Archive | January 2015

Expanding US Energy Exports

Over the past year, energy prices have reached lows not seen in almost seven years, and this development has caused many legislators and energy experts to consider whether the United States is relying on outdated energy policy to forge a path into this new era. Not only large energy companies, but smaller concerns such as Aschere Energy Dallas can play a significant role in making the U.S. an energy leader in coming years.

Expanding Energy Increases U.S. Strength

Greater expansion of American energy resources can have a number of favorable consequences for the country. Expansion can create jobs that will stabilize the U.S. economy, creating more jobs, and a more secure workforce that is better able to participate in the consumer economy. But this expansion will also have wider ranging effects. US energy exports to Europe and other countries will diminish the influence of troublesome nations in the world marketplace. In March of 2014, Senator Lisa Murkowski of Alaska pointed out the advantages of using the country’s energy reserves to provide greater security around the world, decreasing reliance on countries with governments that are known to support groups that work to destabilize nations that depend on their oil reserves. Senator Murkowski emphasized the importance of moving quickly to take advantage of this new abundance in energy production to secure the nation’s role as an energy superpower.

U. S. Increases It Market Share

Over the last decade, U.S. energy exports have tripled from 4 quadrillion btu’s to over 11 quadrillion btu’s in 2013. Recent data indicate that America has moved from a net energy importer in the global market to an energy exporter. The Senator from Alaska proposes that the current ban on exporting crude oil be lifted and that second-guessing the marketplace by placing arbitrary restrictions on natural gas for export be stopped, because it directly hampers the country’s ability to use these resources effectively for the national good.

The Role of Smaller Energy Companies

US energy exports can be facilitated not only by relying on the energy giants to lead the way, but also by providing support for smaller energy companies who are also benefiting from the new technologies in oil and gas production. These enterprises are moving into areas such as offshore drilling off the Louisiana coast and refining of crude supplies. Companies like Aschere Energy Dallas can contribute to America’s efforts to increase the country’s expansion of its energy markets to help to create a more peaceful and secure planet.

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Gas Prices Are Down

A decline in gas prices has been a relief to many consumers planning for travel during the winter months. Businesses have also been affected by the fluctuating prices. In response to the changing prices, companies are exploring options to remain stable during the times of uncertainty.

Why are oil prices dropping?

Oil prices have changes due to reduced consumptions and demand for oil. Greater competition from other energy sources is another reason for the reduced gas prices. Higher domestic production levels have also contributed to decreased demand for foreign oil. OPEC’s goal to maintain competitive pricing has been in response to the growing competition and decreased demand. With all of these factors affecting gas prices, consumers and business owners stand to win in several ways.

How are gas prices affecting energy companies?

Companies in different areas are benefiting from the lower gas prices. Lower energy costs increases the amount of funds available to consumers for spending. Companies with transport and logistics needs benefit from the lower prices. Businesses relying on shipping like farmers and manufacturers can spend less in overhead in maintaining their fleets. Energy companies have taken an interesting approach to addressing the lower gas companies.

What are the available opportunities for energy companies?

Companies recognizing a need to increase profitability amid the declining gas prices benefit from exploration. These companies have invested in drilling in deeper waters and other experimental methods like fracking to increase their bottom line. Others are expanding their portfolio of services to explore the opportunity of incorporating renewable energy sources into the services offered. Companies like Aschere Energy have made the decision to pivot and explore new directions to protect their profitability. Aschere Energy has started to invest in developmental drilling practices and focusing drilling efforts in unexpected areas. Energy businesses have learned to diversify their portfolios of services effectively in order to improve their bottom line in a climate where countries are adopting economic policies centered on diversification and energy-independent policies.

Falling fuel prices benefit consumers the most. Businesses can lower their operating costs as a fuel prices continue to drop. Energy companies are investing more in diversification and energy exploration practices to build and grow their businesses. For more information Click Here!

The Booming North American Energy Revolution

Energy is a volatile industry in today’s world. As consumption increases and demand grows, the need to find additional sources for oil and gas has never been greater. While in the past North America, particularly the United States, has had to rely upon foreign suppliers for much of its oil, a renaissance has taken place in the past several years. As a result, the potential now exists for a U.S. industrial recovery based on the production of cheap energy. With huge increases in shale-gas extraction and tight oil, companies such as Aschere Energy are playing a vital role in this energy revolution.

With companies such as Aschere Energy Dallas and other cities in Texas are poised to once again strike it big in oil and gas. Through a combination of government policies that have become more industry-friendly, increased access to drilling sites, the stabilization of property rights and various market incentives engineers have been able to use their skills and the latest technology to help North America get closer and closer to being self-sufficient regarding energy.

