
- Over 10,000 oil companies have left the arena since 1982.
DEMAND/CONSUMPTION
- Petroleum demand is doubling about every 10 years.
- U.S. oil stock piles are at 27 year low. (14 days of domestic consumption)
OIL PRODUCTION TREND
- US output is at a 36 year low
- Over two-thirds of domestic oil wells are classified as marginal (avg = 3 bbls/day).
- Imports are now over 60% (imports were 30% just before the oil embargo).
PRICE FORECAST
- Long range projections are up.
DRILLING COSTS
- Presently (Feb'08) Rig activity is substantially up, but remains reasonable.
TECHNOLOGY
- Recent advances in oil finding technology has improved recovery and reduced risk.
- Some companies report 85% success on wildcat wells.
ENVIRONMENT
- Sierra Club endorses natural gas
- Combustion by-products are carbon-dioxide and water.
GOVERNMENT
- Encourages domestic drilling with special tax breaks.
- Mandating natural gas usage over oil and coal.
- Natural gas is now deregulated.
MONEY CRUNCH
- Traditional sources of drilling money are no longer available, which is a bonanza for independent investors.
WINDOW Of OPPORTUNITY
- Traditional sources of drilling money are no longer available, which is a bonanza for accredited investors.
- Oil and Gas prices are projected to stay at high levels for at least the next 5 years.