This weekly news column is for the growing number of private investors wishing to keep their finger on the pulse of the ever changing energy business, and is provided as a free informational service.

Industry News

Removing US oil ban would create jobs beyond drilling
Potentially up to 850,000 US jobs could be created annually from 2016 to 2030 by lifting the current oil ban in place, according an IHS report: Unleashing the supply chain: Assessing the economic impact of a US crude oil free trade policy. Read more  

USW and Shell reach tentative deal to end strike at US refineries
Royal Dutch Shell and the United SteelWorkers union (USW) have reached a tentative bargaining agreement over pay, benefits, and health and safety standards for union workers that could settle a more than 6-week unfair labor practice (ULP) strike in effect at 15 US refineries and associated installations. Read Article

As US storage capacity is now becoming a key pricing factor, BHI reports rig counts down for 14 consecutive weeks.

The US drilling rig count plunged 67 units—64 on land and 56 targeting oil—to settle at 1,125 rigs working during the week ended Mar. 13, according to data from Baker Hughes Inc.That total is the lowest since Nov. 20, 2009, and 684 fewer units compared with this week a year ago. The count has now fallen in 14 consecutive weeks, losing 795 units during that time. Read here


E&P News

Hydraulic Fracturing rules make way for permits in North Carolina
Rules governing the hydraulic fracturing method for drilling natural gas are expected to take effect Tuesday, creating the potential for drilling to start later in the year.The set of 120 rules that govern issues including well construction, water testing and buffer zones was developed by the state Mining and Energy Commission over nearly two years and approved in December by a separate state panel. Read here

Noble set to declare Cyprus natural gas find viable
Noble Energy is expected to declare its Aphrodite natural gas reserve off Cyprus commercially viable within weeks, paving the way for exports. Full article


Technology News

Next generation electronic flow measurement communications: Increasing efficiency, accuracy and security in oil and gas
The Oil & Gas Industry has changed dramatically in recent years. Liquids are currently dominating the market, due to the increasing accessibility of oil and Natural Gas Liquids (NGLs) that are being produced by unconventional drilling methods like horizontal drilling and fracking. Exploration and production efforts are also becoming increasingly remote as more local reservoirs of “easy oil” are depleted. While these changes present many opportunities for growth, they also create new challenges that the Oil & Gas Industry must overcome to recognize its potential, such as transporting product from these remote wellsites. Although pipelines are one of the primary means of transporting oil and NGLs, accurately measuring liquid flow in a pipeline can be challenging. Read more


Disclaimer

All data and information provided on this site is for informational purposes only. USOilinvestment.com and its Newsletter makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.This is a personal publication; the opinions expressed here represent my own and not those of my employer.

{ 0 comments }

Talking about Crude

by charlie on March 20, 2015

This weekly news column is for the growing number of private investors wishing to keep their finger on the pulse of the ever changing energy business, and is provided as a free informational service.

Industry News

Texas’s Permian crude transport backlog should subside
West Texas’ economy has been based on oil and gas for nearly a century. Because the Permian Basin is invested so heavily in the oil and gas industry, the region’s businesses are used to its ups and downs. Read Full Article

Kuwait expects OPEC to continue policy beyond JuneOPEC is likely to maintain its production policy at a meeting in June, Kuwait’s OPEC governor said on Tuesday in the first public comment on what would be a crucial decision to determine the direction of global oil prices in the second half of the year. See more


Company News

Largest Bakken producer reportedly seeking investment

The largest oil producer in the Bakken shale region, Whiting Petroleum, is reportedly hiring financial advisers to seek potential investments due to increasing financial pressure from the drop in crude oil prices. Read here

Environmental News

BNSF oil train derails in  rural IIlinois
A BNSF Railway train loaded with crude oil derailed and caught fire on the afternoon of March 5 in a rural area south of Galena, Ill., according to local officials and the company. The incident marks the latest in a series of derailments in North America and the third in three weeks involving trains hauling crude oil, which has put a heightened focus on rail safety.Read here

Group calls for ban of oil trains following derailments
Following two separate derailments of oil trains in North America, the Center for Biological Diversity is calling for a moratorium on oil bearing trains on safety and environmental grounds. Read Article


Technology News

Progress, challenges seen in implementing digital oilfield technology

The oil and gas industrys progress in implementing oilfield digital technology can be summed up in a quote by science fiction writer William Gibson- ” The future is already here, it’s just not evenly distributed.” Full Article

Disclaimer

All data and information provided on this site is for informational purposes only. USOilinvestment.com and its Newsletter makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.This is a personal publication; the opinions expressed here represent my own and not those of my employer.

