13 Jun June 2022 – Petroleum is King!
Let’s just state the obvious…there’s never been a better time to have producing wells!
The reasons why prices are staying so high in the market is a litany of egregious federal policies, geopolitical happenings, lack of historic institutional funding, and general worldwide demand for product as alternative energy sources have been “made”. (really trying not to be political)
West TX Intermediate (WTI) sitting at $120 a barrel and $8.50 per mcf of natural gas TODAY! It’s simply mind-boggling.
Petroleum is not alone. The CRB Index increased 101.56 points or 41.12% since the beginning of 2022, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. There’s not an energy nor commodity company stock I own that is underperforming! I’m sure most of you are having the same experience.
Petroleum has never seen such sustained REAL profitability in my lifetime. Smart people have been doing both direct participation and Oil and Gas ETFs. Budget discipline mentality adopted during days not long ago where oil was $45 a barrel are being practiced today. This make me feel confident profitability and industry stability will stay high even when prices come down.
So…did you miss the boat? Is it too late to take advantage? No!
Evaluation fundamentals of offerings here have not changed no matter what market conditions are. We still look at every log, map, geology and/or engineering report, and AFE (authority for expenditure) to determine where the base price of profitability resides (ideally +30% less of current market price on oil and +40% less on natural gas as of now) and minimum 18 months payout, even on the most conservative new drills and re-entries. Most of our programs project under a year payouts with excellent lifetime ROIs.
Check out the opportunities page on my website to see if something appeals to you. I’m around to answer questions. We’ll be getting new programs in the next weeks, as I have completely moved Ft. Worth!