With the United States ready to surpass Saudi Arabia in daily oil output and non-OPEC production being the driving force of global supply growth for the next decade, the North American energy revolution appears ready to be unstoppable. It’s estimated by 2030, one-half of the 16 million barrels per day increase will come from tight-oil, with two-thirds of them coming from U.S. tight oil and oil sands in Canada. As the Southwestern U.S. undergoes an energy revitalization, Aschere Energy will be one of the major players in tight oil production.

Most experts agree that government policy is the driving force behind these changes. While East Asia, Latin America and Africa have substantial shale and tight oil resources that equal or surpass the United States, the combination of government policy and sound infrastructure will allow the U.S. to stay ahead of the competition. With Aschere Energy Dallas and other major oil-production cities in Texas will use the investments made in technology and infrastructure to once again become key players in the world’s energy market, enabling them to increase production, add new employees and make significant contributions to the local, state and national economies.

While the future of the energy industry is always changing, using the correct combination of technology and policy will let the North American energy revolution produce extraordinary results in the coming years.

The North American Shale Revolution is Succeeding with Hydraulic Fracturing

Hydraulic Fracturing is a method of oil extraction that involves fracturing rock with hydraulically pressurized liquid. Also known as fracking. The process consists of a high-pressure fluid being forced into a wellbore causing cracks in rock formations. This enables natural gas, brine and petroleum to flow freely. When the pressure is no longer present in the wellbore, the fractures are kept open by sand or aluminum oxide. This happens when the rocks develop geologic balance. Aschere Energy Dallas knows how to safely and successfully utilize this oil extraction method.

History and Success

In 1947, hydraulic fracturing was performed as an experiment. The initial commercial success resulting from utilizing hydraulic fracturing began in 1949. As of 2012 there were millions of active hydraulic fracking operations around the world. Over a million are being performed in North America. The fastest growing oil-production operations outside OPEC are now in North America. Experts estimate production will increase over 10 percent between 2010 and 2016.

Tight Shale Oil

This is oil located in sedimentary rock formations. The flow of oil from these rock formations is limited by fine grained rock. Most of the oil produced in this situation is from stone associated with shale that has generated oil. This type of rock will require techniques to stimulate it that involve hydraulic fracturing and horizontal drilling.

North American Shale Oil

According to a report prepared by the U.S. Department of energy, there is approximately 24 billion barrels of oil located in North American shale oil formations. This is oil that is able to be recovered. The Monterrey/Santos basin is estimated to have over 15 billion barrels of oil. In the Bakken range and Eagle formation it is estimated to each provide over 3 billion barrels of oil.

Hydraulic Fracturing Benefits

The development of the tight shale oil extraction techniques has the potential to provide significant financial benefits to the economies in North America. This will provide a number of high-paying and long-lasting jobs. It also provides lease and royalty payments to various government entities and private citizens who own land. This will increase the amount of taxes that can be collected by governments. It will also decrease dependence on foreign sources of oil. It is estimated the oil and gas industries in North America will provide trillions in revenue to local and national economies.

Drinking Water Protected

The oil and gas industry is highly regulated. There are a strictly enforced regulations designed to protect water resources during the oil and gas drilling process. Aschere Energy Dallas knows that fracking is a technology that has proven itself safe. It has been used without incident and is able to effectively protect groundwater zones.

Small Independent Oil and Gas Operators Shaping Industry Trends

Aschere Energy Dallas closely follows the independent oil and gas industry believing that the the independent oilman remains central to shaping America’s energy trends. According to the Independent Petroleum Association of America (IPAA), 95% of the nation’s oil and gas wells are drilled by 6,000 independent operators, together producing 54% of the nation’s oil. The average independent producer has been in business for 26 years, employs 11 staff, and has annual gross revenues of about $8 million. More than a half million jobs in the United States are attributed to the independent oil & gas industry. This is an industry that by its very nature reinvests in the American economy, purchasing a wide range of equipment and services across rural America every day.

The National Stripper Well Association estimates that there are 771,000 marginal oil and gas wells currently in production. The overwhelming majority of these are operated by America’s independent producers. Each of these wells makes 10 barrels of oil per day, or less. Together, stripper wells contribute about 20% of the nation’s total annual oil & gas production.

