A lot has happened in the past few months in the oil business. OPEC has initiated a cap on production from each member country, and seemingly, with good effect. Furthermore, each member has cut production to stabilize oil prices. However, the $64,000 question is, will the Trump presidency be the much-needed panacea for the oil business in the U.S?
President Trump promises the U.S. will become more self-sufficient in its’ energy needs. It’s a great ideological concept and we personally believe it’s entirely possible…which would indeed make our country greater, but can it be done? If so, the U.S. would be under less duress from other oil producing nations by being entirely independent. We remember when the late President Nixon said that the U.S. must become independent in its’ oil production…in fact, we also remember every President since making the same statement.
President Trump appears to have already implemented the tools and taken necessary steps to reverse the restrictive, bureaucratic stone walling regulations of the EPA. Furthermore, under the Obama administration, the so-called environmentalists had more control over the drilling and transportation of oil and gas. Obama was an ideologue, which almost destroyed our great country and this industry, which would have left the U.S. crippled…which may have been his plan from the beginning. Trump’s directives to reverse these Obama-era roadblocks enable a far brighter future for the domestic oil and gas industry. Ultimately, this helps all consumers with lower pricing of their fuel needs and less or no politically motivated policies.
It seems evident however that the U.S. is reluctant to explore and produce more of its’ energy resources. Between the U.S., Canada and Mexico there are enormous potential oil reserves waiting yet to tapped for our use domestically. In fact, research has shown that the U.S. has more oil than Saudi Arabia and Russia combined (CNBC July 5, 2016 article “US oil reserves surpass those of Saudi Arabia and Russia”), as do numerous other industry analysts and reporters have also stated.
Yes, things are now looking somewhat brighter for this industry and all Americans, where many well-paying jobs in oil and gas could be realized again… in addition to the end consumer…which we all are…who will receive all the benefits. Furthermore, the U.S. Federal Government will be in receipt of income and corporate tax revenue from the industry for production, which it has not been receiving for quite some time.
Put on your sunglasses, America, the sun is coming out and it is going to be a lot brighter now. That’s it for now. Keep your heads up, America.
Piedmont Resources Corporation
February 27, 2017
Piedmont Resources Corporation announces commencement of re-work operations on ten of twenty-seven existing shut in oil wells. The wells are located on the “Finnegan Lease”. The Finnegan Lease is part of Piedmont Resources Corporation’s East Alma Drill Project.
Planned work will entail pulling rods, tubing, repairing/replacing down-hole equipment, repairing and replacing surface infrastructure.
It is planned to place the ten oil wells into production by May 1, 2017.
Piedmont Resources Corporation
February 10, 2017
Piedmont Resources Corporation has entered into a significant Joint Venture agreement with Asomeo, LLC related to the East Alma Drill Project. This Joint Venture was effective from January 23, 2017.
Asomeo, LLC has an option on the 527.3 Acre Leasehold and plans to commence drilling new wells on June 23, 2017.
Terms of the Joint Venture is as follows:
- Asomeo LLC will drill five oil wells per year to maintain the Joint Venture terms and conditions.
- Piedmont will have a ten percent “Carried Working Interest” until payout. After payout the ten percent “Carried Working Interest” converts to a thirty percent “Working Interest”.
The five new wells will be drilled to a minimum depth of 2,400 feet. These wells will test the historically known Penny and Richburg oil formations.
Zones below the historic producing formations will be tested for both oil and gas.
It is planned that the new wells will be drilled, completed and producing by August 15, 2017.
The shale revolution has dramatically changed the global energy landscape.
Matthew DiLallo (TMFmd19) Feb 27, 2017 at 8:27AM
For decades, the oil market has been dominated by Saudi Arabia, because it not only produced the most oil on a daily basis but also controlled the most oil underground. Those oil resources, known as reserves, gave the country leverage because it could ramp its output up or down to respond to market conditions. It often used that advantage to keep oil prices at a level of its choosing by putting pressure on other members of OPEC to follow its lead.
That said, there’s a new kid it town that, thanks to advances in drilling technology, now has more reserves than the Saudis. That surprising newcomer is none other than the United States of America, which, according to one estimate, has the world’s largest oil reserves.
IMAGE SOURCE: APACHE.
Drilling down into the numbers
According to a report by energy consultancy Rystad Energy, the U.S. holds 264 billion barrels of oil reserves, which includes oil from existing fields as well as a projection of oil from yet-to-be-discovered fields. Rounding out the top five are Russia (256 billion barrels), Saudi Arabia (212 billion), Canada (167 billion), and Iran (143 billion). Rystad found that the U.S. had already discovered 109 billion barrels of the reserves it used for its estimates.
Another of Rystad’s findings was the importance of shale in fueling America’s explosive growth in oil reserves, with these sources supplying 50% of the reserves. Of that amount, 60 billion barrels were in the state of Texas alone, thanks to the Eagle Ford and Permian Basin. Meanwhile, another 20 billion barrels of oil are likely underneath the state of North Dakota in its Bakken shale, according to estimates by leading developer Continental Resources (NYSE:CLR). On top of that, the country has several emerging shale plays in the Rockies and Oklahoma that are starting to become important drivers of reserve growth.
Published in Oil Industry News on Wednesday, 2 November 2016
Oil prices edged higher on Tuesday as a weaker dollar boosted greenback-denominated commodities, although worries that OPEC will not do much to reduce a global glut kept the market near one-month lows.
U.S. gasoline futures RBc1 dominated action outside of the crude oil complex, spiking 11 percent before giving back some gains, after Colonial Pipeline Co COLPI.UL shut its main gasoline and distillates pipelines following an explosion in Alabama.
The dollar index .DXY, measured against a basket of currencies, hit a near two-week low after U.S. construction spending unexpectedly fell in September, setting the pace for what could be a mild downward revision to third-quarter U.S. growth estimates. [FRX/]
Brent crude LCOc1 was up 33 cents at $48.94 a barrel by 11:26 a.m. EDT. It traded as low as $48.51 earlier, after losing nearly 3 percent the day before in the biggest one-day drop since Sept. 23.
U.S. West Texas Intermediate crude CLc1 rose 24 cents to $47.10. WTI’s session low was $46.56, after a near 4 percent drop on Monday.
Crude prices rallied about 15 percent over a three-week span after the Organization of the Petroleum Exporting Countries proposed on Sept. 27 its first production cut in eight years to reign in a global oil oversupply. Brent hit one-year highs and WTI 15-month peaks in early October as OPEC kingpin Saudi Arabia talked up the plan, inviting non-member producers such as Russia to make cuts too.
In the past two weeks, however, a growing number of OPEC member have said they were unwilling or unable to cut, casting doubts on what the group could do when it meets on Nov. 30 in Vienna.
“Notwithstanding day-to-day rebounds, the oil rally since late September on the notion of OPEC cuts has been almost wiped out,” said David Thompson, executive vice-president at Powerhouse, a commodities-focused broker in Washington.
“It looks like we will break down more momentously unless the Saudis intervene with big output cuts of their own,” said Thompson, who sees WTI testing support next at $45.
OPEC officials approved on Monday a document outlining the exporter group’s long-term strategy, in a sign its members are making progress in ironing out differences over how and when to manage production levels and, ultimately, oil prices.
“Even if the fear of such low prices leads OPEC to deliver an agreement on November 30, we reiterate our view that the odds of it succeeding are low,” Goldman Sachs said in a research note.