{ 0 comments }

Current News Views and Play March 4, 2015

by charlie on March 11, 2015

This weekly news column is for the growing number of private investors wishing to keep their finger on the pulse of the ever changing energy business, and is provided as a free informational service.

Industry News

BHI: US rig count continues to tumble, falls 43 units to 1,267

The US drilling rig count declined 43 units—down from losses of 48 last week and 98 the previous week—to settle at 1,267 rigs working during the week ended Feb. 27, according to data from Baker Hughes Inc.That total is the lowest since Jan. 15, 2010, and 502 fewer units compared with this week a year ago. The count has now fallen in 13 consecutive weeks, losing 653 units during that time.During the week, land rigs fell 42 units to 1,208 while offshore rigs fell 3 units to 51. Rigs drilling in inland waters gained 2 units to total 8. Read more

It’s no JK: Oil spread blow-out portends new price slump

Another sharp dive in oil prices may be nearer than you think, according to traders who see the market flashing warning signs that vital Oklahoma storage tanks will fill up even sooner than expected. Read more


Company News

Anadarko Petroleum cuts ’15 Capital Expenditures by a third

Anadarko Petroleum Corp said on Tuesday it will reduce spending by about 33% this year, as the exploration and production company responds to lower crude oil prices. Article here

Goodrich cuts well costs, drilling time in Tuscaloosa Marine Shale
The good news is that initial production rates from Goodrich Petroleum Corp.’s Tuscaloosa Marine Shale wells are “very positive and improving.” The bad news is that oil prices remain depressed and Goodrich lost $233.3 million during the fourth quarter. Read here


Environmental News

Alaska Environmental Officials investigating oil line leak

Investigators are reviewing the cause of an oil production pipeline breach on Alaska’s North Slope where upwards of 4,000 gallons (15,100 liters) of fluid spilled, state official said on Monday. Read further


Market News

Oil Holds Near $50 as Investors Await U.S. Crude Stockpiles Data
Crude traded near $50 a barrel in New York before U.S. government data on inventory levels in the world’s biggest oil consumer.
West Texas Intermediate, the U.S. benchmark, climbed as much as 1.5 percent. Crude stockpiles probably expanded by 3.95 million barrels last week, extending a record high, according to a Bloomberg News survey before an Energy Information Administration report Wednesday. WTI narrowed its discount against Brent on Monday by the most in two years on speculation that the accumulation of crude inventories at the U.S. storage hub in Cushing, Oklahoma, will slow.Read more here

OPEC unlikely to hold extraordinary meeting
OPEC is unlikely to hold an extraordinary meeting anytime soon and, even if it does, Cartel’s policy is unlikely to change, Tom Pugh, commodities economist British economic research and consulting company Capital Economics believes.Article here


Disclaimer
All data and information provided on this site is for informational purposes only. USOilinvestment.com and its Newsletter makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.This is a personal publication; the opinions expressed here represent my own and not those of my employer.

{ 0 comments }

Industry News February 26 2015

by charlie on March 2, 2015

Industry News

This is a good article explaining why it’s not just the rig count that is indicative of where the industry is at. The number of wells awaiting completion is now becoming significant as companies defer the associated costs and hold off on losing out on higher profits from the flush production. Read more here

If we are to believe the reason for the drop in oil prices being a supply and demand imbalance, then this article by the American Petroleum Institute (API) must surely have some people scratching their heads. By all accounts, January 2015 seemed to be a record month for demand, production, decreased foreign import and increased input into domestic refineries. Read here

ExxonMobil, the worlds largest publicly traded oil company claims to have replaced 104% of its 2014 reserves output from additions including the Permian Basin and Kearl oil sands in Canada. Full article

The Unites Steelworkers Union (USW) has launched additional work stoppages at the largest refinery in the US and three other facilities as part of their unfair labor practice strike. Read more

Investing Views

I have long been a big supporter of the somewhat controversial financial educator Robert Kiyosaki and came across this video yesterday. While promoting his new book ‘Second Chance’ he makes clear reference as to why he buys into oil and gas programs. Quite simply for the tax benefits. Hence he is not concerned with the current temporary drop in oil price.

