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Oil is Most Likely
Headed to $80+ Within Months

America is going to have huge energy problems if it continues down the road to cancel fossil fuel exploration. This administration has only been in office for 6 months and the writing is plastered all over that we are headed for much higher energy prices near term.

Biden has already canceled the "Keystone pipeline", fracking on Federal lands (11%), proposing to limit all offshore drilling (including the Gulf of Mexico), he has suspended development of oil leases in ANWR and many American big banks have red-lined U.S. coal companies and refused to finance oil projects.

The anti-carbon left says the U.S. must banish fossil fuels to meet the Paris goal of limiting global warming to 1.5 Celsius relative to pre-industrial temperatures.

This is incompatible with worldwide population that is expected to grow by 2 billion by 2050! EV would have to make up 60% of worldwide car sales by 2030. You have 800 million people who don't have access to electricity. We are banning Coal while Australia, China, India, Russia and South Africa – are planning mining projects that would increase global output by 30%. China has 112 Coal mines under construction.

Progressives want to surrender one of America's major strategic economic advantages in the name of saving the climate (questionable boogie man). The banishment of fossil fuels in the U.S. will not eliminate carbon emission, which will be produced somewhere else!

It is so obvious that China, Russia and Iran will exploit the U.S. retreat on fossil fuels! Let us look at the Oil and Gas rig component. During Dec 2019 there were 805 rigs working – fast toward to June 2021 only 457! The lag time between drilling, producing and delivery of fossil fuels can and has created greater dependence on foreign energy, higher prices and severe pain for most that drive and heat/cool their homes. The current administration has it all wrong and we the American people will surely suffer.

As mentioned, the "Keystone" pipeline has been canceled! During the past 2 years at least 4 multibillion-dollar pipeline projects have been canceled or delayed by political roadblocks, and environmental groups are looking to capitalize on the momentum. The next battleground takes place in Michigan where the Gov wants to cancel the Line 3 that runs along the bottom of the strait of Mackinac. This conduit carries more than 500k barrels of oil and NG per day!

The rebound in global oil demand is set to accelerate in the second half of 2021 as the world continues to burn through the supply glut it accrued last year because of the worldwide shutdown due to "Covid"!

Rising consumption will increase to 99 million barrels/day in the second half of 2021, a 5% increase on its level in the first 6 months of the year. The fourth Q is anticipated to reach 100 million barrels/day just shy of 2019's pre-pandemic averages. Recall 800+ rigs working and now 450!

Wall street's preference for "green" energy will depress spending on oil extraction, setting the stage for supply shortages and higher prices. The drop in fossil-fuel spending is becoming so severe that energy companies could struggle to quench the world's thirst for oil.

Crude is still expected to remain in high demand over the next decade to make transportation fuels and petrochemicals used for plastics and other household products. So we have the perfect storm developing and it is at our doorstep! Cancellation of further development in the U.S. of fossil fuels, dramatic ramping up of post "Covid" demand and weak dollar (heavy debt and almost zero interest rates).

Note: A barrel of oil is priced in U.S. dollars across the world. When the dollar is strong, you need fewer dollars to buy a barrel of oil. When the U.S. dollars is weak, the price of oil is higher in dollar terms. (Most likely 1/3 the price in WTI is related to the weakness in the dollar. We don't see any real strength in the dollar during the next 1-1/2 years.)

Natural Gas like Oil has seen a very positive trend on the upside and as we head into 'driving season and air conditioning the price for NG are trending to the $3.50-$4.00 level.

Recall, NG was $1.72 in Sept 2020 vs $3.25 on or about June 13, 2021.

Why the Fossil Fuel Overview?

Over the past 3 decades we have actively participated in numerous Oil/Gas drilling programs. Some with great results, while others left us disappointed! Regardless (win or lose) on the production side we always were entitled to extremely attractive tax benefits.

“We have not been that excited about Oil/Gas drilling programs since 2014 (before the collapse the day after Thanksgiving and the final nail in the coffin when Obama signed the nuke deal with Iran and oil collapsed to $26.00/barrel).”

In our opinion, we have the perfect storm in place for oil and gas prices for the foreseeable future.

The Project that we are inviting our investor's to consider has the most attractive returns for both Oil and Gas, a PROVEN RESERVE, A VERY SHORT TERM FOR COMPLETE PAYOUT AND A HUGE TAX BENEFIT!

Note: 4 years ago we participated in the Barnes #1 Proven Gas Program with attractive returns. Upon completing the well for production, the service companies created a serious mishap that resulted in technical problems making it unable to complete. We believe this was the result of numerous layoffs and extreme industry shift while the rig was on location. The well had to be abandoned due to the prevailed and the final verdict that thus far proved not to be beneficial for investor's!

Note: #1: At present the same lease is being explored and a different technique will be addressed in the Barnes #2 that had not been properly treated in the Barnes #1.

Note: #2: All prior investors that participated within the “Barnes #1” will receive 45% of their initial investment for free! We believe that this proves the ethics and honesty on Energy Equities.

Note: #3: Copy of proposed Project~ for greater detail and investment cost call 800-746-4427.

Note: #4: Brief overview of pending Project, the permit, pad preparation, and well bore prep is happening now and actual drilling to commence within 30 days.

Note: #5: From recent 3D seismic data there are indications of 10.614 BCFG and 1.2 million BO per well.

The well will be drilled deeper and adding a lateral extension. The Company anticipates production to be substantially higher than a vertical well. The lateral will extend 250 feet in the designated channel.

ESTIMATED BOD AND MCFGD PRICING PAYOUT
(Cost/Point $29,500.00~Fractional Consideration Considered)
150 BOD & 3000 $65 WTI/$2.90MCFGD 7.1 MONTHS
300 BOD & 6000 $65WTI/$2.90MCFGD 3.5 MONTHS
450 BOD &9000 $65WTI/$2.90MCFGD 2.4 MONTHS

Please keep in mind that as of June 13, 2021 WTI was around $71 and NG was $3.26/MCF so our estimates of payout are much lower based upon the current pricing.

On June 22nd 2021 the U.S. benchmark of $73.09 hit a 32+ month high. The market is growing increasingly bullish on demand while return of Iranian oil looks more distant than initially thought.

Why Invest with
Energy Equities (800-746-4427)?

Direct Asset Ownership: You own WORKING INTEREST in oil and gas wells, not energy company stock that is at the mercy of an unpredictable market.

Generous Tax Benefits: Minimize your tax liability with write-off of up to 100% of your investment THIS YEAR!

Oil and Gas Revenues: Now is the time to buy oil and gas assets, while a lower cost of entry and extremely low drilling and operating costs position you for very attractive returns ~ we have outlined above.

The puzzle pieces all fit at this point in time. If you have been thinking about participating in owning a potential producing Oil and Gas well.

In our opinion the right time for the right price for extraordinary tax advantage and monthly income.

We have purchased an interest in the Project.

Call Chauncey at Energy Equities
and request a complete PDF on this Project
800-746-4427

Editor’s Note: Bill Velmer has edited S. A. Advisory newsletter since 1984. This exceptional service recommends low priced Nasdaq and Nasdaq Bulletin Board opportunities that are fundamentally undervalued and underfollowed, midcap higher priced stocks that are out of favor and turn-around situations, and international investment opportunities. For more information on S.A. Advisory Click Here.

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