With recent oil price declines small independent oil and gas producers have to find new ways to access the financing needed to continue their operations. Unscheduled well work-overs, temporary or long term loss of pipeline access, and weather are typical problems that confront the independent oilman. New projects are constantly needed to replace declining production, and these represent large investments. From new field exploration to mature field life extensions made possible by the introduction of secondary or advanced tertiary production technologies, Aschere Energy Dallas understands these challenges – and how to balance risks versus rewards – better than most.

America’s oil industry has given the nation an unexpected windfall with growing energy independence complemented by lower prices. Growing US production volumes reduce the leverage previously enjoyed by OPEC. Today, with its more than 9.1 million barrels of daily production, America out-produces Russia and is second only to Saudi Arabia in the total output of oil. Declining US oil imports have directly reduced growth of the national debt while strengthening the dollar. Natural gas production rates assure that the lowest electricity costs in the industrialized world continue for the foreseeable future. Contact Aschere Energy Dallas to find out more about how small independent operators are shaping the US oil and gas industry and America’s future.

New Financial Model for Investing in Energy

Due to the massive scale of the North American Energy Revolution, vast manufacturing reserves of horizontal wells and unvaried exploration of all oil and gas plays, Wall Street investors are eager for a business model that will provide growth in this volatile market.

However it may be troublesome for many large oil corporations to profit on the Shale Revolution, But with extremely inventive ways, a savvy investor can capitalize by looking at “Lean Organizations”.

Large oil corporations are usually swamped with too much inventory or too many lease acquisitions in their portfolios. They typically profit on dividends and expect an increase. However since the price of Oil dipped below $60 a barrel, savvy investors have focused on small independent oil corporations, specifically terribly aggressive ones, have recently run circles around the big boys.

Some visionary leaders have shifted their focus to capitalize on property’s that produce higher returns. The ‘Concept Confirming’ stage, as it’s called, is a collection of deliberate rules, such as value management, unified preparation and alot on a company’s culture.

Like the exploring stage, the Concept Confirming stage relies on creative thinking and the ability to move from one field trend to the next with relative ease. Some corporations have proceeded with double headache of high debt and low value. It is worth considering which companies have been too careful in shopping for the assets and have lost focused on the output model.

Lean and Mean could be the new business model for years to come, and just like JP Getty’s Formula for success: rise early, work hard, strike oil.

Aschere Energy  is poised and strategically placed to take advantage of this new dynamic in Energy Growth.

Aschere Energy follows a disciplined value-focused strategy designed to capitalize on the unique characteristics of the energy industry and the complementary expertise of our industry partners. This relationship with energy experts allows access to research and other technical expertise not usually provided to the general public.

The Transformative Investment Prowess of MLPs

The energy industry in America has outperformed most bond and equity markets during the last decade. The annual return for shareholders in the sector has exceeded 32 percent, which the S&P 500 has returned only 19 percent.

Aschere Energy Dallas believes one of the methods an investor can capitalize on this opportunity is through Master Limited Partnerships (MLPs), which are tax-savvy offerings that enable investors to take a share in energy sector assets throughout North America, including crude and natural gas wells, storage infrastructure and pipeline assets.

One method investors can acquire exposure to the benefits of this market is through Exchanged-Traded Funds (ETS). Investment analysts believe that this approach can provide an investor with portfolio diversity as well as leverage to capitalize on the trend. Investors have access to benefits related to the shale revolution occurring in the United States as well as the strong income opportunities affiliated with the investment vehicles.

MLP pricing fluctuations do not move with the value of the underlying product. So, investors are protected even as the prices of natural gas or oil experience volatility in the markets.
These invest vehicles provide investors with an opportunity grow capital as well as increase dividend payments over time.

According to Aschere Energy Dallas, some MLPs offer investors more than a 9 percent yield on equity stakes, while also featuring approximately 10 percent increase in share price annually, thereby providing investors with potentially almost a 20 percent return on their equity.

By the end of October this year, these MLPs have already yielded 15 percent, and their dividend is expected to expand beyond 6 to 7 percent.

At the same time, Aschere Energy believes investors should consider some of the affiliated fees of ETF vehicles as they do affect minimally the overall return these investment vehicles provide.

The macro and geopolitical forces at work also serve to buttress continuous growth and subsequent attractiveness of these investment tools.

Per the U.S. Energy Information Administration, American natural gas generation is expected to increase by 56 percent from 2012 to 2040. For crude oil, the expected growth projection is 50 percent from 2012 to 2019.

To maintain this growth and investment outlook, the Interstate Natural Gas Association in the United States believes that almost $641bn, or $30bn annually, will be needed to enhance the power midstream infrastructure in America from 2014 to 2035. Ultimately, Aschere Energy believes MLPs will be a critical component of this development.