A long time advocate of investing outside of the stock market in he is even predicting a stock market crash in 2016. This 18 minute video has some good points. For those of you on a time squeeze, you can skip to 16.55 about his oil and gas comments. Watch video here

Company News

EOG Resources have cut their budget by 40% compared to last year down to approx $5 Billion for 2015. Read here

Noble Energy’s budget is also down 40% for 2015. Investment in US onshore unconventional plays is planned at $1.8 billion, split evenly between the DJ basin and Marcellus shale. Noble says it will focus on increasing recovery in both areas through the application of long laterals and modified completion techniques. Full article

Environmental News

A U.S. judge on Thursday rejected BP Plc’s attempt to reduce the maximum civil fine it could face for its role in the 2010 Gulf of Mexico oil spill, leaving it potentially liable to pay $13.7 billion under the federal Clean Water Act. Read More

Market News

Warren Buffett’s Berkshire Hathaway Inc. sold its entire position in Exxon during the final three months of last year, according to a regulatory filing on Tuesday. The exit marks the end of a $3.7 billion investment in 2013 that at the time was Buffett’s biggest single bet since he bought into International Business Machines Corp. two years earlier. Full article

Disclaimer
All data and information provided on this site is for informational purposes only. USOilinvestment.com and its Newsletter makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.This is a personal publication; the opinions expressed here represent my own and not those of my employer.

{ 0 comments }

Trip to the Oil Fields

by charlie on November 6, 2012

With everything that has been going on, it has been hard to find the time to put pen to paper or in this case finger to keyboard. In light of this I thought I would give you an update on my most recent adventure in Texas.

Last week was spent in Texas visiting the Swenson Lease, my newest acquisition that I am a partner in.

From the get go I knew it was going to be a busy few days. Upon arriving on location at 7am, still pitch dark and bitterly cold, Brent our field supervisor and walking encyclopedia of everything oil, brought me up to speed as to where we were at.

The #1A well which was our first scheduled work over was not giving up as much fluid as expected and therefore the pump size that we were going to use would need to be changed.  Another investor who was out visiting the previous week had called attention to oil bubbling out of the #2A, about 200ft away from the #1A. This Well was not on the schedule to be reworked yet as it was producing 3bopd. However upon closer examination it was determined this problem needed immediate attention and Brents’ focus was redirected accordingly.

Over the next 3 days it was one issue after another. Through the previous operator’s bad maintenance we quickly realized that with a bit of TLC this Well could be brought around to 20bopd. Brent and the crew worked tirelessly pulling the rods and tubing dealing with the issues. What was initially thought to be a crack in the Well head which would require a full replacement ended up being a case of negligence and not screwing the Well head on tight enough. We also discovered that basically the Well had not been produced properly for at least 2years if not more, which was great news for us, so having circulated the Well and removed the 100ft of built scale and debris in the bottom of the Well, replacing over a 1000ft of tubing and putting a new pump in the Well began producing about 160 barrels of fluid with an approx 20% oil cut.

It was truly exciting being able to watch and witness the events unfold. To understand the methodical and measured approach taken to put these Wells back in to production correctly is a real learning experience. Patience is definitely the name of the game.

After 5 days it was time to leave Abilene and go back to Dallas, where over the next 3 days I was meeting with different operators to review and conduct Due Diligence on other potential investments.

In particular, I was looking forward to meeting with Matt Griffin the CEO of Payson Petroleum, who has had great success in Grayson County. I was there to learn more about his next project which is a 5 Well package on the same lease as the Brown #1 which was drilled in December 2011 and was brought in at 600+ bopd in May of this year.

I visited the Well location of the Brown #1 as well as being shown the new spud sites for the next 5 wells. The Jenny and the Crowe are the next to be drilled.

With 46 producing Wells in their growing portfolio I am very excited to be a part of their next project. Having met his team in their new offices in Bartonville, it is clear to see why they are successful.  There is a transparency and energy among the team that sets them apart from others in the industry. Their core values lies with the Investor being the priority and ensuring that what they offer is an industry quality product for the retail investor. So much so that I am proud to say that I am a principal on this project and consequently would welcome all interest and questions you may have about this fantastic opportunity.

As usual, sometimes there is not  enough time and it was time to get back to California. I was sad to leave Texas this time around as I was learning so much and meeting so many great people. I came away with a deeper appreciation of what goes on in the field, something that every investor should experience for themselves and having found 2 new projects to sink my teeth into.

If you would like any more info on my trip or simply have some questions about it or any other aspect of investing in oil, then please feel to get in touch by phone on 805 403 7080 or via email at contact@hardrockoil.com, or visit my website www.usoilinvestment.com.

 

{ 0 comments }

Dinks Finance Interview Part Two

by charlie on October 18, 2012

 

FOR THE FULL INTERVIEW, CLICK HERE

I’d like to thank James and his crew at Dinks Finance for it has been my pleasure being interviewed and having the opportunity of educating more investors in the benefits of investing in Oil – turning Oil Flow into Cash Flow.

I’ve received some great questions and comments since Part 1 was posted on October 9, 2012. As always, I welcome any and all questions, call or email me anytime.

Happy Investing!

Charlie Rushton

tel: 805-403-7080

contact me by email

{ 2 comments }

Dinks Finance Interview Part One

by charlie on October 13, 2012

For the Full Interview Click here

Stay tuned for the Second half coming soon….

All questions welcomed, call or email me anytime.

Charlie Rushton

tel: 805-403-7080

contact me by email.

{ 0 comments }

Us Californian’s have it good; warm temperate weather all year round, lazy days on the beaches, good restaurants…so why do we have a different gas mixture for summer and winter? Many of you may not realize that the reason for the squeeze on the price is lack of supply due to the time of year when the type of gas changes from summer to winter. This is unique to California and typifies the over regulation of the state.

The problem is further compounded by the main Chevron California refinery that sustained a fire last week that has impacted the supply line. California is historically one of, if not the most, expensive State in which to buy gas at the pump. With any luck, things will be back to normal (what is that?) in a couple of week’s time.

Ask me how to hedge against gas prices at the pump.

 

Charlie, the Go-To Oil Guy

HardRock Oil LLC

805-403-7080

contact@hardrockoil.com

{ 0 comments }

Food for Thought

by charlie on September 19, 2012

I was speaking with a friend who shall we say is well connected when it comes to the government and the global Jewish community. We were discussing where, how, and why to buy gold and silver for investment as I am a big proponent of buying bullion.

The conversation progressed to that of Israel and how soon they may or may not attack Iran.  These rumors are gathering momentum on the back of Prime Minister Benjamin Netanyahu appointing a new civil defense minister, increased distribution of gas masks, and even tested a nationwide text message system that would alert the public in the event of missile attacks. Of course if Israel launches attacks before the U.S. election in November, President Obama will have no choice but to publicly support Israel’s offensive.   Should such an attack take place it would be catastrophic to the stock market and global oil prices could spike.

And this is just the tip of the iceberg, there is much more information available about this topic. With mounting evidence that Israel may soon attack Iran’s nuclear facilities, maybe now is the time to consider investing in our domestic oil and gas sector. There are many Direct Participation Programs out there. But which one do you choose? What do you look for in the Due diligence phase? These and all your other oil investing questions can be answered. Call me on 805 403 7080 or visit www.usoilinvestment.com, and learn how to turn oil flow into cash flow for you and your family.

Happy Investing,

Charlie

HardRock Oil LLC

{ 0 comments }

Conversation with an Investor this Morning.

by charlie on September 17, 2012

1. Why should I invest in Oil today?

There is a current boom in the Industry that the small independent operators are capitalizing on. To do this, they need funding. This is where the investor who aligns himself with companies that focus on developmental  production can make very good returns with affordably priced  investments. Direct Participation Programs (DPP) in the past have been primarily reserved for accredited investors and those in the know, that is not the case anymore. With Geopolitical friction and an unstable Global economy, the price of Oil is at a level that allows for constant Return on Investment (ROI).

2. Why are we in a boom right now?

While the US government does not have an energy policy per se, it is no secret that America’s desire to become energy independent is high on the political agenda. While the Majors are therefore pushing to find reserves, the Independents are contributing their share by revisiting older fields in the hopes of revitalizing them by using more modern technology that allows them to recover a higher percentage of the reserves left behind. This is leading to a boom in the services sector of the industry and pushing operational expenses slightly higher. Rig counts due to demand are some of their highest levels seen and daily rates are up 10%. This has also been a direct result from the price of Oil itself as operators race to increase their production and cash in.

3. While I know there are risks involved in any investment, in the Stock Market today, the S&P is up around 10-12% year-to-date, what kind of Return can I expect from participating in an Oil program?

Returns can vary widely depending on the program itself. Projections can range from as little as 20% to 15X return. Industry analysts suggest a minimum 5-to-1 payout  to make the project worth investing in when weighing against the risk.

4. How do you find programs to invest in?

There are many programs available that can be found on the Internet, however, learning of projects from trusted sources and a network of industry professionals is my preferred method. Knowing who you are dealing with is paramount importance so building relationships and knowing their operating history is vital. I take the time to do my due diligence as there are many unprofessional operators at there.

5. How soon do I see a return on my money?

This is very difficult to answer since it depends on each project. Sometimes, it can be as soon as 90-180 days other times it could be a year or more.

And the rest were specific questions on the current opportunity that they were interested in. I hope you find these helpful.

Oil is trading at $99.27 as this goes to print.

Happy Investing!

Charlie

usoilinvestment.com

Contact Me

805-403-7080

{ 0 comments }